Chemicals Procurement Capabilities
With underlying raw material and energy costs experiencing double-digit percentage increases, companies are facing unprecedented price pressure for chemicals and related categories (chemicals, plastic resins, fuel oil, lubricants, motor fuels, paints, propane, etc.). To assure competitive pricing and service levels in today's environment, companies must be able to rapidly assess pricing and proactively manage their supply base.
ICG Commerce chemicals experts can help you stay competitive in these volatile categories. We leverage our industry knowledge and chemicals category market expertise to negotiate best-in-class agreements with manufacturers and distributors, while maintaining or improving service levels. We work with you to determine the optimal pricing solution, whether it be formula based, fixed, or market based pricing. If needed, our category management team can continue to monitor and audit the agreements that have been negotiated to assure compliance and competitiveness. Request more information about
our Chemicals procurement capabilities...
Deep experience, proven results
Chemicals solutions from ICG Commerce give you a practical way to bring years of experience and proven capabilities to your team without bringing on more staff.
- Category Experts: Dedicated resources, each with an average of more than 20 years of experience working for chemicals manufacturing and distribution organizations in the sourcing and management of chemicals and fuels categories.
- Market Insight and Benchmarks: Our experience and knowledge base that has been built through dozens of global chemical and fuel sourcing projects provides up to date knowledge of suppliers, supply and demand trends, and price and service level benchmarks. We also subscribe to and access leading industry publications and market price services (Chemical Week, Chemical Marketing Reporter, ICIS LOR, Pulp & Paper Weekly, Platts, CDI, CMAI, Directory of World Chemical Producers, OPIS, etc) to help our customers anticipate and respond to price changes.
- Tools and Technology: Extensive database of chemicals sourcing history, supplier names and contacts, and category specific sourcing templates allow rapid deployment of effective sourcing processes. We utilize rigorous category-specific supplier scorecards, bid analysis tools, and negotiation processes to optimize the supplier selection process.
- Best Practices and Metrics: Wide experience base and knowledge of best practice supplier service levels, contract terms, pricing mechanisms. For example, for propane and fuels we utilize published market pricing (e.g. Platts, OPIS, etc.) to compare your baseline pricing vs. the market to determine the competitiveness of your current pricing.
Over $400MM sourced with average savings ranging from...
- 4 – 20% for Chemicals
- 3 – 13% for Plastic Resins
- 3 – 12% for Fuel Oils and Lubricants
- 5 – 12% for Paints and Coatings
- 5 – 23% for Motor Fuels and Propane
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