Aviation Procurement | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to Aviation Procurement

Overview

A changing ecosystem within the Transportation Support Services market also affects the Aviation market procurement strategies, processes, cost dynamics and supplier attractiveness. Historically, suppliers have sub-contracted a fair portion of their work and earned attractive margins, thereby increasing the cost of buyers. Buyers are now scrutinizing the service models of suppliers in much more depth to identify potential for sub-contracting and negotiating hard to avoid cost escalation on account of sub-contracting by employing should-cost models.

Several macro level trends such as slowing economic growth, trade conflicts, rising wages and technological disruptions have put pressure on managers to reduce their spend on Aviation without affecting the performance.

Suppliers are no more just the experts in Aviation. Many are moving up the value chain and offering integrated services that go beyond just Aviation. This new business model helps buyers on multiple counts, such as fewer suppliers to manage, cost savings arising of volume buying and long-term strategic partnerships with a chosen few suppliers that maximize the ROI and allow for strategic optimization experiments.

Aviation Market Procurement Best Practices

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Aviation. To help quick decision making, this report advises on several Aviation market procurement best practices that have worked well for category managers.

For example, Competitive bidding as a cost optimization tool is extremely potent but should be carefully deployed only when there is no significant differentiation among Aviation suppliers.

Several macro level trends such as slowing economic growth, trade conflicts, rising wages and technological disruptions have put pressure on managers to reduce their spend on Aviation without affecting the performance.

Suppliers are no more just the experts in Aviation. Many are moving up the value chain and offering integrated services that go beyond just Aviation. This new business model helps buyers on multiple counts, such as fewer suppliers to manage, cost savings arising of volume buying and long-term strategic partnerships with a chosen few suppliers that maximize the ROI and allow for strategic optimization experiments.

Activate your free account to gain easy access to cutting edge research and insights on consumers, emerging price trends, global and regional suppliers.

Risks in Aviation procurement

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

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
Procurement without consulting the actual users of Aviation may result in a mismatch in expectations of the buyer's internal stakeholders versus the actual contract executed
The industry is directly linked to economic and political environments. Changes in government policies and economic instability negatively impacts the industry, thereby posing challenges to the suppliers. For instance, changes in tax regulations can affect profit margins of suppliers, thereby hindering their capabilities to offer improved services within the set timelines

For detailed insights and complete access to our report library, activate your free account!

Who should read Aviation market procurement intelligence report

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

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

SpendEdge Insights Subscription

Unlock SpendEdge's comprehensive procurement report collection with ease through our procurement platform.

Subscribe Now

Key questions answered by Aviation procurement intelligence 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 Aviation market procurement 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 Aviation procurement intelligence 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 Aviation market?
What is the correct price to pay for Aviation? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Aviation Suppliers Market?
Who are the top Aviation suppliers? What are their cost structures?
Which negotiation levers and Aviation market procurement strategies can reduce procurement cost?
What are supplier margins in Aviation market?
What are the Aviation market procurement best practices 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!

Aviation Procurement Intelligence Report: What is inside

The Aviation procurement intelligence 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, Aviation market 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 Aviation procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Aviation. 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 Aviation 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 Aviation market procurement best practices and strategies to manage the 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?”

❮ ❯

Category Research Framework

SpendEdge presents a detailed picture of Aviation 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 carried out with Aviation market procurement intelligence tools.