Irrigation Systems & Equipment | Suppliers | Pricing Trends , Best Practices

Strategic Sourcing Guide to Irrigation Systems & Equipment Procurement

Overview

Business practices within Irrigation Systems & Equipment market are heavily influenced by changing trends across the category as well as within the broader Environmental Goods market. Many suppliers are trying to enhance the efficiencies and productivity within their operations through investment in new technologies and an overhaul of processes. Some of these initiatives are likely to influence their cost structure adversely till the time they recover their investments. However, a successful implementation of these programs can benefit them with a better cost proposition in the longer run.

The global industry has seen a gradual increase in labor cost due to several factors, such as shortage of a trained workforce, increase in minimum wages, regulations around employee benefits and declining appeal for what have been traditionally called unskilled jobs. As the employee expenses increase, suppliers are compelled to pass some of this increase to their buyers by charging higher prices.

Regulatory changes are taking place more frequently and the changes impact multiple functions within an organization. Alignment of procurement practices and decisions with all the new regulations has now become highly challenging, especially when category managers are responsible to centrally procure for multiple regions with different regulations.

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

Irrigation Systems & Equipment Procurement Best Practices

The report discusses in detail the best practices that have served well the category managers responsible for Irrigation Systems & Equipment procurement.

For example, Buyers should proactively manage relations with Irrigation Systems & Equipment suppliers and have pre-determined intervention criteria for onboarding or replacing a supplier, changing specifications or terms and conditions.

While competitive bidding as a cost optimization tool is extremely potent but should be carefully deployed only when there is no significant differentiation among Irrigation Systems & Equipment suppliers.

Investing in benchmarking studies helps category managers in enhancing their knowledge on market pricing of products and costing of maintenance and support services). This arms them with better ammunitions for negotiation.

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Risks in Irrigation Systems & Equipment procurement

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

Rise in the prices of key raw materials significantly increases the manufacturing cost within the category. Additionally, adverse weather conditions also impact the cost of certain raw materials negatively. Increased raw material cost in a supplier's hands can lead to an almost proportionate rise in the overall category costs
Contract-related risks where unfavorable credit terms may severly penalize buyers for delayed payments or entitle the supplier to demand pre-payments or shorten the payment terms are not very common in the category but they do exist in certain situations where buyers' liquidity or financial health is in question
The minimal infrastructure development for logistics in several parts of the world portrays a challenge for suppliers to maintain the standardization of logistics of materials

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Who should read this report

The report is intended to serve as a one-stop reference guide for Irrigation Systems & Equipment procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “Irrigation Systems & Equipment: Procurement Report 101” as well as for category experts actively tracking the global Irrigation Systems & Equipment procurement market.

You may have just initiated your research to design a winning Irrigation Systems & Equipment procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on Irrigation Systems & Equipment procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The Irrigation Systems & Equipment procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the Irrigation Systems & Equipment market?
What is the correct price to pay for Irrigation Systems & Equipment? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Irrigation Systems & Equipment Suppliers Market?
Who are the top Irrigation Systems & Equipment suppliers? What are their cost structures?
Which negotiation levers can reduce Irrigation Systems & Equipment procurement cost ?
What are supplier margins in Irrigation Systems & Equipment market?
What are the best practices for Irrigation Systems & Equipment procurement and what are the potential risks?

SpendEdge Insights has helped procurement professionals and sourcing teams manage multiple spend areas and achieve more than $2 billion in savings. Activate your free account today!

Irrigation Systems & Equipment Category Insights: What is inside

The Irrigation Systems & Equipment market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on Irrigation Systems & Equipment procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Irrigation Systems & Equipment. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on Irrigation Systems & Equipment market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the Irrigation Systems & Equipment category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of Irrigation Systems & Equipment procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.