Satellites Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Transportation Support Services as well as Satellites procurement trends are poised to change the business practices and procurement thumb rules. Even as technological prowess of suppliers is increasing and processes are routinely being digitalized, there is a growing concern around putting critical data and information in the hands of a third party. Buyers are making elaborate contracts that aim to prevent intentional or unintentional data leakage or theft.

Several macro level trends such as slowing economic growth, trade conflicts, rising wages and technological disruptions have put pressure on managers to reduce their spend on Satellites without affecting the performance.

Suppliers are no more just the experts in Satellites. Many are moving up the value chain and offering integrated services that go beyond just Satellites. This new business model helps buyers on multiple counts, such as fewer suppliers to manage, cost savings arising of volume buying and long-term strategic partnerships with a chosen few suppliers that maximize the ROI and allow for strategic optimization experiments.

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

Satellites 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 Satellites procurement strategy.

For example, Buyers need to employ robust should-cost models and total cost of ownership models to aid Satellites supplier selection and pricing negotiations.

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

Buyers should properly evaluate the effectiveness and sustainability of suppliers' safety process before onboarding them. Suppliers should be required to provide details data on workplace safety KPIs and accident statistics to complete their safety evaluation. This process can reduce accident related risks in the buyer's operations and reputational risks that arise from industrial accidents.

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