Circuits Market Procurement Intelligence Report

Business practices within Circuits market are heavily influenced by changing trends across the category as well as within the broader Engineering Components market. Procurement costs for Circuits are highly impacted by an increase in the costs associated with the value chain of Circuits, such as logistics, labor cost and energy. Additionally, outdated assets are also increasing the cost for suppliers.

Regulatory guidance on data protection and increasing concern over cybersecurity have increased the costs for suppliers as they incur additional spend on compliance and security. These additional costs have a potential to drive marginal increase in prices across the key geographies.

Suppliers of Circuits are moving up the value chain - both organically as well as through M&As. Their portfolios are increasingly being diversified with the objective of offering integrated solutions that go beyond just Circuits. Even buyers are engaging vendors who can act as a one-stop solution provider across their geographic footprint. Such strategic engagements can help buyers with savings associated with economies of scale and management of a much smaller supplier base.

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

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Circuits category procurement. The report offers a succinct analysis of Circuits procurement best practices.

For example, Strong R&D focus is the sign of a supplier committed to enhancing the quality and cost proposition of its solutions. Buyers should collaborate with such suppliers for development of low-cost but highly efficiency products that can bring their OPEX down.

Buyers should engage with suppliers that have adopted a global delivery model as it reduces buyers' risk. In this model, any disaster/emergency at any operating facility of supplier will result in the work being transferred to a different facility, thereby ensuring continuity of the project and reduced risk for buyers. This model also provides buyers access to skilled labor from across the globe, thereby improving the quality of engineering products provided by the supplier.

Buyers should engage with suppliers that have recycling capability. Recycling capability of the suppliers will lower their production costs which will be passed on to buyers. Additionally, the recycling capability will contribute in furthering the sustainability goals of the buyers' organization.

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