Drum Handling Equipment Category Procurement Intelligence Report

Business practices within Drum Handling Equipment market are heavily influenced by changing trends across the category as well as within the broader Warehousing and Storage market. Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Drum Handling Equipment suppliers who will be forced to pass on a part of this increase to their buyers.

Large global suppliers are entering into JVs and M&As with vendors that can provide them a solid footing for regional play.

Suppliers are increasingly adopting a demand-driven planning of their assets and resources to reduce costs and optimize operational efficiency. Part of the cost savings are passed on to buyers, but this also creates supply chain risks for them that need to be managed jointly with the supplier.

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

Drum Handling Equipment 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 Drum Handling Equipment procurement strategy.

For example, It is important for category managers to track and measure supplier performance against a defined set of KPIs that are agreed upon by both parties during contract negotiation, including inventory accuracy, dock-to-stock, and on-time shipment. This is critical to ensure the optimal level of service. Suppliers' performance can also be linked to a part of their fee, which can be paid depending on the level of services rendered.

Buyers prefer to engage with service providers that offer robust technological systems and leverage Internet-based systems to reduce cost and simplify visibility across the supply chain. Buyers should also assess the integration capabilities of software platforms offered by service providers to ensure that there are no additional costs incurred for software implementation.

Buyers must track suppliers' quality management systems to ensure that the products are stored in a hygienic environment and have almost zero probability of occurrence of damages. This is particularly critical for buyers in industries such as food and beverages and pharmaceutical.

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