Axial Compressors Market Procurement Intelligence Report

The market for Engineering Components and its sub-segments such as Axial Compressors are at an interesting intersection. Customers are expecting service and experience levels which are at par with what ecommerce and consumer sectors of today offer. Moreover, competition keeps intensifying and demand and supply dynamics keep shifting.

Procurement costs for Axial Compressors are highly impacted by an increase in the costs associated with the value chain of Axial Compressors, such as logistics, labor cost and energy. Additionally, outdated assets are also increasing the cost for suppliers.

Volatility in the prices of key inputs is creating multiple issues that impact procurement within Axial Compressors category such as benchmarking and budgeting of the procurement costs.

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

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 Axial Compressors. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers should assess the level of adoption of the latest technologies by suppliers to assess cost-saving opportunities and quality that can be provided by the latter. For instance, the adoption of technologies such as cloud computing will enable suppliers to reduce their internal computing hardware requirements for operations such as CAD and CAM. This can, in turn, enable them to reduce their operating costs, thereby suppliers can offer products at lower rates to buyers.

Buyers need to evaluate the in-depth expertise of suppliers in the Axial Compressors industry. This can be assessed by considering factors such as the years of experience, number of resources that have multi-year experience of working in the same industry and at least 3 to 5 credentials for the supplier.

Buyers should engage with suppliers that have adopted a global delivery model as it reduces buyers' risk. In this model, any disaster/emergency at any operating facility of supplier will result in the work being transferred to a different facility, thereby ensuring continuity of the project and reduced risk for buyers. This model also provides buyers access to skilled labor from across the globe, thereby improving the quality of engineering products provided by the supplier.

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