Controllers Market Procurement Intelligence Report

Business practices within Controllers market are heavily influenced by changing trends across the category as well as within the broader Engineering Components market. Suppliers of Controllers 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 Controllers. 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.

Suppliers are continuously taking efforts to improve efficiencies and productivity and deploying processes and technologies. Some of these investments are likely to increase their costs in the shorter term, but learnings from other sectors keep the suppliers optimistic about a lean cost structure in the longer run.

Procurement costs for Controllers are highly impacted by an increase in the costs associated with the value chain of Controllers, such as logistics, labor cost and energy. Additionally, outdated assets are also increasing the cost for suppliers.

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

Controllers 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 Controllers procurement strategy.

For example, Buyers need to evaluate the in-depth expertise of suppliers in the Controllers 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.

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 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.

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