Off-Highway Trucks | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to Off-Highway Trucks Procurement

Overview

Several macro changes in the dynamics of overall Purchase as well as Off-Highway Trucks procurement trends are poised to change the business practices and procurement thumb rules. With fuel prices going up in many geographies, category managers are under tremendous pressure to compensate by achieving a higher cost saving in procurement of Off-Highway Trucks.

Regulatory changes are taking place more frequently and, in some cases, randomly. It is getting difficult to align procurement with all the new regulations, especially when category managers are responsible for multiple regions with different regulations.

Increased availability of options both in terms of suppliers and new propositions from suppliers is also influencing the procurement trends for Off-Highway Trucks and improving leverage for buyers in some cases.

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

Off-Highway Trucks Procurement Best Practices

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Off-Highway Trucks category procurement. The report offers a succinct analysis of Off-Highway Trucks procurement best practices.

For example, 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.

Buyers should always ensure that the price quoted by a service provider includes all other charges such as VAT, disposition fees, interest rates, and other taxes charged by suppliers. A detailed fee structure helps buyers save significant costs and helps to compare suppliers in an efficient way.

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Risks in Off-Highway Trucks procurement

Off-Highway Trucks procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Off-Highway Trucks 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
The rise in awareness about air pollution is forcing buyers to collaborate with service providers that adopt green initiatives. A few of the factors that cause pollution from fleet vehicles are the use of outdated vehicles, inferior quality fuel, and poor maintenance
Contract-related risks where unfavorable credit terms may severly penalize buyers for delayed payments or entitle the supplier to demand pre-payments or shorten the payment terms are not very common in the category but they do exist in certain situations where buyers' liquidity or financial health is in question

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Who should read this report

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

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

Off-Highway Trucks Category Insights: What is inside

The Off-Highway Trucks 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 Off-Highway Trucks procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Off-Highway Trucks. 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 Off-Highway Trucks 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 Off-Highway Trucks 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 Off-Highway Trucks 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.