Challenges In Oil And Petrochemical Product Procurement

Oil is regarded as one of the eight core industries of India, and it plays a pivotal role in the growth of the country’s economy. The oil industry also influences the decision-making process of various significant industries of the economy. On the other hand, the Indian petrochemical industry has been one of the fastest-growing industries in the economy. Even the petrochemical industry plays a vital role in providing the foundation for various manufacturing industries such as pharmaceuticals, construction, agriculture, packaging, textiles, automotive, etc.

Power comes with consequences. Being two of the most influential industries in the Indian economy, the oil and petrochemical industries face complex challenges at every step of their work. If not taken care of, these challenges can potentially harm the businesses of primary and associated industries. Even the procurement of oil and petrochemical products is a problematic task to handle. If relied on conventional methods, the process takes more time and resources than it should. Thus, it brings further issues for businesses to deal with.

What challenges are faced by companies in the procurement of Oil and Petrochemical Products?

1. The Oil and Petrochemical industries are prone to constant fluctuations in prices. Along with the current Covid-19 pandemic, the market has seen more severe fluctuations in raw materials prices. The unpredictable prices pose a challenge for businesses in the petrochemical product procurement process for their work. Fluctuating Values:
   The conventional methods also backfire due to physical restrictions and limited interactions with only a few suppliers. However, online procurement solves the issue with ease. It offers companies to interact with various suppliers to get a wide variety in quality and prices. It enables them to select the perfect petrochemical products that fit their requirements.
2. One of the biggest challenges for Oil and Petrochemical industries in maintaining the supply chain to the Unsteady Flow Of Supply-Chain: procure raw materials. The supply chain of these industries is not the most transparent. As most businesses rely on only a handful of suppliers to fulfill their requirements, the slightest shortage on the supplier’s end can heavily impact the supply chain of the associated industries.
3. The uneven demand and supply create challenges for buyer companies, suppliers with business, and suppliers with comparatively less business. However, if companies initiate their petrochemical product procurement online, supply-chain management can quickly be taken care of. Online procurement provides a variety of options for businesses to choose from. Thus, it creates a vast network that helps organizations maintain their supply chain.
4. In general, businesses cannot access the vast amount of procuring options available in the market. It is also the case with Unavailability Of Options: petrochemical product procurement. Usually, businesses rely on traditional methods that hamper their work process overall. They can only interact with limited suppliers due to physical restrictions like distance, time, and more.
5. It also forces them to procure materials at a higher price than what they can potentially get. But with online procurement, companies can easily interact with numerous suppliers of petrochemical products. It offers a variety of types, grades, and prices that eases the procuring process for the business.
6. To handle the enormous amount of data and monitor the changes in the values of Quality Employment: petrochemical products, quality employees become an absolute requirement. But such employees are hard to find in any industry, let alone the oil and petrochemical industries. Diligence and dedication are a must to complete such tasks.

Quality employees help facilitate the procurement process by maintaining the supply chain and implementing immediate changes to improve procuring raw materials. On the other hand, selecting bad employees can end up contributing to complicating the issues and forcing companies to experience more delays, interruptions and potentially incur a loss.

The oil and petrochemical industries face multiple challenges to grow and evolve in the economy. The mentioned factors heavily influence the petrochemical product procurement for companies, and therefore, online procurement can be the best option to tackle these obstacles. And what’s better than OfBusiness?

OfBusiness is a B2B online portal specializing in procurement and credit facilities. We offer procurement of various raw materials to our clients for their projects. We work with known and trusted industrial giants to offer the best-in-class oil and petrochemical products. Our services are spread across the nation to serve our clients quickly and efficiently.

After knowing the challenges, you know E-Procurement is the best way to deal with them all!

Get your quotation done with OfBusiness now!!