Coquina Market Procurement Intelligence Report

The market for Construction Supplies and its sub-segments such as Coquina are at an interesting intersection. Suppliers across the value chain are increasing their investments in technologies and incorporating systems integrated with IoT, AI, Big data, and data analytics to generate efficiencies and better serve the evolving demand patterns of buyers. This is expected to impact the cost structure of suppliers in the short-term but will help bring down the costs in longer run as suppliers recover the costs of current investment cycles.

Fluctuation in prices of construction materials has made it difficult for project contractors to maintain a steady cost projection on construction projects. Also, the risks associated with project cost overruns are contributing to project delays and abandonment. Procurement functions are more careful while drawing up supplier contracts and insulating their projects from price uncertainties to the extent possible on negotiation tables.

Periods of macroeconomic uncertainty and increasing stringency of immigration laws are key contributors to the workforce shortage in the market. Domestic workers in developed countries often choose to pursue higher education and less cyclical employment opportunities while foreign workers return to their home countries due to tough immigration laws and economic conditions. Consequently, suppliers have had to increase labor wages to attract skilled and unskilled labor, which has increased their costs and forced them to increase their pricing.

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

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 Coquina category procurement. The report offers a succinct analysis of Coquina procurement best practices.

For example, Service providers may outsource certain aspects of the project if they lack the required expertise or to expedite the project progress. If the subcontractor is not covered by a reliable liability insurance or does not abide by the same terms and conditions that were laid down for the main contractors, then it can hinder the main contractor's ability to perform its services. It may also entangle the buyers in legal complications and negative publicity.

Buyers must have a clear understanding of the sub-contracting policies of suppliers. Suppliers must be evaluated on factors such as price, quality, and regulatory compliance of their subcontractors before they are selected.

Large firms should prefer to engage in long-term contracts with a preferred set of suppliers that can provide integrated solutions for all scales of projects (small, mid-sized, or large). Partnerships with preferred service providers lead to category-level innovations and enable buyers to avail customized services.

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