Heavy Duty Motor Vehicles | Suppliers | Pricing Trends , Best Practices

Strategic Sourcing Guide to Heavy Duty Motor Vehicles Procurement

Overview

Several macro changes in the dynamics of overall Purchase as well as Heavy Duty Motor Vehicles procurement trends are poised to change the business practices and procurement thumb rules. 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.

The market has undergone several structural changes including M&As and vertical integration efforts of suppliers. This has resulted in some issues such as erosion of previously established supplier relationships but has also opened new opportunities to onboard new suppliers with a wider range of offerings in .

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

Heavy Duty Motor Vehicles Procurement Best Practices

Heavy Duty Motor Vehicles procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with Heavy Duty Motor Vehicles procurement strategy.

For example, A few of the factors that cause pollution from fleet vehicles are the use of outdated vehicles, inferior quality fuel, and poor maintenance. The rise in awareness about air pollution is forcing buyers to collaborate with service providers that adopt green initiatives and can offer green fleet solutions.

Vehicle replacement cycles is a mechanism used to calculate maintenance and depreciation-related costs associated with a vehicle. Service providers perform such calculations on behalf of buyers. Vehicle replacement cycles enable end-users to follow safety measures and minimize operating costs. These are calculated after a certain mileage or specific years of use. Furthermore, buyers should engage with service providers that offer analysis with respect to fuel consumed as well as provide maintenance and repair services.

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.

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Risks in Heavy Duty Motor Vehicles procurement

Heavy Duty Motor Vehicles procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Heavy Duty Motor Vehicles 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
Suppliers may face a situation where they are unable to honor a contract in its entirety due to shortage of resources, finances or capabilities. While contractual terms safeguard buyers from the non-performance, their operations could still face massive disruptions due to suppliers' non-performance
Irregular maintenance of fleet increases the amount of emissions and this is a threat to the environment. Violation of emission standards can lead to penalties as well as cancellation of services and agreement

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Who should read this report

The report is intended to serve as a one-stop reference guide for Heavy Duty Motor Vehicles 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 “Heavy Duty Motor Vehicles: Procurement Report 101” as well as for category experts actively tracking the global Heavy Duty Motor Vehicles procurement market.

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

Heavy Duty Motor Vehicles Category Insights: What is inside

The Heavy Duty Motor Vehicles 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 Heavy Duty Motor Vehicles procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Heavy Duty Motor Vehicles. 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 Heavy Duty Motor Vehicles 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 Heavy Duty Motor Vehicles 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 Heavy Duty Motor Vehicles 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.