Pole Line Equipment Market Procurement Intelligence Report

The market for Engineering Components and its sub-segments such as Pole Line Equipment are at an interesting intersection. Procurement costs for Pole Line Equipment are highly impacted by an increase in the costs associated with the value chain of Pole Line Equipment, such as logistics, labor cost and energy. Additionally, outdated assets are also increasing the cost for suppliers.

Suppliers of Pole Line Equipment are moving up the value chain - both organically as well as through M&As. Their portfolios are increasingly being diversified with the objective of offering integrated solutions that go beyond just Pole Line Equipment. Even buyers are engaging vendors who can act as a one-stop solution provider across their geographic footprint. Such strategic engagements can help buyers with savings associated with economies of scale and management of a much smaller supplier base.

Markets across the globe are reeling under shortage of professionals and workforce that have relevant skills and training. Minimum wages and stringent regulations are compelling suppliers to increase their employee expenses which are expected to have an inflationary impact on buyers' procurement cost.

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

Pole Line Equipment 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 Pole Line Equipment procurement strategy.

For example, Buyers should engage with suppliers that have adopted a global delivery model as it reduces buyers' risk. In this model, any disaster/emergency at any operating facility of supplier will result in the work being transferred to a different facility, thereby ensuring continuity of the project and reduced risk for buyers. This model also provides buyers access to skilled labor from across the globe, thereby improving the quality of engineering products provided by the supplier.

Buyers must have a clear understanding of the subcontracting policies, if any, of Pole Line Equipment suppliers. Factors such as cost incurred, service quality, adherence to timelines, and regulatory compliance of subcontractors employed by suppliers should be carefully assessed prior to engagement.

Strong R&D focus is the sign of a supplier committed to enhancing the quality and cost proposition of its solutions. Buyers should collaborate with such suppliers for development of low-cost but highly efficiency products that can bring their OPEX down.

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