Cartoning Machines Category Procurement Intelligence Report

Business practices within Cartoning Machines market are heavily influenced by changing trends across the category as well as within the broader Warehousing and Storage market. Managing the logistics risks and building a resilient supply chain has taken the centerstage among corporate priorities. Companies are investing heavily to be able to detect disruptions in time and respond in a manner which does not put the core operations at risk. All suppliers within the ecosystem are expected to play their part and embrace the processes, tools and technologies that their customers have implemented to build a resilient supply chain.

Suppliers are increasingly adopting a demand-driven planning of their assets and resources to reduce costs and optimize operational efficiency. Part of the cost savings are passed on to buyers, but this also creates supply chain risks for them that need to be managed jointly with the supplier.

Large global suppliers are entering into JVs and M&As with vendors that can provide them a solid footing for regional play.

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

Cartoning Machines procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with Cartoning Machines procurement strategy.

For example, It is important for category managers to track and measure supplier performance against a defined set of KPIs that are agreed upon by both parties during contract negotiation, including inventory accuracy, dock-to-stock, and on-time shipment. This is critical to ensure the optimal level of service. Suppliers' performance can also be linked to a part of their fee, which can be paid depending on the level of services rendered.

Buyers should negotiate to get the best add-on services from their suppliers, such as real-time tracking, route optimization, big data analytics to plan and forecast future requirements and Six Sigma practices to ensure the procurement of quality services.

Buyers need to discuss business goals and strategic imperatives with service providers to understand their mode of operation and establish control over important parameters of the supply chain.

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