Permanent POS Market Procurement Intelligence Report

Business practices within Permanent POS market are heavily influenced by changing trends across the category as well as within the broader Promotion market. In recent years, the market has witnessed a significant number of strategic collaborations, mergers, and acquisitions. Such developments have enabled the suppliers to expand their portfolio of offerings, geographic presence, and value chain. Moreover, suppliers have also gained access to new technologies and resources.

Price rise in certain essential assets and supplies required to deliver Permanent POS is making a significant addition to the supplier's overall expenditure. This could have an inflationary impact on buyer's procurement expenditure in the Permanent POS market.

Buyers are moving towards longer contract durations and strategic partnerships with suppliers to benefit from value-based discounts, integrated services, low renewal cost and lesser expenses on contracting activities.

As a result, category managers need to closely monitor the Permanent POS procurement trends and identify changes required in their procurement environment for the category.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Permanent POS. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers should engage with service providers that can consolidate multiple marketing, advertising and communications disciplines such as SEO, SEM, social media management, and traditional advertising. Such consolidation increases cost savings, convenience, and facilitates supplier performance benchmarking.

While engaging with a service provider, buyers should procure creative services from a tier 1 creative agency and outsource the production work to a local agency to reduce billing rates.

It is customary for service provider to charge buyers on a project basis. The project costs are often based on payroll costs incurred by service providers on the various levels of personnel involved in the project. In a bid to derive higher profits, service providers may allocate more senior staff than required. Therefore, buyers must scrutinize the staffing needs of the project and limit the presence of senior staff to not more than 30% of the total allocated staff. This, in turn, providers buyers' advantages such as enhanced cost savings, streamlined execution, and faster delivery time.

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