Reduce costs when purchasing chemicals

Chemicals are very diverse and complex. They are divided into inorganic and organic chemicals, plastics, dyes, synthetic fibres, petrochemicals and many other categories. There are only a few suppliers of the many products and often the prices depend on the volatile prices of the preliminary products (e.g. oil). This makes it difficult to judge whether prices are attractive in the benchmark.

Chemicals as raw materials in production

Chemical components also influence each other. Depending on the machine or production process, chemicals must have precisely defined properties in order to guarantee consistent product quality. One example: In the tobacco industry, the cigarettes produced must always taste exactly the same. Extensive tests are therefore carried out before new chemicals can be used. In the case of paints and varnishes, even a substance that has been stored for a long time can significantly change the consistency of the paint application and the quality. The reliability of the supplier therefore also plays a major role when companies buy chemicals. Optimization seems to be very difficult here. This requires both chemical and technical as well as business know-how.

Finding the right supplier for chemicals

The supplier landscape is just as complex as the product landscape, where there are not only producers but also dealers and refiners. Factors such as the throughput of substances (are the substances sold regularly? Or only once a year?), storage conditions and purity play a role. There are many up-and-coming producers from Asia on the market. They not only compete with established producers at attractive prices, but also in terms of quality. Here, too, there are stumbling blocks: If a company buys chemicals from a country outside the EU, customs costs may be incurred. Import restrictions must also be observed. Violations of customs regulations can be punished with high penalties or even lead to production stoppages. The effort required to comply with import regulations must be taken into account when purchasing chemicals from third countries.

Buy chemicals cheaper

Our cost management project offers a solution for the optimized purchase of chemicals: Take advantage of the knowledge of our experts, who have been dealing with the chemicals market for many years. They regularly develop optimized solutions for our customers. These solutions also include the necessary tests for product substitution proposals to ensure that the proposed substances work in practice. With a project, you benefit from a sustainably optimized supplier and product portfolio in the field of chemicals. As a partner of Expense Reduction Analysts, we are proud to have once again received the german Top Consultant award for ERA in 2018.

How does a cost management project for chemicals work?

First you will receive from us a document on the confidentiality of all information, which we both sign. In an interview we discuss the potential savings in your company. After an analysis, you will receive an assessment from us as to whether potential can be expected. If you decide in favour of us, we start the project. Depending on the project, our consultants work together with your specialist departments and management. Together, we define the requirements that have to be fulfilled; after all, it is not just the price that counts, but many other qualitative aspects. After our savings proposals, you decide which ones you want to implement. The advantage for you: You will only receive an invoice from us when the savings have actually been realised. In other words, we will provide you with advance services and work on cost optimization projects on a success-based basis.

Find out how you can optimize your costs for chemicals

Note: The offer is only for companies.

Are you also interested in optimizing other cost types? Take a look at our overview of cost types and benefit from the support of many experts for each individual area!

This post is also available in: Deutsch (German)

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