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Procurement Market Intelligence Report

Methanol
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Methanol?

What is the average price of Methanol?

This procurement report includes pricing information to help you purchase Methanol. 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 Methanol 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 Methanol 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 Methanol?

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 Methanol 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 in the methanol market is moderate, with the top four suppliers accounting for between 30.0% and 50.0% of market revenue in 2020. ProcurementIQ estimates that there are about 445 suppliers of methanol in the United States. Market share concentration is moderate in part due to the high... 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?

Distribution

Can you provide a list of your distribution facility locations, both domestically and internationally?

What are your shipping rates to my facilities? Do shipping rates vary if I need methanol shipped to more than one location?

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

Do you allow the usage of a clients' own shipping, transportation or delivery method?

What are your packaging and transportation procedures? How does this limit the risk of contaminating methanol? Does it have an impact on lead times?

Supply Chain

How have fluctuations in input prices, such as the price of natural gas, affected the prices of your product in the past three years? How do you mitigate feedstock price increases?

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

Have you experienced any supply disruptions resulting from feedstock shortages? How did you manage the situation?

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

Do you source materials with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?

How diversified is your supplier base for inputs? Do you source from multiple suppliers in different global regions?

What kind of agreements do you have with your suppliers that control input cost volatility?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle frequent changes in demand?

Quality Control

How do you ensure product quality? What purity testing systems are in place at your organization?

What is the typical inspection process that your methanol stock undergoes? What internal testing procedures do you use to ensure quality?

How often do you experience defects or substandard purity with your products? What procedures do you follow when defects occur?

What is your acceptable margin of error for methanol concentration?

What measures have you undertaken to improve your product safety and efficacy over the past three years?

Related Goods

Do you offer any complementary products or services with the purchase of methanol? If so, what are they?

What type of discounts do you offer for bundling options?

Can related products be included through bundling in our contract? Can I opt out of or change these bundled related products at any time for no additional cost?

Do you have any agreements with group purchasing organizations or integrated delivery networks?

Compliance

Have you been marked for any OSHA or the Hazardous Material Transportation Act violations in the past? How did you remedy any violations?

What certification do your staff have and are there ongoing training sessions or license renewals?

Have you ever had to change any aspect of your business to comply with state or federal regulations?

How do you ensure that your customers are aware of any changes in regulations that might impact them?

Business Continuity

Has your company ever been at risk of bankruptcy?

How much of your revenue comes from your five largest customers? What impact on your profitability would there be if you lost a big customer?

How have changing input costs, such as the cost of natural gas, affected your profitability?

How are your other divisions and ventures performing? What impact does their performance have on this division?

Amidst widespread health concerns, 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?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should state the maximum budget for the contract.

Buyers should dictate how and when price increases must be communicated.

Buyers should detail their policies for submitting invoices.

Selection Criteria

Buyers should prioritize suppliers that offer the most competitive prices.

Buyers should give preference to suppliers that are conveniently located near their facilities or can otherwise reduce shipping costs.

Buyers should consider suppliers that have a strong track record or passing inspections and delivering methanol without any defects.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should indicate the timeline for evaluating potential suppliers, including the deadline by which questions must be submitted and the deadline for placing bids.

Buyers must indicate the date when award information will be available.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Methanol suppliers face a moderate level of supply chain risk on average. The primary input in the production of methanol, natural gas, is highly volatile in both price and supply. Natural gas processors face significant risks because operations can take years to establish. In addition to the cost of starting... Subscribe to learn more.

HIGH

MEDIUM

LOW