Tanks & Cylinders Category Procurement Intelligence Report

Several macro changes in the dynamics of overall Warehousing and Storage as well as Tanks & Cylinders procurement trends are poised to change the business practices and procurement thumb rules. Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Tanks & Cylinders suppliers who will be forced to pass on a part of this increase to their buyers.

Service providers have begun to use advanced technologies and tools such as loT, predictive analysis and big data for optimal asset utilization, geofencing, warehouse management, and smart inventory management. The efficiencies gained by using new technology and improvement in customer service capabilities are significant. More and more suppliers are moving towards adopting these technologies to realize significant efficiency gains in the longer run, however, it may also increase their OPEX in the short run.

Managing the logistics risks and building a resilient supply chain has taken the centerstage among corporate priorities. Companies are investing heavily to be able to detect disruptions in time and respond in a manner which does not put the core operations at risk. All suppliers within the ecosystem are expected to play their part and embrace the processes, tools and technologies that their customers have implemented to build a resilient supply chain.

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

Tanks & Cylinders 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 Tanks & Cylinders procurement strategy.

For example, It is important for category managers to track and measure supplier performance against a defined set of KPIs that are agreed upon by both parties during contract negotiation, including inventory accuracy, dock-to-stock, and on-time shipment. This is critical to ensure the optimal level of service. Suppliers' performance can also be linked to a part of their fee, which can be paid depending on the level of services rendered.

Buyers need to discuss business goals and strategic imperatives with service providers to understand their mode of operation and establish control over important parameters of the supply chain.

Buyers should assess service providers' capability of predicting the weather, traffic, and other real-time information, which might affect shipments that are in transit or in its delivery times.

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