Micro Switches Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Engineering Components as well as Micro Switches procurement trends are poised to change the business practices and procurement thumb rules. Suppliers are continuously taking efforts to improve efficiencies and productivity and deploying processes and technologies. Some of these investments are likely to increase their costs in the shorter term, but learnings from other sectors keep the suppliers optimistic about a lean cost structure in the longer run.

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 Additionally, outdated assets are also increasing the cost for suppliers.

Suppliers of Micro Switches are moving up the value chain - both organically as well as through M&As. Their portfolios are increasingly being diversified with the objective of offering integrated solutions that go beyond just Micro Switches. Even buyers are engaging vendors who can act as a one-stop solution provider across their geographic footprint. Such strategic engagements can help buyers with savings associated with economies of scale and management of a much smaller supplier base.

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

Micro Switches 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 Micro Switches procurement strategy.

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 should engage with suppliers that have recycling capability. Recycling capability of the suppliers will lower their production costs which will be passed on to buyers. Additionally, the recycling capability will contribute in furthering the sustainability goals of the buyers' organization.

Strong R&D focus is the sign of a supplier committed to enhancing the quality and cost proposition of its solutions. Buyers should collaborate with such suppliers for development of low-cost but highly efficiency products that can bring their OPEX down.

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