Aircrafts | Intelligence Report | Procurement.Spendedge

Strategic Sourcing Guide to Aircrafts Procurement

Overview

Business practices within Aircrafts market are heavily influenced by changing trends across the category as well as within the broader Transportation Support Services market. Suppliers are no more just the experts in Aircrafts. Many are moving up the value chain and offering integrated services that go beyond just Aircrafts. This new business model helps buyers on multiple counts, such as fewer suppliers to manage, cost savings arising of volume buying and long-term strategic partnerships with a chosen few suppliers that maximize the ROI and allow for strategic optimization experiments.

Historically, suppliers have sub-contracted a fair portion of their work and earned attractive margins, thereby increasing the cost of buyers. Buyers are now scrutinizing the service models of suppliers in much more depth to identify potential for sub-contracting and negotiating hard to avoid cost escalation on account of sub-contracting by employing should-cost models.

Several macro level trends such as slowing economic growth, trade conflicts, rising wages and technological disruptions have put pressure on managers to reduce their spend on Aircrafts without affecting the performance.

As a result, category managers need to closely monitor the Aircrafts procurement trends and identify changes required in their procurement environment for the category.

Aircrafts Procurement Best Practices

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Aircrafts procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Engage suppliers that have adopted a high degree of automation in their business model. Automation of supplier's operations can offer benefits such as decrease in operational costs, reduction in the need for manual labor, lower chances of operational errors and optimized use of space.

There is a shift in focus toward minimizing emissions and energy usage to achieve sustainability goals. Buyers should monitor and evaluate the energy consumption of suppliers' operations before procurement. This also helps adherence with standards mandated by various national and international regulatory authorities.

It is important for category managers to track and measure suppliers' performance against a defined set of KPIs (agreed to by both parties during contract negotiation). The result of suppliers' performance can be directly linked to the quality of support provided.

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Risks in Aircrafts procurement

Aircrafts procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Aircrafts procurement. Some examples include:

Stringency in regulatory standards is high across geographies globally. Changes in these standards can have adverse effects on the industry, as firms may end up paying penalties if they fail to adhere to them
Procurement without consulting the actual users of Aircrafts may result in a mismatch in expectations of the buyer's internal stakeholders versus the actual contract executed
The market is labor-intensive in nature. This exposes the service providers to risks such as labor strikes and unrest in various aspects of their business such as mining facilities and other industrial facilities. Such circumstances may result in inconsistency and delay in offering services to buyers and completing the project in time

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Who should read this report

The report is intended to serve as a one-stop reference guide for Aircrafts procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “Aircrafts: Procurement Report 101” as well as for category experts actively tracking the global Aircrafts procurement market.

You may have just initiated your research to design a winning Aircrafts procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on Aircrafts procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The Aircrafts procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the Aircrafts market?
What is the correct price to pay for Aircrafts? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Aircrafts Suppliers Market?
Who are the top Aircrafts suppliers? What are their cost structures?
Which negotiation levers can reduce Aircrafts procurement cost ?
What are supplier margins in Aircrafts market?
What are the best practices for Aircrafts procurement and what are the potential risks?

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Aircrafts Category Insights: What is inside

The Aircrafts market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on Aircrafts procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Aircrafts. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on Aircrafts market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the Aircrafts category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of Aircrafts procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.