Power Adapters & Inverters Market Procurement Intelligence Report

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 Additionally, outdated assets are also increasing the cost for suppliers.

Suppliers are continuously taking efforts to improve efficiencies and productivity and deploying processes and technologies. Some of these investments are likely to increase their costs in the shorter term, but learnings from other sectors keep the suppliers optimistic about a lean cost structure in the longer run.

Suppliers are under an enhanced pressure to offer greater quality, options that suit unique requirements and overall experience of the customer stakeholders involved.

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

Power Adapters & Inverters 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 Power Adapters & Inverters procurement strategy.

For example, Buyers must have a clear understanding of the subcontracting policies, if any, of Power Adapters & Inverters 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.

Competitive bidding as a cost optimization tool is extremely potent but should be carefully deployed only when there is no significant differentiation among Power Adapters & Inverters suppliers.

Buyers should assess the level of adoption of the latest technologies by suppliers to assess cost-saving opportunities and quality that can be provided by the latter. For instance, the adoption of technologies such as cloud computing will enable suppliers to reduce their internal computing hardware requirements for operations such as CAD and CAM. This can, in turn, enable them to reduce their operating costs, thereby suppliers can offer products at lower rates to buyers.

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