Auto Body Services | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to Auto Body Services Procurement

Overview

Fleet Management market around the world is undergoing rapid transitions that have a massive potential to influence the way companies strategize for Auto Body Services procurement and the cost they have to incur. Increased availability of options both in terms of suppliers and new propositions from suppliers is also influencing the procurement trends for Auto Body Services and improving leverage for buyers in some cases.

Traditionally procurement functions had a greater say in deciding the specifics of orders. However, recent trends indicate that all departments of a company, even drivers are included in the decision making and feedback loop. This creates opportunities to benefit for cross learnings but also increases the co-ordination and conflict management tasks of category managers.

Many suppliers are reeling under pressure from a lack of sufficiently trained manpower in enough numbers.

Auto Body Services Procurement Best Practices

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Auto Body Services category procurement. The report offers a succinct analysis of Auto Body Services procurement best practices.

For example, Instead of customarily fixing the contract length to one or two years, buyers should determine the contract length based on market conditions and their likely impact on cost in future.

Performing regular preventative maintenance for the assets will help buyers achieve productivity and profitability. Moreover, performing preventive maintenance from time-to-time will help buyers sustain a highly operational fleet, which will reduce operation-related costs for buyers/service providers. Ineffective preventive maintenance will drive the additional cost incurred by buyers and increase in downtime of the fleets.

Vehicle replacement cycles is a mechanism used to calculate maintenance and depreciation-related costs associated with a vehicle. Service providers perform such calculations on behalf of buyers. Vehicle replacement cycles enable end-users to follow safety measures and minimize operating costs. These are calculated after a certain mileage or specific years of use. Furthermore, buyers should engage with service providers that offer analysis with respect to fuel consumed as well as provide maintenance and repair services.

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Risks in Auto Body Services procurement

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

Pricing terms in the contract could prove to be inadequate to safeguard the buyer from impact of a sudden increase in supplier's cost, often arising from a lack of clarity on scope of products or services to be delivered
Improper maintenance of vehicles increases operational costs and it is done on regular basis. Continuous exposure of vehicles to heat, air, and moisture leads to oil degradation resulting in improper functioning of vehicles
Lack of efficient training to drivers can cause accidents and traffic violations, which in turn can cause severe injuries and fatalities

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Who should read this report

The report is intended to serve as a one-stop reference guide for Auto Body Services procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “Auto Body Services: Procurement Report 101” as well as for category experts actively tracking the global Auto Body Services procurement market.

You may have just initiated your research to design a winning Auto Body Services procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on Auto Body Services procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The Auto Body Services procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the Auto Body Services market?
What is the correct price to pay for Auto Body Services? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Auto Body Services Suppliers Market?
Who are the top Auto Body Services suppliers? What are their cost structures?
Which negotiation levers can reduce Auto Body Services procurement cost ?
What are supplier margins in Auto Body Services market?
What are the best practices for Auto Body Services procurement and what are the potential risks?

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Auto Body Services Category Insights: What is inside

The Auto Body Services market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on Auto Body Services procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Auto Body Services. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on Auto Body Services market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the Auto Body Services category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of Auto Body Services procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.