Taking pressure off international negotiations

“Partnering with ICIS makes supplier negotiations so much easier. They’re internationally recognised as a trustworthy and independent source of market intelligence, and it doesn’t take much effort to convince our suppliers to use them in our pricing formulas. What’s more, accessing data, news and analytics is quick and easy via the ICIS.com customer website – we use it every day.”

Sidney Bernardo
Global Procurement Manager – Petrochemical & Renewable Derivatives

As a leading global chemical manufacturer, Oxiteno needs to identify market trends, calculate the effect of price changes, and negotiate fair agreements across the value chain. Its teams of buyers and analysts use ICIS to stay connected to international commodity markets on a daily basis.

When Oxiteno began negotiations with a new supplier in China, both sides were keen to do business, but the negotiations hit a snag.

Thanks to our reputation and global reach the problem was resolved, and both sides could negotiate with confidence.

About Oxiteno

 
Oxiteno is a Brazilian chemical company with an international presence. A global leader in surfactants and specialty chemicals, its products contribute to agriculture, home care, industrial and institutional cleaning, the oil and gas industry, paints and coatings, performance products, and personal care. Throughout its operations, Oxiteno is guided by concern for people and the environment, commitment to innovation, and a belief in the evolution of the world through chemistry.

Oxiteno has partnered with ICIS for more than a decade, subscribing to news and pricing reports that inform its global purchasing strategies, mitigate risk, and support decision-making.

Armed with pricing intelligence, data-driven analytics, and news from the ICIS.com customer website, it closely monitors commodity markets, and stays on top of market developments.

Securing a new supplier

 
With its head office in Brazil, Oxiteno manufactures products at eleven sites in North and South America, with sales offices around the world. It also sources and buys raw materials internationally. The company’s purchasing strategies depend on complex pricing formulas, which rely in turn on a deep knowledge of market trends and cost analysis.

Efficiently linking contractual pricing formulas to market pricing information is crucial for both buyers and sellers. Transparency on data-driven, reliable feedstock prices is also vital for optimising margins, and reassuring clients downstream in the supply chain that they are paying fair prices. When Oxiteno began negotiations with a new supplier in China, the two sides had different views on pricing sources. Oxiteno had to be certain it was buying at a price that reflected market dynamics, but the potential supplier favoured local pricing data that didn’t reliably track the global market.

An additional concern was the need to maintain good commercial relations with a key client in Brazil, whose costs would be directly impacted by the costs of the feedstock sourced from China. Without a mutually-acceptable pricing formula, the chances of progressing the deal seemed slim.

COLLABORATIVE WORKING

 
Oxiteno introduced ICIS to its supplier, highlighting our ability to provide a connected view of global markets, with market experts working across 22 offices, including four in China.

Reassured by the strength and reputation of ICIS as an independent market intelligence vendor, and our easily accessible online platform and app, the supplier quickly recognised the benefits of linking to ICIS prices. The obstacles were overcome, and the deal was successfully closed.

Working with ICIS, Oxiteno were able to:

 

  • Take pressure off pricing negotiations by linking formulasto ICIS pricing data
  • Enhance global presence and reputation
  • Less time on negotiations – more time for other business matters
  • Optimise profitability
  • Gain a transparent and reliable view of prices throughout the supply chain
  • Justify price changes more easily