Automobile & Light Truck Tires | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to Automobile & Light Truck Tires Procurement

Overview

Several macro changes in the dynamics of overall Vehicle Conversion as well as Automobile & Light Truck Tires procurement trends are poised to change the business practices and procurement thumb rules. 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.

Telematics has found excellent adoption rates the world over and its adoption is only expected to grow more. This is creating challenges for category managers in aligning the specifications to the use of preferred telematics solutions as well as extending procurement activities to this new but still less understood category of products and services.

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

Automobile & Light Truck Tires Procurement Best Practices

The report discusses in detail the best practices that have served well the category managers responsible for Automobile & Light Truck Tires procurement.

For example, 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.

The adoption of advanced technologies such as telematics and IVMS enables buyers to track vehicles, increase fuel efficiency, reduce carbon emissions, and increase cost savings. These technologies ensure buyers safety and increase the efficiency of their fleet.

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.

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Risks in Automobile & Light Truck Tires procurement

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

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
Contract-related risks where unfavorable credit terms may severly penalize buyers for delayed payments or entitle the supplier to demand pre-payments or shorten the payment terms are not very common in the category but they do exist in certain situations where buyers' liquidity or financial health is in question
When requirements of the buyers are not absolutely clear or usage patterns are not stable or predictable, suppliers often build in \"cost buffers\" for unforeseen risks due to a lack of complete understanding on buyer's requirements. This increases the risk of overspending on Automobile & Light Truck Tires

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Who should read this report

The report is intended to serve as a one-stop reference guide for Automobile & Light Truck Tires 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 “Automobile & Light Truck Tires: Procurement Report 101” as well as for category experts actively tracking the global Automobile & Light Truck Tires procurement market.

You may have just initiated your research to design a winning Automobile & Light Truck Tires 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 Automobile & Light Truck Tires 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 Automobile & Light Truck Tires 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 Automobile & Light Truck Tires market?
What is the correct price to pay for Automobile & Light Truck Tires? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Automobile & Light Truck Tires Suppliers Market?
Who are the top Automobile & Light Truck Tires suppliers? What are their cost structures?
Which negotiation levers can reduce Automobile & Light Truck Tires procurement cost ?
What are supplier margins in Automobile & Light Truck Tires market?
What are the best practices for Automobile & Light Truck Tires procurement and what are the potential risks?

SpendEdge Insights has helped procurement professionals and sourcing teams manage multiple spend areas and achieve more than $2 billion in savings. Activate your free account today!

Automobile & Light Truck Tires Category Insights: What is inside

The Automobile & Light Truck Tires 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 Automobile & Light Truck Tires procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Automobile & Light Truck Tires. 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 Automobile & Light Truck Tires 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 Automobile & Light Truck Tires 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 Automobile & Light Truck Tires 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.