Planogram Services Market Procurement Intelligence Report

The market for Promotion and its sub-segments such as Planogram Services are at an interesting intersection. Rising cost of workforce possessing core skill sets is expected to offset some of the cost savings that suppliers are expecting through implementation of lean and technology-based operations.

An intense competition in the supply market owing to new entrants is expected to provide more procurement options to buyers for Planogram Services and offer significant negotiation leverage.

In the broader industry, automated tools and advanced technology is making inroads and even replacing some of the non-core workforce of suppliers. As a result, overall cost structure of suppliers has become more favorable across the industry and buyers of Planogram Services can expect to benefit from lower costs of suppliers once they break even with their investments in technology.

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

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Planogram Services procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, It is customary for service provider to charge buyers on a project basis. The project costs are often based on payroll costs incurred by service providers on the various levels of personnel involved in the project. In a bid to derive higher profits, service providers may allocate more senior staff than required. Therefore, buyers must scrutinize the staffing needs of the project and limit the presence of senior staff to not more than 30% of the total allocated staff. This, in turn, providers buyers' advantages such as enhanced cost savings, streamlined execution, and faster delivery time.

Buyers should engage with service providers that can consolidate multiple marketing, advertising and communications disciplines such as SEO, SEM, social media management, and traditional advertising. Such consolidation increases cost savings, convenience, and facilitates supplier performance benchmarking.

Service providers often hire subcontractors to assist in certain aspects of a project. Buyers must ensure that subcontractors are bound by the same terms and conditions that main service providers adhere to. Buyers should also ensure that the project budget does not exceed while negotiating with subcontractors.

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