Purified Water & Cooling Market Procurement Intelligence Report

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 Additionally, outdated assets are also increasing the cost for suppliers.

Several structural changes including M&As and vertical integration efforts of suppliers are characterizing the broader market. Such strategic developments can erode the strength of previously established supplier relationships due to changed realities in the supplier's ecosystem. At the same time, buyers may also find opportunities to onboard new suppliers with a wider range of offerings or better contract terms for .

Regulatory guidance on data protection and increasing concern over cybersecurity have increased the costs for suppliers as they incur additional spend on compliance and security. These additional costs have a potential to drive marginal increase in prices across the key geographies.

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

Purified Water & Cooling 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 Purified Water & Cooling procurement strategy.

For example, Competitive bidding as a cost optimization tool is extremely potent but should be carefully deployed only when there is no significant differentiation among Purified Water & Cooling suppliers.

Buyers should engage with suppliers that have recycling capability. Recycling capability of the suppliers will lower their production costs which will be passed on to buyers. Additionally, the recycling capability will contribute in furthering the sustainability goals of the buyers' organization.

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.

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