Fuel Oil Procurement Intelligence: Staying Ahead of the Game

The fuel oil category is anticipated to grow at a CAGR of 4.8% from 2023 to 2030. The category is mainly driven by the demand, supply, and prices of crude oil. Oil prices are mainly affected by Russia’s ability to produce and export oil, and the ability to increase production by various non-OPEC countries. According to the U.S. Energy Information Administration, Crude oil prices have exhibited a general downward trend since March 2022 at the time when Russia's full-scale invasion of Ukraine has caused Brent crude oil prices to go above USD 130 per barrel. This invasion took place during a period of low oil inventories, and the potential for sanctions or operational disturbances in Russia's oil production further contributed to the upward price pressure. Subsequently, the descent in crude oil prices can be attributed primarily to the deceleration in global economic expansion and a reduction in oil consumption.

Fuel oil is the residual product remaining after the distillation process of crude oil. A greater production of crude oil directly leads to a higher generation of fuel oil. The escalating need for crude oil, particularly in North America, due to the ample availability of shale oil reserves and advanced technologies, is propelling the expansion of fuel oil production even more. The demand is also on the rise in emerging countries such as China and India. The economic expansion in these nations is driving more industries’ establishment, resulting in a higher need for fuel oil.

China is the major importer and is anticipated to keep importing fuel oil as a feedstock to compensate for tight crude quota availability. According to an S&P Global report, Chinese refineries raised up the imports in June 2023 to around 1.32 million mt from 80,000 mt in June 2022. The volume pushed up to 6.96 million mt in the first half of 2023 from a low of 449,000 mt in January-June 2022.

Order your copy of the Fuel Oil Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The potential of technology to enhance performance throughout the upstream oil and gas value chain is realized through the facilitation of optimization and automation. Automation encompasses the utilization of fully or partially autonomous machinery in lieu of human operators to conduct drilling, inspection, and upkeep of equipment within high-risk offshore or drilling and production locations. These mechanized systems possess self-monitoring capabilities and can transmit information to a control center located onshore, where most of their operations are supervised from a remote vantage point. However, the effective transmission of pertinent data to the central hub necessitates adequate bandwidth and potentially relies on edge computing methods.

Fuel processing equipment and machineries connected through internet of things can help in getting the current information of the machinery. This capability can assist fuel oil enterprises in forecasting equipment malfunctions and reduce overall periods of inactivity. The financial impact of a single pump malfunction can be substantial, potentially leading to the loss of hundreds of thousands of dollars in productivity. Thus, with the ability to monitor pump conditions in real-time, preparations can be made for the timely replacement of pumps identified as prone to failure. This immediate stream of data stands to enhance the management team's capacity to arrive at improved and well-informed choices.

The fuel oil suppliers include oil producers, refineries, and distributors. The bargaining power of suppliers can be influenced by the concentration of suppliers, the availability of alternative sources, and the cost of switching between suppliers. In the global oil industry, a few major oil-producing countries and companies dominate the supply, giving them significant leverage over prices. However, the growth of shale oil and renewable energy sources has slightly weakened this power.

Producing fuel oil has various cost components such as raw materials cost, labor, refining, distribution and marketing cost, taxes, and others. Raw material (crude oil) cost is the major component accounting for more than 40% of the total cost. The costs associated with refining undergo seasonal and regional fluctuations. This variability is attributed, in part, to the necessity for distinct fuel oil formulations aimed at mitigating air pollution across various geographical areas within the country. The specific attributes of the fuel oil produced are contingent on both the category of crude oil utilized and the refining technology accessible at the production facility.

In terms of fuel oil sourcing, the hybrid model is a popular engagement model in the category, combining in-house and full-service outsourcing. Some companies opt for a partial outsourcing model. Companies outsource operations such as refining, and distribution. Whereas, employing an in-house team in various task from extracting crude oil up to refining and distribution can be beneficial for the company. Developing a strong relationship with suppliers and ensuring the consistency and traceability of the supply chain is key of sourcing the category.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Fertilizer Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Glycol Ethers Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Fuel Oil Procurement Intelligence Report Scope

• Fuel Oil Category Growth Rate: CAGR of 4.8% from 2023 to 2030

• Pricing growth Outlook: 4% - 5% (annual)

• Pricing Models: Volume based Pricing; Competition based pricing

• Supplier Selection Scope: Cost and pricing, volume, production capacity, geographical presence, and compliance

• Supplier selection criteria: Quality of fuel, product range, contract terms, delivery option, safety and environmental compliance, location and presence of supplier, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies 

• Sinopec

• PetroChina

• Saudi Aramco

• ExxonMobil

• Shell

• TotalEnegies

• BP Plc

• Chevron Corporation

• Marathon Petroleum

• Valero Energy Corporation

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Uncovering the HDPE Procurement Landscape: A Deep Dive

The HDPE category is expected to grow at a CAGR of 4.45% from 2023 to 2030. The APAC region accounts for the largest share in the category. Increasing growth of the Chinese economy stimulated by the increase in import & export, industrial output, capital investment, and consumer consumption in the region drives the demand for the category. Players are focusing on product innovation using continual R&D and making use of efficient technologies to increase productivity and enhance the properties of the product. For instance, in July 2022, ExxonMobil introduced a new range of HDPE products named ExxonMobil HMA706, which is distinguished by great dimensional stability and strong impact resistance. It was validated for fast cycling and food contact and its property of high gloss made it ideal for the packaging of food. 

