Cutter Market Procurement Intelligence Report

Business practices within Cutter market are heavily influenced by changing trends across the category as well as within the broader Engineering Products and Equipment market. 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.

Volatility in the prices of key inputs is creating multiple issues that impact procurement within Cutter category such as benchmarking and budgeting of the procurement costs.

Technology is improving productivity and creating fresh demand. Convergence of data science, automation tools, 3D printing, robotics, AI and big data has opened up multiple possibilities to better serve customers at a lower operational cost.

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

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Cutter procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, 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.

Buyers must have a clear understanding of the subcontracting policies, if any, of Cutter suppliers. Factors such as cost incurred, service quality, adherence to timelines, and regulatory compliance of subcontractors employed by suppliers should be carefully assessed prior to engagement.

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.

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