Product Performance Testing Market Procurement Intelligence Report

Business practices within Product Performance Testing market are heavily influenced by changing trends across the category as well as within the broader Operation of Industrial Facilities market. Suppliers are shedding the category expert tag and moving up the value chain to offer an integrated approach to their services. With this new approach, suppliers can offer a wide portfolio of services and position themselves for large contracts that go beyond just Product Performance Testing.

Many companies are looking to engage Product Performance Testing supplies in a long-term partnership to derive the highest ROI possible and creating an environment of trust and collaboration that allows for new optimization strategies.

Several macro level trends such as slowing economic growth, trade conflicts, rising wages and technological disruptions have put pressure on managers to reduce their spend on Product Performance Testing without affecting the performance.

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

The report discusses in detail the best practices that have served well the category managers responsible for Product Performance Testing procurement.

For example, Benefits of an integrated program are more apparent over a period of 5-7 years, and the goal in such relationships is to achieve cost savings and improve performance in the long run. Buyers should opt for suppliers that have a track record of long-term engagements as this will increase the probability of these suppliers sustaining in a mutually beneficial relationship for a longer duration.

Category managers must explore opportunities to integrate planning and management activities of categories using analytics, to gain better control over category spend. This will also allow them to consolidate their supply base easily, as well as to segment suppliers based on requirements and spend on each supplier.

Investing in benchmarking studies that help category managers enhance their knowledge on pricing or billing rates of suppliers allows them to not only save costs, but also negotiate better with suppliers. For example, while negotiating for bundled services, they can save significantly on a single service by cross-verifying rates quoted by suppliers against industry benchmarks.

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