Companies are continuously focusing on partnering or developing their own technology to strengthen their market position and expand their global reach. For instance,

• In April 2022, U.S.-based Natural gas company, ExxonMobil introduced Exceed S Performance Polyethylene resins that provided toughness and stiffness properties. The new PE platform assisted in providing film designs and formulas while enhancing the conversion effectiveness of HDPE, film performance, and package durability in comparison to current market benchmarks.

• In January 2022, in a move that broadened its global reach and diversified its product line, WL Plastics purchased the HDPE extrusion pipe business from Charter Plastics. This acquisition expanded Charter Plastics' offering of HDPE pipes.

• In December 2021, India-based Four Star Industries, a manufacturer of High-Density Polyethylene conduit, was acquired by Atkore Inc. Atkore made this acquisition to diversify its product offering and better service-expanding sectors like the internet and renewable energy.

• In July 2021, a global manufacturer of HDPE conduits, Dura-Line Holdings, Inc. announced the inauguration of a new manufacturing facility in Georgia, U.S. This expansion was made to cater to the surging demand in the region. 

• In February 2021, United Polyfab Gujarat Ltd launched a new series of HDPOE pipes which are of the size ¾ to 2 inches of iron pipes and old traditional copper tubes mainly for use in water supplies. It aimed to increase the sales of the company's HDPE pipes.

Order your copy of the HDPE Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Category growth is expected to be fueled by the increasing packaging demand in varied industries such as automotive, packaging, healthcare and pharmaceuticals, and construction. HDPE is majorly being used in the form of products such as detergent bottles, food wraps, shopping bags, and automobile fuel tanks, globally. The packaging industry holds the largest segment in the food, beverage, personal, and healthcare industries accounting for 45-50% of the total share.

HDPE Sourcing Intelligence Highlights

• The global HDPE category is fragmented, with numerous small and large players operating in different regions. The competition between players is intense as they strive to gain a wider customer base and improve customer experiences.

• The suppliers of the raw materials in this category have high bargaining power since raw materials constitute about 60%-70% of the product. There is a significant impact on the prices of the category if the supplier raises the prices.

• Raw materials, assets, and utilities costs form the most significant cost component in the category. The overall cost also depends on the type of machine used such as extrusion blow, injection blow, and injection stretch blow for production.

• Most service providers offer complete services from designing, manufacturing, quality check and licensing, and shipping of the product.

List of Key Suppliers 

• Borealis AG

• Lotte Chemical Corporation

• The Dow Chemical Company

• PetroChina Company Limited

• Abu Dhabi Polymers Company Limited

• Formosa Plastics Corporation

• Exxon Mobil Corporation

• LyondellBasell Industries N.V.

• SCG Chemicals Public Company Limited

• INEOS AG

Browse through Grand View Research’s collection of procurement intelligence studies:

• HVAC Systems Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Crude Oil Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

HDPE Procurement Intelligence Report Scope

• HDPE Category Growth Rate: CAGR of 4.45% from 2023 to 2030

• Pricing Growth Outlook: 2% - 4% (Monthly)

• Pricing Models: Cost plus pricing model, volume-based pricing model

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier Selection Criteria: By type, packaging options, operating capability, durability, quality measures, technology, certifications, regulatory compliance, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Accounting Services Procurement: Trends, Technologies, and Transformation

The accounting services category is anticipated to grow at a CAGR of 11.45% from 2023 to 2030. North American region accounts for the largest category share followed by Europe and APAC. Factors such as changes in standards of financial reporting, outsourcing of back-end operations to low-cost economies, and rise in research & development investments are driving the category growth. One of the most significant trends is the AI and cloud-based solutions of accounting services.

Hyper connectivity, supercomputing, cloud computing, and cyber security are particular technology trends driving the finance function and finance & accounting transformation. It has been observed that companies are adopting these technological advancements while offering accounting services to their clients. For example,

• PricewaterhouseCoopers (PwC) created GL.ai, a programme that assists their clients in identifying irregularities in the general ledger

• Cloud accounting software, such as Xero and QuickBooks Online, use live bank feeds, allowing an increasing number of bookkeeping entries to be automated

• MYOB Advisor is an Australia-based software provider that provides natural descriptions of a business's financial position and insights such as cash flow visualization and top customer views to help clients manage their high-value relationships

• In March 2022, GTreasury partnered with Infor to offer an integrated treasury solution built on the Azure platform, including cash management, payments, debt and investment management, risk and exposure management, hedge accounting, and reporting functionality

• In 2022, Intuit Accountants launches Intuit Tax Advisor which integrates Tax Prep and Advisory, a new insights tool for tax professionals to deliver tax advisory services. It integrates with Intuit Accountant software, Lacerte, and ProConnect Tax to provide insights and strategies for clients

• EY's Canvas program allows customers to check in on the status of an audit as it happens and analyze risk areas, allowing auditors to make the most use of their time

Order your copy of the Accounting Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The accounting services category is segmented by type into payroll services, tax preparation services, and bookkeeping, financial auditing, and other related services. Bookkeeping, financial auditing and other accounting services are the largest segments which are estimated to account for 83% -85% of the total in 2022. In terms of end use industry, this category can be classified into IT services, manufacturing, financial services, construction, and others. IT services is expected to be the fastest growing segment. On the basis of service provider, this category can be segmented into large enterprise and small & medium enterprise. The large enterprise segment is projected to account for 57% - 60% of the total revenue in 2022.

