Water Well Drilling Services Category Procurement Intelligence Report

The market for Operation of Water Supplies and Distribution and its sub-segments such as Water Well Drilling Services are at an interesting intersection. Customer expectations of service quality has transformed in line with the customer experience provided within consumer and online sectors. Suppliers are striving to provide not only best quality but best-in-class experience.

Globalization has opened new markets for suppliers. Water Well Drilling Services market was historically a localized industry, but many geographies have seen introduction of new, foreign players who brought with them a new set of business practices and value propositions. Influx of this new competition has forced the traditional local suppliers to innovate and enhance their offerings to match the new benchmarks.

Supplier evaluation and performance management is now being driven by select KPIs that serve as hard evidence to support cost reduction. Suppliers of Water Well Drilling Services are developing targeted KPI matrix that help with actionable data on their performance and cost savings they achieved for the customer.

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

Water Well Drilling Services 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 Water Well Drilling Services procurement strategy.

For example, It is important for category managers to track and measure suppliers' performance against a defined set of KPIs (agreed to by both parties during contract negotiation). The result of suppliers' performance can be directly linked to the quality of support provided.

Engage suppliers that have adopted a high degree of automation in their business model. Automation of supplier's operations can offer benefits such as decrease in operational costs, reduction in the need for manual labor, lower chances of operational errors and optimized use of space.

There is a shift in focus toward minimizing emissions and energy usage to achieve sustainability goals. Buyers should monitor and evaluate the energy consumption of suppliers' operations before procurement. This also helps adherence with standards mandated by various national and international regulatory authorities.

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