LONDON--(BUSINESS WIRE)--Global procurement intelligence advisory firm, SpendEdge, has announced the release of their ‘Propane Market Procurement Research Report.’ The insights and data in this report provide a strategic analysis of the supply markets, factors influencing purchasing decisions, procurement best practices, pricing models, supplier landscape, and an analysis of the supplier capability matrix for the utilities industry. This report breaks down the data and analysis behind the procurement of propane and acts as an all-inclusive guide for making smart purchasing decisions.
“The growing demand for propane can be attributed to the demand for propylene from end-user industries which is driving the expansion of PDH plant projects to obtain propylene from propane,” says SpendEdge procurement analyst Angad Singh. “Suppliers of propane are increasing their investment in the adoption of IT processes as this will help them to manage their production and logistic solutions better,” added Angad.
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Key Report Features
|Supply Market Insights||Negotiation Strategies|
|Procurement Best Practices||Category Risk Analysis|
|Cost Saving Opportunities||Key Supplier Analysis|
|Pricing Models||Supplier Capability Matrix|
- The demand for propane-powered vehicles across all regions will be driven by the stringent regulations that mandate a reduction in GHG emissions and low prices of propane when compared with other alternative fuels, such as gasoline and diesel. The consumption of propane in the petrochemical industry is increasing with the rise in the number of PDH facilities that are used to produce propylene and ethylene.
- Procurement managers must identify and engage with suppliers that incorporate IT into their operational processes, which includes manufacturing and transportation of propane. Adopting this procurement practice provides clarity regarding the amount of propane transported to the buyer and the progress regarding shipments. It will also help the buyers to gather information and estimate the TAT for the delivery of the product.
- One of the key challenges faced by the buyers in this market includes difficulty in estimating procurement budgets as the high volatility of crude oil prices leads to fluctuation in the cost of propane. This makes it difficult for the buyers to forecast the prices of propane for the contract period accurately leading to difficulty in estimating procurement budgets.
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Propane Industry Pricing Trends
Volume-based pricing is the most widely adopted pricing model in the propane industry it offers the buyers an advantage of high bargaining power to obtain discounts on purchase of large volumes. Most of the large organizations procure propane, based on volume-based pricing for a fixed contract period. Spot pricing is used by buyers to procure propane in additional quantities to meet excess demand. It also offers high transparency in pricing as the prices are based on the prevailing market conditions.
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