Heavy Mining Equipment Market Procurement Intelligence Report

A changing ecosystem within the Engineering Products and Equipment market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Heavy Mining Equipment. Several structural changes including M&As and vertical integration efforts of suppliers are characterizing the broader market. Such strategic developments can erode the strength of previously established supplier relationships due to changed realities in the supplier's ecosystem. At the same time, buyers may also find opportunities to onboard new suppliers with a wider range of offerings or better contract terms for .

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

Suppliers of Heavy Mining Equipment 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 Heavy Mining Equipment. 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.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Heavy Mining Equipment. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers need to evaluate the in-depth expertise of suppliers in the Heavy Mining Equipment 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.

Buyers must have a clear understanding of the subcontracting policies, if any, of Heavy Mining Equipment 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 assess the level of adoption of the latest technologies by suppliers to assess cost-saving opportunities and quality that can be provided by the latter. For instance, the adoption of technologies such as cloud computing will enable suppliers to reduce their internal computing hardware requirements for operations such as CAD and CAM. This can, in turn, enable them to reduce their operating costs, thereby suppliers can offer products at lower rates to buyers.

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