Safety Consulting Market Procurement Intelligence Report

The market for Consultancy and its sub-segments such as Safety Consulting are at an interesting intersection. Many major Safety Consulting suppliers are seeking inorganic growth to diversify their services and gain access to new products and new technologies at a lower cost. The strategy serves consultancy companies well as they can pitch for a larger scope of work and truly become strategic partners of their clients.

The market is rapidly showing signs of a great divide - at one extreme is a low-cost market with almost commoditized services and at the other end is the market for high cost specialized services. Safety Consulting vendors are adopting starkly different business models and cost structures in an effort to address both the markets.

Traditionally, clients were charged on per diem basis for Safety Consulting. However, rising pressure from clients to decrease pricing has resulted into an alternative pricing model of value-oriented billing where supplier's remuneration is linked to the performance or outcome of the project.

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

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 Safety Consulting category procurement. The report offers a succinct analysis of Safety Consulting procurement best practices.

For example, Buyers should invite bids from industry competitors to ensure that the offers they receive are competitive. Service providers may be willing to offer a multi-year engagement at a reduced fee, which can be beneficial for category buyers in the long-term.

Buyers should engage with service providers through a performance-based pricing model wherein consultants should be paid based on the quality of services delivered by them.

Buyers need to adopt a single sourcing model instead of sourcing from different consultants to strengthen their partnership with the selected service provider. This also reduces management complexity, as they need to deal with a single Point of contact.

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