This category is highly fragmented, with a significant number of regional firms. In 2022, the top ten competitors accounted for 35.92% of the overall share. PwC, Ernst & Young, KPMG, Deloitte, BDO, and others are among the category's major participants. All the major players are expected to continue pursuing M&A to increase their market share by purchasing smaller and profitable companies. However, new regional players will keep entering the market due to growing demand for industry services.  

This is a labor-intensive sector that requires highly skilled people to provide audits and assurance services. By 2022, the industry is predicted to invest only USD 0.03 - USD 0.05 in capital equipment for every USD 1.00 spent on labor, resulting in a low level of capital intensity. Wages are the industry's major expense, estimated to account for 35% - 40% of sales in 2022. Wage expenses vary according to the size of the business. Non-partner accountants at medium and large-sized businesses in this area are often paid in salary rather than as a portion of profit.

Organizations use three pricing models: hourly billing, fixed fee billing, and value-based pricing model. With advent of technology, hourly billing is not widely used as more work can be done in same amount of time. Value-based pricing model involves charging clients based on the value they perceive in a service, unlike fixed billing, where clients may have to pay more than what they think they should. 

Browse through Grand View Research’s collection of procurement intelligence studies:

• ATM Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Database Management Systems Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Accounting Services Procurement Intelligence Report Scope 

• Accounting Services Category Growth Rate: CAGR of 11.45% from 2023 to 2030

• Pricing growth Outlook: 5%-12% (annual)

• Pricing Models: Value pricing model, fixed fee pricing model, Hourly billing model

• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence

• Supplier selection criteria: Tax, Consulting, Audit & Assurance, Digital Services, Mergers & Acquisitions, Risk Advisory, Legal Services, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies 

• Ernst & Young

• PricewaterhouseCoopers

• KPMG

• Deloitte Touche Tohmatsu Limited

• BDO

• RSM

• Grant Thornton

• Nexia International

• Crowe Horwath

• Baker Tilly

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Employee Background Screening Services Procurement Intelligence: Insights

The employee background screening services category is expected to grow at a CAGR of 9.9% from 2023 to 2030. Businesses are increasingly implementing background checks to protect themselves from legal liability and ensure employee safety. These checks identify potential risks like criminal histories, financial issues, and drug use, enabling them to make informed hiring decisions. For instance, companies can protect themselves against liability in case of crime or accident and ensure employee safety by identifying potential risks like violence or drug use. Through the identification of individuals with a history of violence or criminal behavior, background checks can assist businesses in spotting possible hazards to workplace safety. The growing risk of fraud brought on by employee fraud is a major problem for businesses of all kinds. Employers can use background checks to spot possible fraudsters by looking up their criminal histories, financial difficulties, and work histories.

Technology has made background checks more affordable and accessible, leading to increased demand for these services. Globalization has made it more challenging for employers to verify employee backgrounds due to a lack of international cooperation and increasing use of technology as it is easier for people to hide their criminal records, but employment screening services can help overcome this by providing access to global databases of criminal records. Employers are increasingly becoming aware of the importance of background checks due to the increasing number of noteworthy fraud and violence cases linked to employees with criminal records. For instance, in April 2023, a branch manager (BM) of the Central Bank of India was charged with fraud of USD 37,000 by the Aligarh police. The BM, who was absconding, was charged with stealing the money and using it to wager on IPL cricket matches, according to the police.

Companies are continuously focusing on increasing accuracy through strategic acquisitions or technological partnerships. For instance,

• In March 2023, VerifyNow Pty Ltd, an Australian provider of job screening, was purchased by Accurate Background. The acquisition strengthened Accurate's offering of worldwide compliance-driven employment screening products while enhancing its vision to expand globally.

• In November 2022, Oracle partnered with Global HR Research (GHRR), a technology leader in employment screening services, drug testing, and verifications, to enhance its human capital management (HCM) system and boost its HR resources job placement efficiency.

Order your copy of the Employee Background Screening Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Background checks are becoming more effective and economical for companies by using AI to automate tasks like data collecting and processing. Employers can make better hiring judgments because AI can spot patterns and trends in data that human analysts miss. By learning and developing over time, machine learning, a type of AI, raises the accuracy and effectiveness of background checks. Employers may conduct background checks more easily and affordably without investing in their own equipment thanks to cloud computing and natural language processing (NLP), which automate the extraction of information from documents. Overall, background checks and hiring decisions are improving thanks to AI and NLP.

Employee Background Screening Services Sourcing Intelligence Highlights

• The number of both large and small companies operating in different areas has caused the employee background screening services category to become highly fragmented globally. Players compete aggressively with one another to grow their customer base and offer superior customer service.

• Labor, equipment and software, and compliance account for the largest cost component of the employee background screening services business.

• Most of the service providers offer services such as criminal background checks, drug testing, and employment verification.

List of Key Suppliers 

• Pinkerton Consulting & Investigations, Inc

• HireRight, LLC

• A-Check America Inc.

• Verity Screening Solutions

• Capita Plc

• Triton

• DataFlow Group

• Sterling Talent Solutions

• First Advantage Corporation

• Accurate Background

Browse through Grand View Research’s collection of procurement intelligence studies:

• Business Intelligence Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Customer Relationship Management (CRM) Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Employee Background Screening Services Procurement Intelligence Report Scope

• Employee Background Screening Services Category Growth Rate: CAGR of 9.9% from 2023 to 2030

• Pricing Growth Outlook: 6% - 8% (Annual)

• Pricing Models: Volume-based pricing model and flat rate pricing model

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier Selection Criteria: Employment verification, reference check, education verification, criminal background checks, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.

• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

 

Evaluating Supplier Selection Criteria in Mining Equipment Procurement Intelligence

The mining equipment category is anticipated to grow at a CAGR of 5.1% from 2023 to 2030. Mining activities are increasing to extract metals and minerals from the earth in response to the growing demand for these resources, driving the growth of the category. Moreover, the adoption of natural complex and mineral resources such as diamond, iron ore, coal, and uranium, coupled with the increase in the need for mineral fertilizers to enhance agricultural yield supplements are fueling the demand for the category. The rising utilization of technologies such as IoT, sensors, and automation is reducing the labor cost and operational time associated with the activities. For instance, radar sensors are being used to process bulk solids whereas magnetic susceptibility meters and spectrometers are being used to detect wear and tear in mining equipment. All these factors result in a demand for innovative equipment.

The mining equipment industry is diverse, covering a wide range of heavy equipment and light machinery for either underground, surface, or other mining operations. Mining can occur at the underground or surface level. Surface mining is one of the most common methods for non-fuel minerals, accounting for 97% of the total quantity extracted. Heavy mining equipment includes large machines such as excavators, haul trucks, bulldozers, drills, and crushers. Surface mining equipment consists of hydraulic machine shovels, wheel loaders, highwall miner, draglines, etc. Other equipment includes mobile mining units, drill rigs, water trucks, and autonomous machinery. Mobile mining units are an alternative to truck and shovel dredging and a sustainable way of mining. Autonomous machinery includes teleoperated bulldozers, self-driven trains, and remote-controlled excavators, among others.

In the mining industry, IoT is utilized to achieve not only cost and productivity optimization but also to ensure the safety of people and equipment. Under IoT, the mine sensor network is one of the key innovations. By leveraging IoT, AI, and advanced analytics, mining companies can predict with 85% accuracy about the amount of ore present in crushed bins. The data is collected from 100,000 machinery sensors across international mining sites. By utilizing devices such as wearables, drones, scanners, and proximity detection sensors on moving machinery and vehicles, it is possible to achieve significant gains in productivity. Different ore grades can be identified by these devices and the information can be fed to the various components of the mining value chain.

Order your copy of the Mining Equipment Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

By using AI, mining companies can predict the material requirements, extraction volume, and material consumption by analyzing data. This results in an increase in efficiency and material savings. AI-driven remote monitoring systems are becoming a crucial part of underground mining surveillance. Inspecting the location and condition of workers and assets with respect to environmental parameters are critical to running mines safely, productively, and effectively. AI predictive models also help mining companies to improve their metal processing methods.

Mining equipment that runs on batteries frequently possesses comparable power to its diesel-powered counterparts. The substitution of diesel engines with electric ones can substantially diminish the CO2 emissions produced during mining operations. Currently, battery-powered machinery include trucks, rigs, and wheel loaders. Companies such as Epiroc manufacture battery-driven electric fleet that enables savings in maintenance, ventilation, and cooling. It offers zero-emission underground machinery such as loaders, mini trucks and rigs, production drilling, and rock reinforcement.

The global category is highly fragmented in nature. The mining industry has a complex value chain, which includes elements such as exploration, mining, and processing. As a result of the complexity of the mining supply chain, different jurisdictions, countries, and companies become connected and hence play an important role. Moreover, system fragmentation is one of the major barriers to businesses in this industry, due to which companies have no single platform to standardize the process among organizations. In many companies, mining divisions operate independently, and as a result, there is a lack of coordination and information sharing. This leads to increased fragmentation and a lack of integration in the processes. Companies are trying to implement AI and other digital solutions to enable standardization and thereby increase operational efficiency.

For instance, regionally in India, this highly fragmented market has organized as well as unorganized sectors. Organized segments mainly include large private organizations that cater to small, medium, and large-scale projects. On the other hand, the unorganized sector mainly operates on a small-scale basis. Global companies are also developing new digital mining solutions to enhance their offering. Caterpillar, Komatsu, Metso, and other large firms are also involved in new product launches and partnerships to sustain in the market and attain a competitive edge. For instance:

• In December 2023, Epiroc introduced new digital solutions in the surface mining industry, which consists of safe blast and blast support. This solution can direct warning messages to persons situated in defined risk zones.

• In October 2023, Epiroc and Newcrest, a gold mining company, entered a MOU (memorandum of understanding) agreement. The main aim was to implement a comprehensive approach to the mining process. Under this collaboration, Epiroc's automation, electrification, and digitalization technology will be employed in Newcrest's mines to enhance and optimize the excavation process.

Buyers in the category, such as mining companies, can have moderate to high bargaining power. They are often large entities with significant purchasing volumes. However, the specialized nature of mining equipment and the importance of reliable and high-quality machinery might limit the buyers' power to some extent.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Bearings Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Metal Finishing Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

The total cost of ownership of manufacturing machinery can be divided into fixed and variable costs. Fixed costs include elements such as capital, machinery, depreciation and salvage value. Variable costs include material, labor, repair and maintenance, legal costs, and others. The mining equipment cost can range from USD 1 million to USD 5 million. Mining equipment maintenance costs account for 30% to 50% of the overall operational costs. The cost of equipment also depends on the type of equipment and other specifications.

Under sourcing intelligence, end-user companies or clients generally outsource their mining equipment requirements to these category vendors. It is estimated that more than 85% of mining companies outsource more mining activities than mineral processing. Vendors are evaluated on equipment quality and type (underground or surface equipment), and technology offered (e.g., technology-driven fleets, automated vehicles, etc.) during mining equipment purchases. When selecting the equipment, it's crucial to consider factors such as the analyzing mining site, the reliability and effectiveness of the machinery, the equipment's cost, and the suppliers' experience. 

