Learn about actual and potential costs
How much should I pay for Farm Products Warehousing?
What is the average price of Farm Products Warehousing?
This procurement report includes pricing information to help you purchase Farm Products Warehousing. 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 Farm Products Warehousing 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 Farm Products Warehousing 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 Farm Products Warehousing?
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 Farm Products Warehousing 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 ?
The market for farm products warehousing services exhibits a high level of market share concentration. The top four suppliers, Archer Daniels Midland Company (ADM), Cargill, CGB Enterprises and Bunge, generate over 55.0% of total market revenue. Each of these suppliers is a vertically and horizontally integrated agribusiness, providing a wide... 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?
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?
What level of access am I allowed to my storage unit?
Must I provide the names of people that are approved with access?
How much notice do you require before I can remove my stored products?
Is there a penalty for removing the stored products early?
What measures do you take to ensure the quality of my stored products?
What is the likelihood that you will have to move my products to another facility or area?
What insurance options do I have to mitigate my losses in the case of moving damage?
What is your loss percentage, on average?
How long have you been storing the types of products I am seeking to store?
What is your longest-term contract with operators in my industry?
How long have you been in business?
What is your rate of return contracts?
Please provide a list of references from the past five years (existing and terminated clients).
How extensive is your upstream supplier network?
How diverse is your downstream buyer market?
Do you have contracted third-party suppliers for value-added services?
What is your distribution of warehouse locations? Do you operate internationally?
Scope of Services
What types of storage facilities do you operate?
What additional services do you provide (on site and off site)?
Do you offer discounts for bundling various services?
What percentage of revenue do additional services generate? Are they a core function or an ancillary service?
Condition of a Facility
When was this facility built?
When was it renovated?
How frequently is the facility inspected?
Has the facility ever failed inspection? If so, how was the situation rectified?
What environmental control systems are in place? When were they put in place? When were they updated?
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Key elements for every RFP
What should my RFP include?
Buyers should state their annual budget approved for these services.
Buyers should state how additional costs will be handled if they exceed the budget.
Buyers should request information regarding additional fees that may occur, such as handling fees.
Buyers should assess the supplier's experience handling products that are similar to the buyer's.
Buyers should look at the supplier's past experience in handling product volumes equivalent to the buyer's, looking at efficiency and accidental damage and product loss rates.
Buyers should consider the price of services from each supplier.
Buyers should provide a timeline stating the key dates that pertain to the RFP process, including the date to submit questions and the final date to submit bids.
Buyers should provide a schedule, if known, of when products will be put into storage and taken out.
Buyers should provide a timeline of key milestone dates that will occur throughout the length of the contract, such as the day initial products will be put into warehousing and the dates that contracts will be renegotiated and renewed.
Evaluate major factors to mitigate risk
How risky is the supply chain?
The supply chain risk for farm products warehousing services is moderate. The key first tier suppliers are utilities suppliers, farm machinery and equipment wholesalers and chemical manufacturers. The most significant source of risk within the supply chain stems from the variable price of inputs like electricity and agricultural chemicals. Suppliers... Subscribe to learn more.