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Procurement Market Intelligence Report

Ethanol
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Ethanol?

What is the average price of Ethanol?

This procurement report includes pricing information to help you purchase Ethanol. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Ethanol been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Ethanol yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Ethanol?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Ethanol with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market share concentration is medium, with the top four suppliers accounting for between 30.0% and 50.0% of the US ethanol market. There are just over 4,000 enterprises supplying ethanol in the United States. Barriers to entry are moderate, underscoring this market's medium concentration level by somewhat discouraging new market entrants.... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Coronavirus

Do you source any materials or inputs that are at higher risk due to the coronavirus pandemic? How are you handling any issues?

How diversified is your supplier base? What countries do you source from?

If one of your upstream suppliers were to shut down, would you have an alternative supplier to switch to?

Are you experiencing fluctuations in demand from your buyers? What measures are you taking to handle these fluctuations?

What steps are you taking to protect your own staff, as well as your clients?

Have you introduced any new products or services to help address issues brought on by the pandemic?

How have you helped similar clients operate efficiently during the pandemic?

Cost Containment

What percentage of your revenue during the past three years was dedicated to inventory purchases?

How have you improved your cost structure during the past three years?

What other ongoing fees and expenses do you incur?

How have fluctuations in input prices affected the prices of your products over the past three years?

How do you mitigate sudden price increases in input materials?

Do you source from multiple suppliers or a single supplier? How does this affect costs?

Inventory

What is your annual ethanol production capacity?

How much of your annual production is diverted to export markets?

What is your current inventory volume of ethanol?

What is your average year-end ethanol inventory?

How is your inventory level projected to change during the next three years?

Delivery

Do you partner with other suppliers to ensure timely and cost-effective delivery?

How do you ensure timely and accurate shipping?

What systems do you have in place to manage outgoing shipments?

What are your storage and transportation procedures?

How does this limit the risk to the products?

Product Quality

What quality standards do you implement to ensure the consistent production of high-quality ethanol?

Have you ever received complaints that your ethanol did not perform up to expectation?

How were these complaints handled?

What sets your company and products apart from your competitors'?

How much of your annual sales are diverted to blended fuel food-grade ethanol and for laboratory or industrial use?

Experience

How much experience do you have producing and supplying ethanol with my specifications and in the volume required?

How many of your customers are repeat customers?

Can you provide client references?

What awards, licenses and certifications do you have?

How do you prioritize the allocation of your products in the event of diminished production and stocks?

Regulation

How do you ensure that your ethanol adheres to regulatory requirements?

Are your operations ready to meet new requirements, such as renewable fuel standards?

How has the high rate of regulatory change impacted your revenue and profit?

Have you ever not met a regulatory requirement?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should state the total value of the contract.

Buyers should state the frequency of payments.

Buyers should provide information regarding how suppliers are able to adjust prices throughout the length of the contract.

Selection Criteria

Buyers should prioritize suppliers that have adequate capacity for the purchase volume.

Buyers should prioritize suppliers that can provide ethanol that most closely matches their specifications.

For more selection criteria information, buyers are advised to consult the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should provide a date for when the RFP was issued.

Buyers should provide a due date for submissions.

Buyers should provide a date for when they will announce the award.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Overall supply chain risk for the ethanol market is high. The primary source of risk for ethanol suppliers comes from the fluctuating corn yields of feedstock growers in the United States; however, the market has also been affected by the tariffs on thousands of Chinese imports, in addition to the... Subscribe to learn more.

HIGH

MEDIUM

LOW