Mining Equipment Procurement Intelligence Report Scope

• Mining Equipment Category Growth Rate: CAGR of 5.1% from 2023 to 2030

• Pricing growth Outlook: 5% - 6% (annual)

• Pricing Models: Volume-based pricing, product-based pricing, competition-based pricing

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier selection criteria: Types of equipment offered, application of equipment, delivery time and option, technology-driven products, regulatory compliance, operational and functional capabilities, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies 

• Caterpillar

• Liebherr

• John Deere

• Epiroc

• Metso

• Komatsu

• Guangdong Leimeng Intelligent Equipment Group

• Sandvik

• Baichy

• Vipeak Mining Machinery

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Exploring Outsourcing Options in Office Supplies Procurement Intelligence

The office supplies category is forecasted to grow at a CAGR of 2.1% from 2024 to 2030. In 2023, North America held the largest share of the global category, accounting for 32%. This region’s growth is attributed to the strong demand for personalized stationery, advancements in manufacturing technology, and a rising preference for green products. Asia Pacific is poised to witness the fastest growth rate during the forecast period, due to rapid expansion of urban areas, rising demand for innovative products, expansion of co-working spaces, and increased adoption of e-commerce.

Office supplies are utilized by a wide range of end-users to enable administrative tasks, enhance workplace functionality, and ensure a well-equipped and productive workspace. Key end-users of this category include corporations, educational institutes, hospitals, hotels, and NGOs. For instance, hospitals use office supplies for patient records and billing, and NGOs deploy these items for processing documentation, fundraising, and preparing outreach materials.

Key technologies influencing the growth of this category include smart notebooks and pens, IoT-enabled office stationery, AI-powered inventory management, collaborative whiteboards, and smart toners. Collaborative whiteboards are being deployed to facilitate interactive workplace environments. They allow employees to plan, brainstorm, and visualize ideas in real time, regardless of their geographical location. They are equipped with features such as drawing tools, document-sharing capabilities, and sticky notes to enhance teamwork, communication, and project management within remote teams.

Key suppliers that are providing office supplies are competing based on pricing strategies, profit margins, product personalization and customization, sustainability measures, lead time reduction, and regulatory compliance. Customers in this category have diverse options in terms of product range, budget size, flexible payment terms, value-added services, after-sales support, and competitive benchmarking. Regulatory laws in several regions require suppliers to comply with rigorous standards related to product safety, manufacturing, environmental impact, and materal recycling.

Order your copy of the Office Supplies Procurement Intelligence Report, 2024 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The prices of office supplies are affected by several variables. Key factors affecting the prices include product range, production costs, distribution and logistics costs, and market competition. Production costs vary based on fluctuations in the prices of key raw materials and labor. For instance, prices of raw materials such as polymers, pulp, plastic, paper, metals, and adhesive materials are affected by feedstock and energy costs. Labor costs fluctuate based on geographic location, economic conditions, labor laws, skill requirements, and competition.

The COVID-19 pandemic caused substantial disruption in the global office supplies industry. During the COVID-19 pandemic, demand for items in this category plunged due to offices increasingly deploying a work-from-home structure and educational institutes shutting down. However, demand from hospitals saw significant growth due to a rise in the number of patients. Since 2023, the overall demand has recovered considerably and is anticipated to increase further during the next few years. Post the pandemic, key suppliers are increasingly leveraging e-commerce platforms to distribute products, as consumer purchases from these platforms are on the rise.

Office Supplies Sourcing Intelligence Highlights

• The office supplies category comprises a fragmented landscape, with vendors engaged in intense competition.

• Due to the intense market competition, customers within the category have significant bargaining power, providing them the flexibility to switch to superior alternatives.

• India and China are favored as low-cost or best-cost countries for office supplies due to their reasonable raw material, labor, equipment, packaging, labeling, and distribution costs.

• The key cost components of this category encompass raw materials, labor, equipment, packaging and labeling, storage and distribution, and other costs. Other costs comprise R&D, rent and utilities, general and administrative, sales and marketing, compliance, and taxes.

List of Key Suppliers 

• 3M Company

• ACCO Brands Corporation

• Deli Group Co., Ltd.

• Global Office Supplies Ltd.

• Nauticon Office Solutions

• Novatech, Inc.

• SASCO Group

• Stanley Black & Decker, Inc.

• Staples, Inc.

• The Lyreco Group

• The ODP Corporation

• W.W. Grainger, Inc.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Learning and Development Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Management Consulting Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Office Supplies Category Procurement Intelligence Report Scope

• Office Supplies Category Growth Rate: CAGR of 2.1% from 2024 to 2030

• Pricing Growth Outlook: 5% - 10% increase (Annually)

• Pricing Models: Cost-plus pricing, bundled pricing, demand-based pricing, competition-based pricing

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier Selection Criteria: Geographical service provision, industries served, years in service, employee strength, revenue generated, key clientele, regulatory certifications, product range, delivery mode (online/offline), sustainable product offerings, customer service, lead time, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization.Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Chlorine Procurement Intelligence: Revenue Forecast

The chlorine category is anticipated to grow at a CAGR of 5.0% from 2023 to 2030. In 2022, the category size was estimated to be valued at USD 35.7 billion with the chemical industry leading the market share as chlorine is a key ingredient in the production of a variety of chemicals, including PVC (polyvinyl chloride), bleach, solvents, pesticides, and pharmaceuticals. This broad range of applications is the primary driver of its growth. The demand for chlorine is closely linked to industrial sectors such as water treatment, disinfection, cleaning agents, etc., that further fuel the category expansion. Another growing factor is the increased consumption of fertilizer in the agricultural business. In June 2022, two new antimicrobial and disinfection products, KEEPER and OXINE, have been introduced by Kemin Food Technologies - Asia, a manufacturer of ingredients. These new solutions treat food, water, and food contact surfaces, including equipment using chlorine dioxide.

