Chain Conveyors Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Warehousing and Storage as well as Chain Conveyors procurement trends are poised to change the business practices and procurement thumb rules. Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Chain Conveyors suppliers who will be forced to pass on a part of this increase to their buyers.

Businesses are focused on maintaining a lean inventory of raw materials, parts, components and finished goods. While it is a novel concept to keep the inventory costs in check, it also highly challenging to implement in a global sourcing context and requires a clock work like optimization of logistics and warehousing processes. Companies are moving to a completely digital supply chain footprint to reduce errors and risks associated with such strategies.

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.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Chain Conveyors. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers prefer to engage with service providers that offer robust technological systems and leverage Internet-based systems to reduce cost and simplify visibility across the supply chain. Buyers should also assess the integration capabilities of software platforms offered by service providers to ensure that there are no additional costs incurred for software implementation.

Buyers must track suppliers' quality management systems to ensure that the products are stored in a hygienic environment and have almost zero probability of occurrence of damages. This is particularly critical for buyers in industries such as food and beverages and pharmaceutical.

Buyers need to assess the level of automation provided and time required to obtain process efficiency, apart from checking if suppliers have the correct documentation for as-is processes and to-be processes to avoid any conflicts in implementation.

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