Sales/Marketing
Case Study: A Middle
East-based methanol producer has a lost a key customer to a competitor who offered a
better price. The plant has a long-term procurement agreement in place for its natural
gas feedstock and needs to quickly identify the most profitable outlet for its excess
methanol production.
Key Challenges
- Excess Methanol Inventory: Managing the sudden surplus of methanol
that was previously allocated to the lost customer.
- Market Analysis: Identifying alternative markets and customers who
can absorb the excess production.
- Competitive Pricing: Balancing the need to offer competitive prices
while maintaining profitability.
- Logistics and Distribution: Ensuring the capability to deliver
methanol to new customers efficiently and cost-effectively.
Solution: Our CSM+ chemicals
package helps the sales & marketing director:
- Understand the methanol price outlook for 12-24 months ahead to understand which
regions/countries are likely to be the most profitable
- Identify potential existing methanol purchasers, emerging buyers and understand
competitor economics
- Access to Platts price assessments as the basis for contracting
How our Solution Helps
- Understand current market conditions to understand likely customer demand and timing
of purchase
- Identify the right selling opportunities
- Negotiate contracts with confidence
- Reduce risk in trading decisions
Workflow Solutions:
- Chemicals Enhanced Analysis & Forecasts provides methanol price forecasts for regional spot and contract markets, all based on Platts price assessments which the producer uses as the basis for contracts
- The sales director has already created a refreshable Excel file and simply opens the file to populate it with the latest data. Using this data and taking into account freight costs the sales director identifies South East Asia as the most profitable region
- Using the Directory of Chemicals Producers a list of possible purchasers is identified
- By using Chemicals Cost & Margin Analytics (CCMA) the sales director can understand the marginal economics of competing methanol producers and potential buyers to inform negotiations