As research and innovation continue along with green and sustainable concerns, there is a growing demand for categories to be used in eco-friendlier ways. Green solvents, bio-based polymers, production of lithium-ion batteries and hydrogen are some of the potential approaches that are being implemented in the industry. Chlorinated solvents are utilized among other things, in the aerospace, automotive, and medical industries to clean precise metal. In Feb 2023, Covestro, a leading plastic manufacturer, and thyssenkrupp nucera, a comprehensive solution and technology company, collaborated to develop the first chlorine manufacturing facility of large magnitude using ODC (oxygen depolarized cathode) technology in Spain. When compared to chlor-alkali, the facility saves up to 25% more energy and prevents tons of CO2 emissions each year, providing an effective and sustainable supply of the category.

The category is partially fragmented with multiple suppliers and producers, ranging from large multinational chemical companies to smaller regional or local players. Such type of market offers opportunities to players along with increased competition. As the category exhibit different applications, it leads to multiple niche market taking end use into account, with industries having their own production capacity, distribution network, and customer base. The industrial demand, economic conditions, regulatory framework, and technological advancement influence the category distribution. The high adoption of advanced technology and the presence of large players in North America create ample growth opportunities for the category. The Asia-Pacific region controls most of the worldwide market share. In India, the rapid expansion of industrial sectors and increased demand for freshwater, directly or indirectly impact the category industries.

Order your copy of the Chlorine Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The cost of producing chlorine includes raw material, energy, labor, and other manufacturing expenses. It can vary depending on the specific production method employed, such as membrane cell, diaphragm cell, or mercury electrolysis. Each method has its own cost considerations and efficiency levels. The primary raw material for its production is salt (sodium chloride), which is widely available and relatively low in cost. The prices are affected depending on the proximity to raw material for example, the Gulf Coast in the United States has lower prices compared to the rest of the region. Irregularities in supply-demand coupled with the volatility in exchange rates have impacted prices of this category in the Asia-Pacific region. In Europe, increased electricity cost and retaliatory tariffs against Russia have inflated the production cost of the category resulting in high pricing around USD 370 MT.

This category can be sourced from various methods, primarily through production plants, hydrocarbons, or globally through import/export activity. North America has a significant presence in the industry and accounts for the largest producer followed by large players from Europe. Countries in the Middle East such as Saudi Arabia and Qatar, which have abundant access to raw materials also contribute to its supply. 

Browse through Grand View Research’s collection of procurement intelligence studies:

• Chemical Management Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Plasticizers Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Chlorine Procurement Intelligence Report Scope 

• Chlorine Category Growth Rate: CAGR 5.0% from 2023 to 2030

• Pricing growth Outlook: 10 - 13% (annual)

• Pricing Models: Spot pricing, Production and processing pricing, Contract Pricing, Quality standards pricing, Competition based pricing

• Supplier Selection Scope: Cost and pricing, Past engagements, Production capacity, Supply chain and Logistics

• Supplier selection criteria: Quality standards, production capacity, pricing, supply chain transparency, transportation and handling, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies

• Hanwha Chemical Corporation

• INEOS Group

• OLIN Corporation

• BASF SE

• Tata Chemicals

• Occidental Petroleum Corporation

• Formosa Plastics Group

• The Dow Chemical Company

• Ercros 

• Tosoh Corporation

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

 

Unlocking Success: Tax Advisory Services Procurement Intelligence

The tax advisory services category is anticipated to witness growth at a CAGR of 9.3% from 2023 to 2030. In 2022, North America held a substantial share in the global category, followed by Europe and Asia Pacific. The Asia Pacific region is expected to witness the fastest growth rate over the forecasted timeframe owing to evolving tax regulations, growing need for tax compliance, rise in globalization, increased awareness of tax planning, and technological advancements. In Europe, an increasing number of organizations are outsourcing tax-related services to reduce costs, ensure compliance with complex tax laws, and navigate cross-border tax challenges. By outsourcing tax-related functions, finance teams are investing their time in strategic undertakings rather than spending time in repititive, labor-intensive tax-related activities.

Key sectors utilizing tax advisory services include real estate, BFSI, IT & Telecom, media and entertainment, manufacturing, energy & utilities, retail, hospitality, tourism, food and beverages, and healthcare. For instance, by availing tax advisory services, companies in the BFSI industry are improving accuracy in tax filing and adherence to regulatory requirements. Similarly, companies in the hospitality, tourism, and food and beverages industries are able to streamline their finance and tax accounting operations while guaranteeing compliance with industry-specific regulations. Likewise, companies in the retail and manufacturing sectors are increasingly availing tax advisory services to improve financial planning, provision, and compliance.

