Prepared forDrilling fluids company (illustrative)
ScopeLast 12 months · 6 chemical lines
BasisLanded cost — freight, duty, handling included
1 · Executive summary
Twelve months of chemical spend ($3.85M across six lines) was benchmarked against qualified international supply on a full landed-cost basis. Three lines show a commercial gap worth pursuing, one line shows a gap that requires technical validation before it can be counted, and two lines are already within market range — we recommend no action on them.
$3.85M
Annual spend reviewed
6
Chemical lines benchmarked
$311–370K
Indicative annual opportunity
3 / 1 / 2
Pursue / Validate / Hold
2 · Cost position by line
Chemical line
Annual spend
Indicative gap
Annual opportunity
Recommendation
Calcium chloride
$620K
−24%
$149K
Pursue
PAC LV
$480K
−22%
$106K
Pursue
API Bentonite
$310K
−18%
$56K
Pursue
Xanthan gum
$390K
−15%
$59K*
Validate
Lubricants
$850K
−9% · within range
—
Hold
Barite (API 4.2 SG)
$1,200K
−4% · within range
—
Hold
*Gap is real but the product is specification-sensitive downhole; the saving is not counted until samples are bench-tested for equivalence. Holds are a finding, not a failure — on these lines you are already buying well, and we say so.
3 · Recommendation & way forward
01
Pursue (3 lines): qualify alternative suppliers for calcium chloride, PAC LV, and API bentonite — documentation, certifications, and samples bench-tested against the products you run today.
02
Validate (1 line): xanthan gum proceeds to technical equivalence testing first; the commercial case is confirmed only if the spec holds.
03
Pilot: one controlled order on the strongest qualified line, with scope, specification, and acceptance criteria fixed before shipment.
04
Scale: documented pilot performance decides scale-up, line by line. No stage skipped; no obligation to proceed at any point.
4 · Basis & notes
Spend data is treated in strict confidence; an NDA is available before anything is shared.
All comparisons are made on landed cost — unit price plus freight, duty, and handling at your delivery point.
Gaps are indicative, based on current benchmarking against qualified supply, and subject to supplier validation.
Compensation, if you act on the findings, is a gainshare on savings actually realized — agreed in writing before anything moves.