Accurate raw-material forecasting can help oilfield chemical manufacturers reduce emergency purchasing, excessive inventory, and production interruptions.
For manufacturers regularly consuming Choline Chloride 70%, forecasting should connect finished-product demand with raw-material requirements.
Start With Finished-Product Demand
Determine which products consume Choline Chloride 70%.
These may include clay stabilizers, shale inhibitors, drilling additives, completion chemicals, or stimulation products.
Estimate expected production volume for each.
Calculate Raw-Material Consumption
Once expected finished-product production is known, determine how much Choline Chloride 70% will be required according to the qualified formulation.
This creates the baseline raw-material forecast.
Account for Multiple Products
Some manufacturers use the same raw material across several finished products.
Forecasting should combine total Choline Chloride 70% demand rather than evaluating each finished product independently.
Consider Customer Growth
Existing historical consumption may underestimate future requirements if:
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New customers are being onboarded
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Existing customers are expanding
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New formulations are launching
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Additional basins are being served
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New contracts have been awarded
Sales forecasts can therefore become useful procurement inputs.
Consider Seasonal and Basin Activity
Oilfield chemical demand may change according to drilling and completion activity.
Procurement teams should understand whether customer demand historically fluctuates during certain periods.
Add Appropriate Safety Stock
Forecasts will never be perfect.
Safety stock can help account for:
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Unexpected orders
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Supplier delays
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Transportation issues
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Forecast error
The appropriate amount depends on the business.
Incorporate Supplier Lead Time
A forecast should also identify when orders need to be placed.
Expected consumption during supplier lead time is an important input when establishing reorder points.
Update the Forecast Regularly
Forecasting should be an ongoing process rather than an annual exercise.
Actual consumption can be compared with forecasted consumption, allowing procurement teams to adjust future orders.
Share Relevant Forecasts With Suppliers
Providing suppliers with reasonable visibility into future volume can improve planning.
Useful information can include:
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Monthly requirements
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Expected growth
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Delivery locations
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Peak-volume periods
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Order frequency
Plan Choline Chloride 70% Supply With Rock Chemicals
Oilfield chemical manufacturers with recurring bulk Choline Chloride 70% requirements can contact Rock Chemicals to discuss anticipated quantities, delivery locations, and purchasing frequency.
Planning requirements in advance can help establish a more predictable supply arrangement.