Marking Tools Market Procurement Intelligence Report

The market for Tools and its sub-segments such as Marking Tools are at an interesting intersection. Suppliers are under an enhanced pressure to offer greater quality, options that suit unique requirements and overall experience of the customer stakeholders involved.

Several structural changes including M&As and vertical integration efforts of suppliers are characterizing the broader market. Such strategic developments can erode the strength of previously established supplier relationships due to changed realities in the supplier's ecosystem. At the same time, buyers may also find opportunities to onboard new suppliers with a wider range of offerings or better contract terms for .

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 Additionally, outdated assets are also increasing the cost for suppliers.

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

The report discusses in detail the best practices that have served well the category managers responsible for Marking Tools procurement.

For example, 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.

Buyers must have a clear understanding of the subcontracting policies, if any, of Marking Tools 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.

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.

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