Chemical Management Services Category Overview
The Chemical Management Services Category is expected to grow at a CAGR of 5.4% from 2023 to 2030, mainly driven by the rising demand as well as the CaaS model's convenience. Additionally, this method aids in lowering the consumption of hazardous chemicals by utilizing them more effectively. The increasing pressure on businesses to follow safety and environmental laws as well as the desire to save costs and boost productivity is further enhancing the growth. It entails contracting with outside organizations to purchase, store, and dispose of chemicals, which enables businesses to better manage their inventory. The increasing number of environmental regulations that help companies manage their waste streams more skilfully benefits the providers.
The key technologies used are barcoding and labelling systems and software for managing chemical inventories. Using inventory management software, PPG Industries keeps track of its chemical stockpiles and controls chemical usage, storage, and disposal. They can also use it to optimize their inventory and comply with safety and environmental standards. By utilizing barcoding and labelling technologies, Haas TCM is able to monitor the usage and placement of chemicals across all of its sites. Additionally, it helps to lower the likelihood of chemical spills and other environmental accidents, enhances operational efficiency, and allows the organization to reduce the inventory of a specific SKU and many others by 60%.
This category is highly fragmented, with many small and large companies offering a wide range of services to clients around the world. The services require a high degree of expertise that have challenges and also create opportunities for smaller suppliers to offer niche services that focus on specific industries or region. On the other hand, large multinationals typically offer a broader range of services and have larger global footprints with more standardized services and pricing.
Order your copy of the Chemical Management 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
Businesses, constantly use a fixed-fee pricing structure that takes into account the type of service being offered, the length of the contract, and a fixed charge per location. The price can vary based on the complexity of the management program and the size of the organization, among other things. Additionally, businesses spend money on services like training, consultation, and auditing. For instance, a business that needs a sophisticated chemical management program may spend more than one that only needs simple handling and storage services. Every dollar spent on chemicals results in an additional cost of USD 1 to 3 for chemical management. Considering this, a company spending USD 1 million on chemicals must spend an additional USD 1 to 3 million managing them. The major cost components are labor, transportation costs, and chemical costs. The management requires a high level of expertise and experience which result in a high cost of labor. Transportation is a critical component that ensures chemicals are delivered safely and on time. Chemical costs include expenses incurred in purchasing, storing and disposing of chemicals.
The United States is a major region in this market with several companies offering a range of services to clients across industries such as aerospace, automotive and electronics. Germany is another major region due to its capability offering to clients across industries such as defence and aerospace. This country has strong focus on sustainability and environmental compliance, which has helped drive growth. Sourcing is the critical component which develops the comprehensive management plans, sourcing chemicals from reliable suppliers, monitoring the usage, training employees for safety and maintaining accurate inventory.
Chemical Management Services Procurement Intelligence Report Scope
- Chemical Management Services Category Growth Rate: CAGR of 5.4% from 2023 to 2030
- Pricing growth Outlook: 9-10%
- Pricing Models: Fixed-fee pricing model
- Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
- Supplier selection criteria: Safety, compliance, reliability, experience, 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
- Haas TCM
- PPG Industries
- KMG Chemicals
- Henkel
- ChemicoMays
- BP
- Quaker Chemical
- EWIE
- Intertek
- Chemcept
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
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