Automation and Instrumentation - Procurement Market Intelligence Report

Automation and Instrumentation - Procurement Market Intelligence Report

  • Published: Jun 2020
  • Pages: 120
  • SKU: IRCMSTR21568

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The report identifies General Electric Co., Siemens AG, and Honeywell International Inc. among the top most important suppliers for automation and instrumentation procurement. Suppliers have a moderate bargaining power in a market that is set to grow at 2.51%. Therefore the price of automation and instrumentation will increase by 2%-4% during the forecast period. 

Several strategic and tactical negotiation levers are explained in the report to help buyers achieve the best prices for automation and instrumentation. The report also aids buyers with relevant automation and instrumentation pricing levels, pros and cons of prevalent pricing models such as cost-plus pricing, milestone-based pricing, and time and material pricing and category management strategies and best practices to fulfill their category objectives.

Automation and Instrumentation Procurement: Strategies and Category Management

A targeted strategic approach to automation and instrumentation sourcing can unlock several opportunities for buyers. Still, we see that buyers have a pre-dominantly transaction-based approach towards the category and miss out on cost-saving opportunities in the absence of actionable intelligence on the automation and instrumentation procurement market.

Strategic Sourcing and Enablers

During our interactions with category managers, it is often cited that buyers have a moderate bargaining power in the automation and instrumentation market. Our sourcing experts believe that a holistic category management approach can help buyers further maximize the value on their automation and instrumentation procurement. The report explains key category management objectives that should form the base for automation and instrumentation sourcing strategy, including:

  • Category innovations
  • Cost savings
  • Adherence to regulatory nuances
  • Scalability of inputs
  • Reduction of TCO
  • Customer retention
  • Top-line growth
  • Supply base rationalization
  • Green initiatives
  • Demand forecasting and governance
  • Minimalization of ad hoc purchases 

In addition to identifying the strategic goals and initiatives for the category management, it is also important to create the necessary support structure to facilitate their implementation. The report identifies multiple enablers that can help maximize the efficiency of automation and instrumentation category management.

This report provides in-depth inputs on streamlining your automation and instrumentation category management practices. Request for a FREE sample for detailed answers on:

  • What should be my strategic sourcing objectives, activities, and enablers for automation and instrumentation category?
  • Which negotiation levers can I pull for cost-saving?
  • What are automation and instrumentation procurement best practices I should be promoting in my supply chain

Automation and Instrumentation Procurement: Top Suppliers

Leading global suppliers can assist buyers in realizing high-cost savings through their efforts on areas such as backward integration, reducing total ownership cost, conference participation, negotiate on pricing and contractual terms, reduction in ad-hoc spend, operations automation, quality management, supplier synergies, and managing inventory shrinkage. By collaborating with global suppliers, buyers can easily implement cost-saving and assure themselves of high-quality procurement of automation and instrumentation during diverse situations.

Key Suppliers and Supplier Management 

This report offers key advisory and intelligence to help buyers identify and shortlist the most suitable suppliers for their automation and instrumentation requirements. Some of the leading automation and instrumentation suppliers profiled extensively in this report include:

  • General Electric Co.
  • Siemens AG
  • Honeywell International Inc.
  • Emerson Electric Co.
  • ABB
  • Mitsubishi Electric Corp.
  • Schneider Electric
  • OMRON Corp.
  • Yokogawa Electric Corp.
  • Toshiba Corp.

Quality control measures, warranty, innovation and testing capabilities, and product range are some of the most critical parameters that buyers use to shortlist the suppliers in automation and instrumentation. Shortlisted suppliers must be carefully evaluated and scrutinized against business needs, technical specifications, operational requirements, security compliance, regulatory mandates, legal requirements, quality control, change management procedures, pricing models, penalty clauses, SLA nuances, acceptance criteria, and evaluation criteria and several other selection criteria described in detail by this report.

Request for a FREE sample for a complete understanding of automation and instrumentation supplier landscape:

  • Am I engaging with the right suppliers?
  • Which KPIs should I use to evaluate my incumbent suppliers?
  • Which supplier selection criteria are relevant for automation and instrumentation?
  • What are the automation and instrumentation category essentials in terms of SLAs and RFx?

