Jerrycans Category Procurement Intelligence Report

The market for Warehousing and Storage and its sub-segments such as Jerrycans are at an interesting intersection. Businesses are focused on maintaining a lean inventory of raw materials, parts, components and finished goods. While it is a novel concept to keep the inventory costs in check, it also highly challenging to implement in a global sourcing context and requires a clock work like optimization of logistics and warehousing processes. Companies are moving to a completely digital supply chain footprint to reduce errors and risks associated with such strategies.

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

Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Jerrycans suppliers who will be forced to pass on a part of this increase to their buyers.

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

Jerrycans 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 Jerrycans procurement strategy.

For example, It is important that buyers assess the operating model of service providers to determine the best-fit case for their organizations. Buyers need to determine if services offered by the providers are comprehensive and involve adequate resource support and a well-defined customizable execution plan.

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 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.

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