Transceivers Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Engineering Components as well as Transceivers procurement trends are poised to change the business practices and procurement thumb rules. 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.

Volatility in the prices of key inputs is creating multiple issues that impact procurement within Transceivers category such as benchmarking and budgeting of the procurement costs.

Suppliers of Transceivers 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 Transceivers. 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.

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

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Transceivers procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Buyers should engage with suppliers that repurchase used products at fair market value. This assists buyers to dispose of used products in a convenient manner. Also, during such repurchases, suppliers provide credits to buyers for future purchases. This reduces overall procurement costs for buyers.

Buyers need to evaluate the in-depth expertise of suppliers in the Transceivers industry. This can be assessed by considering factors such as the years of experience, number of resources that have multi-year experience of working in the same industry and at least 3 to 5 credentials for the supplier.

Buyers must have a clear understanding of the subcontracting policies, if any, of Transceivers 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.

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