Automation and Instrumentation Procurement: Pricing Insights

Suppliers in this market have moderate bargaining power owing to low pressure from substitutes and a moderate level of threat from new entrants. Therefore, it is extremely important to get the pricing and pricing model right. Buyers can benchmark their preferred pricing models for automation and instrumentation with the wider industry and identify the cost-saving potential. 

For example, cost-plus pricing, milestone-based pricing, and time and material pricing are the most widely adopted pricing models in the automation and instrumentation. Each pricing model offers optimum benefits and fitment in specific situations. Buyers are advised to identify the model that suits their operations in the best manner and link supplier performance to the pricing models.

Price Strategies and Benchmark

Additionally, it is crucial to keep track of current and future automation and instrumentation price trends to completely optimize the value of the purchase, both from current cash outflow as well as overall cost and benefit perspective. The automation and instrumentation report expects a change of 2%-4% during the forecast period. Price forecasts are beneficial in purchase planning, especially when supplemented by constant monitoring of price influencing factors described in the report.

Pricing insights presented in this report cover pricing benchmarks and the trends and strategies that can help optimize cost savings. Request for a FREE sample to access the definite purchasing guide on the automation and instrumentation that answers all your key questions on price trends and analysis:

  • Am I paying/getting the right prices? Is my automation and instrumentation TCO (total cost of ownership) favorable?
  • How is the price forecast expected to change? What is driving the current and future price changes?
  • Which pricing models offer the most rewarding opportunities?

Automation and Instrumentation Procurement: Spend Growth Analysis

The report provides a complete drill-down on global automation and instrumentation spend outlook at a global as well as regional level. Current spend scenario, growth outlook, incremental spend, and other key information is available individually for North America, South America, Europe, Middle East and Africa, and APAC.

Spend Growth and Demand Segmentation

The automation and instrumentation market will register an incremental spend of about $ 24 billion, growing at a CAGR of 2.51% during the five-year forecast period. Only a handful of regions will drive the majority of this growth. On the supply side, North America, South America, Europe, Middle East and Africa, and APAC will have the maximum influence owing to the supplier base.

The drivers and inhibitors that influence these global and regional outlooks are also elaborated in detail. Request for a FREE sample to access our in-depth growth decomposition analysis:

  • Is this growth cyclical?
  • When will the growth curve peak?
  • What is driving the growth (or lack of it) in individual geographies?
  • Which geographies hold the most rewarding opportunities for buyers and suppliers?
Read More Read Less

Category Management Enablers

Executive Summary

Market Insights

Suppliers Selection

Suppliers under Coverage

Category Pricing Insights

Cost-saving Opportunities

US Market Insights

Best Practices

Category scope

Appendix

Category Ecosystem

Category Management Strategy

Category Management Enablers

Suppliers Selection

Suppliers under Coverage

US Market Insights

Category scope

Appendix

Research Framework

SpendEdge presents a detailed picture of the market 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.

INFORMATION SOURCES

Primary sources

  • Procurement heads
  • Category managers
  • Sourcing consortium professionals
  • Industry experts and thought leaders
  • Procurement managers
  • Category heads of suppliers
  • Client account heads/managers
  • Client and industry consultants

Secondary sources

  • Industry journals and reports
  • Periodicals and new articles
  • Category webinars
  • Internal categiry playbooks
  • Industry and government websites on regulations and compliance
  • Internal databases
  • Industry blogs/thought leader briefings

DATA ANALYSIS

Automation and Instrumentation - Procurement Market Intelligence Report
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The automation and instrumentation procurement market will grow at a CAGR of about 2.51% during 2020-2024.
During 2020-2024, the automation and instrumentation procurement market will register an incremental spend of about $ 24 billion.
General Electric Co., Siemens AG, Honeywell International Inc., Emerson Electric Co., ABB, Mitsubishi Electric Corp., Schneider Electric, OMRON Corp., Yokogawa Electric Corp., and Toshiba Corp. are some of the prominent suppliers in automation and instrumentation market.
Cost-plus pricing, milestone-based pricing, and time and material pricing are the widely adopted pricing models in automation and instrumentation procurement.
During the forecast period, the price for automation and instrumentation procurement will increase by 2%-4%.