Besides cloud computing, artificial intelligence (AI) has gained significant popularity in the industry. AI technology is a powerful instrument for tax research that provides both qualitative and quantitative insights into complicated topics. Tax professionals can guarantee accuracy in calculating tax liabilities by using AI-powered tax software, which finds potential credits and deductions that taxpayers could have missed and ultimately lowers their tax burden. AI can also benefit tax professionals by automating repetitive operations, which frees up time for more complicated tax issues that call for human expertise. In addition, suppliers in the tax advisory services category are increasingly adopting tax automation technologies to optimize and streamline tax preparation processes.

Order your copy of the Tax Advisory Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The demand for tax advisory services intensified post the outbreak of the COVID-19 pandemic, due to a rapidly changing global tax environment, and tax authorities increasingly adopting a real-time, digital tax environment. For instance, in the post-pandemic era, corporations in Brazil were required to disclose full invoice details before being able to obtain a valid invoice number from tax authorities. Moreover, as businesses all over the world started operating remotely, the need for automated and AI-based tax filing systems has increased post the outbreak of the pandemic. In addition, the implications that the pandemic created on the category include continuously evolving tax provisions, challenges of compliance, restructuring of businesses, and rising requirement of financial planning.

Tax Advisory Services Sourcing Intelligence Highlights

• The tax advisory services category exhibits a moderately consolidated landscape, with few of the large players holding majority of the market share.

• Threat of new entrants in the category is high. Entry barriers are low as tax advisory consulting is not a capital-intensive business, thereby encouraging smaller players to consider a market foray.

• India is the preferred low-cost/best cost country for sourcing tax advisory services. Hiring specialists in India is less expensive than in the U.S.; this is because the values of the currencies in the two countries differ.

• Consulting fees, technology costs, selling general & administrative (SG&A), tax, and profit are the key cost components in the tax advisory services category. Consulting fees can be bifurcated into salaries, benefits, overtime, cost of subcontractors, and other bonuses.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Artificial Intelligence Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Digital Marketing Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

List of Key Suppliers 

• BDO International Limited

• CliftonLarsonAllen LLP

• Crowe LLP

• Deloitte Touche Tohmatsu Limited

• DPNC Global LLP

• Ernst & Young Global Limited

• Grant Thornton LLP

• KPMG International Limited

• Marcum LLP

• PricewaterhouseCoopers International Limited

• RSM International Ltd.

• USM-SBC Consulting LLP

Tax Advisory Services Category Procurement Intelligence Report Scope

• Tax Advisory Services Category Growth Rate: CAGR of 9.3% from 2023 to 2030

• Pricing Growth Outlook: 4% - 8% increase (Annually)

• Pricing Models: Fixed pricing, FTE-based pricing, time & materials pricing

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier Selection Criteria: Industries served, years in service, revenue generated, employee strength, geographic service provision, international tax services, indirect taxes, financial services tax, tax controversy & dispute resolution, tax reporting & strategy, tax policy & administration, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

 

Driving Sustainability: Oleochemicals Procurement Intelligence

The global oleochemicals category is anticipated to grow at a CAGR of 7.1% from 2023 to 2030. Growth of the category can be attributed to high cost of petrochemicals, growing consumption of sustainable, bio-based, and renewable chemicals, and rising demand by end-user sectors such as food processing, pharmaceuticals, textiles, personal care & cosmetics, etc. Petrochemicals, which are made from petroleum, can be substituted with oleochemicals. Oleochemicals are produced using variety of chemical processes, including hydrogenation, alcohol-based alcoholysis, and water-based hydrolysis. In addition, it is a substitute to synthetic chemicals due to the presence of low to non-existent amount of carcinogens. High input costs are a common barrier for the category. This is particularly true for the fatty acid manufacturing process, which is necessary for the synthesis of oleochemicals. Future pricing for these chemicals is difficult to anticipate because crude oil prices are typically unstable.

Technologies that drive the global category include additive manufacturing, blockchain, big data analytics, and IoT (internet of things). Advanced manufacturing is becoming significant in the production of oleochemicals since it enables efficient, accurate and faster manufacturing. It involves application of technologies such as robotics & automation and additive manufacturing to optimize the process of manufacturing. Blockchain technology can enhance supply chain transparency in the production and can assist in ensuring that everyone involved in the supply chain has access to the same data by generating a transparent and safe record of transactions. By doing this, the likelihood of fraud can be decreased and mutual trust can be increased. Massive amounts of data is produced in the sector, ranging from output quantities and quality control measures to raw material inputs. Big data analytics enables businesses to examine and make sense of this enormous volume of data, gaining insightful knowledge that helps them to streamline operations and make wise decisions.

The category for oleochemicals is moderately consolidated, with few global players holding majority of share in the market. Numerous smaller businesses serve specialized markets and applications, but a few major players still hold a disproportionate amount of power in specific regions and segments. Players in the market mostly base their decisions on the cost and utility of the product. A number of significant firms are involved in many strategic alliances to advance sales and brand awareness in an effort to increase their market share and get a competitive edge. For instance, Oleon Americas, a firm that produces chemicals through natural chemistry, opened its sustainable oleochemicals production facility in Texas (U.S.), in June 2023. Due to stable supply assurance, aggressive pricing, and reduced risk, buyers have more negotiating power with significant suppliers that are integrated from plantations to oleochemicals than with non-integrated suppliers.

