Circuit Protection Market Procurement Intelligence Report

The market for Engineering Components and its sub-segments such as Circuit Protection are at an interesting intersection. Volatility in the prices of key inputs is creating multiple issues that impact procurement within Circuit Protection category such as benchmarking and budgeting of the procurement costs.

Customers are expecting service and experience levels which are at par with what ecommerce and consumer sectors of today offer. Moreover, competition keeps intensifying and demand and supply dynamics keep shifting.

Markets across the globe are reeling under shortage of professionals and workforce that have relevant skills and training. Minimum wages and stringent regulations are compelling suppliers to increase their employee expenses which are expected to have an inflationary impact on buyers' procurement cost.

Trends like these and many others discussed in this report are necessitating a relook at the way Circuit Protection is procured and the procurement cost saving opportunities that exist.

Circuit Protection 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 Circuit Protection procurement strategy.

For example, Buyers need to evaluate the in-depth expertise of suppliers in the Circuit Protection industry. This can be assessed by considering factors such as the years of experience, number of resources that have multi-year experience of working in the same industry and at least 3 to 5 credentials for the supplier.

Buyers should engage with suppliers that repurchase used products at fair market value. This assists buyers to dispose of used products in a convenient manner. Also, during such repurchases, suppliers provide credits to buyers for future purchases. This reduces overall procurement costs for buyers.

Buyers should invest in benchmarking studies that help category managers to improve their knowledge on market pricing or billing rates of service providers. This helps them to not only save costs but also increase their negotiation power.

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