Ammonium Chloride Market Procurement Intelligence Report

The market for Environmental Goods and its sub-segments such as Ammonium Chloride are at an interesting intersection. Buyers are moving towards longer contract durations with suppliers of Ammonium Chloride to benefit from value-based discounts, integrated products and services, lower renewal cost and lesser expenses on contracting activities.

The global industry has seen a gradual increase in labor cost due to several factors, such as shortage of a trained workforce, increase in minimum wages, regulations around employee benefits and declining appeal for what have been traditionally called unskilled jobs. As the employee expenses increase, suppliers are compelled to pass some of this increase to their buyers by charging higher prices.

Regulatory changes are taking place more frequently and the changes impact multiple functions within an organization. Alignment of procurement practices and decisions with all the new regulations has now become highly challenging, especially when category managers are responsible to centrally procure for multiple regions with different regulations.

Trends like these and many others discussed in this report are necessitating a relook at the way Ammonium Chloride is procured and the procurement cost saving opportunities that exist.

The report discusses in detail the best practices that have served well the category managers responsible for Ammonium Chloride procurement.

For example, Large organizational buyers can leverage their scale of operations to initiate competitive bidding between suppliers. Competitive bidding would enable buyers to have a better visibility of the market prices and may help identify suppliers that offer the most competitive price offering viz-a-viz other players.

Buyers should proactively manage relations with Ammonium Chloride suppliers and have pre-determined intervention criteria for onboarding or replacing a supplier, changing specifications or terms and conditions.

Buyers can consider engaging suppliers that use advanced technologies such as automation, robotics, and lean manufacturing in their manufacturing process. The use of such technologies enables suppliers to control their OPEX and reduce TAT, which will help buyers avail volume-based discounts on category purchases.

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Ammonium Chloride procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Ammonium Chloride procurement. Some examples include:

• Pricing terms in the contract could prove to be inadequate to safeguard the buyer from impact of a sudden increase in supplier's cost, often arising from a lack of clarity on scope of products or services to be delivered
• Category is exposed to the currency exchange risks primarily due to high amount of imports of raw material. The lowering down of dollar and Euro prices against the currency of exporting regions will result in the suppliers incurring extra expenses, which ultimately affects the profitability of the buyer
• The minimal infrastructure development for logistics in several parts of the world portrays a challenge for suppliers to maintain the standardization of logistics of materials

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