Order your copy of the Oleochemicals Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Raw materials (oils and naturally occurring fats derived from plants and animals), labor, energy, equipment & machinery, and packaging & transportation constitutes the key cost components in this category. Over 65.9% of the overall production cost is attributed to raw materials, making them the primary cost driver. Prices of raw materials / feedstocks in the category are complex, and there are always variables that will raise them up and / or move them downward. For instance, the price of palm oil is influenced by the yield of trees (which are typically weather dependent), stock holding by the producers, and prices of fuel. Similarly, ‘Tallow’ (a by-product of beef processing), is ought to be inexpensive unless it is more valuable than its primary product. Until November 2023, the average price of palm oil over the year had been MYR 3,760 per tonne. The price of tallow fat ranges between USD 2.90 - USD 7.80, in the U.S.

Asia-Pacific region dominates the global oleochemicals category, holding over 40.9% of global market share. The region witnesses the presence of significant number of producers, particularly in Indonesia and Malaysia. Its sizable captive market and wealth of raw materials, like palm oil and palm kernel oil, have also prompted firms to increase their production capacity. The availability and affordability of inexpensive labor are the main reasons for the extensive offshore of manufacturing operations from Europe and North America to Asia-Pacific nations. Ensuring that a supplier is sustainable & reliable by examining its supply chain and understanding its sourcing methodology, assessing if a supplier prioritizes green processes, evaluating a supplier’s customization capabilities, and focusing on cost-effectiveness while selecting a supplier in terms of favorable contractual terms and prices are some of the best sourcing practices considered in this category.

Oleochemicals Procurement Intelligence Report Scope

• Oleochemicals Category Growth Rate: CAGR of 7.1% from 2023 to 2030

• Pricing Growth Outlook: 5% - 10% increase (Annually)

• Pricing Models: Cost-plus pricing, Competition-based pricing

• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence

• Supplier Selection Criteria: Industries served, years in service, geographic service provision, range of products on offer, type of packaging, quality assurance, logistics & warehousing capability, regulatory compliance, lead time, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Browse through Grand View Research’s collection of procurement intelligence studies:

• Chemical Management Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Caustic Soda Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Key Companies 

• Berg + Schmidt GmbH & Co. KG.

• Corbion NV

• Croda International Plc

• Ecogreen Oleochemicals (Singapore) Pte. Ltd.

• Emery Oleochemicals

• Evonik Industries AG

• IOI Oleochemical Industries Bhd

• JNJ Oleochemicals Industries, Inc.

• Kao Corporation

• Oleon NV

• Vantage Group

• Wilmar International Ltd.

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Powering the Future: Electric Vehicles (EVs) Procurement Intelligence Insights

The electric vehicles (EVs) market is anticipated to witness growth at a CAGR of 14.5% from 2023 to 2030. In 2022, Asia Pacific accounted for 51% of the market share followed by North America and Europe. Asia Pacific is the most lucrative region in terms of revenue as there’s an upsurge in the adoption of EVs particularly in China, India, and Japan. In addition, due to the easier availability of battery raw materials and lower production costs, several key players are eyeing China to set up their manufacturing facilities.

Leading markets such as China, the US, and Germany are spending heavily on EVs, charging infrastructure, and research & development for effective charging technologies, longer-range EVs, and more affordable batteries. In addition, stricter government rules across the globe are one of the key factors driving up demand for EVs. For instance, the European Union has set a goal of achieving net-zero emissions by 2050. The electric vehicles category is witnessing increased adoption of V2G (vehicle-to-grid) technology which enables drivers to get the most out of their charging, while also optimizing the grid network for a much larger number of vehicles, or a home network that allows homeowners to go off the grid.

The COVID-19 pandemic significantly affected the market in 2020 and 2021. The number of on-road vehicles abruptly decreased. However, after June 2020, when the lockdowns were lifted in most nations, sales of all sorts of EVs increased. BEV and HEV sales in particular dominated the industry. As OEMs prepare to introduce new EV models in the upcoming years, the period between 2023 and 2025 is anticipated to be a prosperous period for EV sales. Growth of the category is anticipated to remain brisk due to the government's strong support for vehicle electrification and the drop in battery prices

Order your copy of the Electric Vehicles (EVs) Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Electric Vehicles Sourcing Intelligence Highlights

• The global electric vehicles category is moderately fragmented, with top players in the market based in parts of Europe, Asia, and North America.

• China is the largest manufacturer of EVs and exporter of EV batteries across the world, particularly in Europe.

• Despite being a competitive industry, the bargaining power of buyers is low as electric vehicles encompass a higher cost of production, and due to costlier batteries and other technical aspects, the scope of negotiation is almost negative.

• Vehicle cost, financing, insurance, purchase taxes, annual registration fee, maintenance costs, and other additional expenses are the major cost components of this category. Other expenses can be further bifurcated into home charger cost, electricity purchase, liquid fuel purchase, electricity taxes, and liquid fuel taxes.

List of Key Suppliers 

• BMW AG

• Tesla, Inc.

• Volkswagen AG

• General Motors Company

• BYD Company Limited

• Mercedes-Benz Group AG

• Nissan Motor Co., Ltd.

• Toyota Motor Corporation

• SAIC Motor Corporation Limited

• Stellantis N.V.

• Ford Motor Company

• Hyundai Motor Company

• Renault SAS

• XPeng Inc.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Electric Vehicle Battery Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Electric Vehicle Charging Connector Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Electric Vehicles Category Procurement Intelligence Report Scope 

• Electric Vehicles Category Growth Rate: CAGR of 14.5% from 2023 to 2030

• Pricing Growth Outlook: 5% - 10% (Annually)

• Pricing Models: Cost plus pricing model, fixed price pricing model

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier Selection Criteria: Type of EV, driving range, power & torque, charging specifications, energy consumption, type of battery and capacity, and other factors

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions