Diatomite / Diatomaceous Earth Market Procurement Intelligence Report

Business practices within Diatomite / Diatomaceous Earth market are heavily influenced by changing trends across the category as well as within the broader Non-Medical Chemicals Minerals and Gases market. Suppliers are continuously taking efforts to improve efficiencies and productivity and deploying processes and technologies. Some of these investments are likely to increase their costs in the shorter term, but learnings from other sectors keep the suppliers optimistic about a lean cost structure in the longer run.

Suppliers of Diatomite / Diatomaceous Earth are moving up the value chain - both organically as well as through M&As. Their portfolios are increasingly being diversified with the objective of offering integrated solutions that go beyond just Diatomite / Diatomaceous Earth. Even buyers are engaging vendors who can act as a one-stop solution provider across their geographic footprint. Such strategic engagements can help buyers with savings associated with economies of scale and management of a much smaller supplier base.

Regulatory guidance on data protection and increasing concern over cybersecurity have increased the costs for suppliers as they incur additional spend on compliance and security. These additional costs have a potential to drive marginal increase in prices across the key geographies.

As a result, category managers need to closely monitor the Diatomite / Diatomaceous Earth procurement trends and identify changes required in their procurement environment for the category.

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Diatomite / Diatomaceous Earth category procurement. The report offers a succinct analysis of Diatomite / Diatomaceous Earth procurement best practices.

For example, Buyers should engage with suppliers that have adopted a global delivery model as it reduces buyers' risk. In this model, any disaster/emergency at any operating facility of supplier will result in the work being transferred to a different facility, thereby ensuring continuity of the project and reduced risk for buyers. This model also provides buyers access to skilled labor from across the globe, thereby improving the quality of engineering products provided by the supplier.

Buyers need to evaluate the in-depth expertise of suppliers in the Diatomite / Diatomaceous Earth industry. This can be assessed by considering factors such as the years of experience, number of resources that have multi-year experience of working in the same industry and at least 3 to 5 credentials for the supplier.

Buyers must have a clear understanding of the subcontracting policies, if any, of Diatomite / Diatomaceous Earth suppliers. Factors such as cost incurred, service quality, adherence to timelines, and regulatory compliance of subcontractors employed by suppliers should be carefully assessed prior to engagement.

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