General Ferrosilicon Market Procurement Intelligence Report

A changing ecosystem within the Non-Medical Chemicals Minerals and Gases market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of General Ferrosilicon. Volatility in the prices of key inputs is creating multiple issues that impact procurement within General Ferrosilicon category such as benchmarking and budgeting of the procurement costs.

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 Additionally, outdated assets are also increasing the cost for suppliers.

Markets across the globe are reeling under shortage of professionals and workforce that have relevant skills and training. Minimum wages and stringent regulations are compelling suppliers to increase their employee expenses which are expected to have an inflationary impact on buyers' procurement cost.

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with General Ferrosilicon procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Buyers need to evaluate the in-depth expertise of suppliers in the General Ferrosilicon 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 repurchase used products at fair market value. This assists buyers to dispose of used products in a convenient manner. Also, during such repurchases, suppliers provide credits to buyers for future purchases. This reduces overall procurement costs for buyers.

Buyers must have a clear understanding of the subcontracting policies, if any, of General Ferrosilicon suppliers. Factors such as cost incurred, service quality, adherence to timelines, and regulatory compliance of subcontractors employed by suppliers should be carefully assessed prior to engagement.

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