Manufacturing Project And Product Support Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Operation of Industrial Facilities as well as Manufacturing Project And Product Support procurement trends are poised to change the business practices and procurement thumb rules. The category has historically lagged in tech adoption due to inadequate skillsets of majority of workforce and the perennial requirement to reduce facilities related cost. Therefore, suppliers who have demonstrated technological prowess to achieve efficiencies are being preferred over traditional vendors.

Several macro level trends such as slowing economic growth, trade conflicts, rising wages and technological disruptions have put pressure on managers to reduce their spend on Manufacturing Project And Product Support without affecting the performance.

Suppliers have historically gained handsome margin-on-margin by sub-contracting a part of their work to another contractor. However, Buyers are now delving deep into the business models of suppliers and negotiating hard to avoid further sub-contracting. In cases where it is imperative to sub-contract, category managers are employing should-cost models to keep supplier margins on sub-contracting to the minimal.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

The report discusses in detail the best practices that have served well the category managers responsible for Manufacturing Project And Product Support procurement.

For example, Category managers must explore opportunities to integrate planning and management activities of categories using analytics, to gain better control over category spend. This will also allow them to consolidate their supply base easily, as well as to segment suppliers based on requirements and spend on each supplier.

Buyers require industry-specific services to effectively operate their production facilities. Thus, they should opt for service providers that can offer customization and bring in years of experience in serving the needs of that industry.

Buyers should set a baseline against which the performance of suppliers can be benchmarked along with setting measurable/quantifiable KPIs. Defined KPIs provides suppliers with clarity on the scope. Besides setting standards for operations, pricing, and performance, KPIs must provide tangible goals in terms of the quality of solutions.

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