Oil & Gas Pipe Coating Services Category Procurement Intelligence Report

Several macro changes in the dynamics of overall Warehousing and Storage as well as Oil & Gas Pipe Coating Services procurement trends are poised to change the business practices and procurement thumb rules. Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Oil & Gas Pipe Coating Services suppliers who will be forced to pass on a part of this increase to their buyers.

Sustainability has emerged as a pivotal theme for procurement decisions related to supply chain. Companies are expecting their suppliers to internalize globally accepted sustainability practices and demonstrate a solid history of putting in practice similar principles. It is worth noting that practices of sustainability are not limited to only environmental impact but has taken a greater meaning of practices that can reduce the overall cost of operations in the long term.

Managing the logistics risks and building a resilient supply chain has taken the centerstage among corporate priorities. Companies are investing heavily to be able to detect disruptions in time and respond in a manner which does not put the core operations at risk. All suppliers within the ecosystem are expected to play their part and embrace the processes, tools and technologies that their customers have implemented to build a resilient supply chain.

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

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 Oil & Gas Pipe Coating Services. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

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 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.

Buyers should enter in long-term partnerships and collaborative relationships with service providers to benefit from economies of scale and reduced cost. Long-term contracts are established to avoid renewal costs and avoid time spent on renegotiation.

Oil & Gas Pipe Coating Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Oil & Gas Pipe Coating Services procurement. Some examples include: