Safety Systems And Tools Category Procurement Intelligence Report

A changing ecosystem within the Staff Health and Safety market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Safety Systems And Tools. The market has undergone several structural changes including M&As and vertical integration efforts of suppliers. This has resulted in some issues such as erosion of previously established supplier relationships but has also opened new opportunities to onboard new suppliers with a wider range of offerings.

With the influx of millennials in the workforce and increasing diversity at the workplace, companies are struggling to design pay and benefits processes that are uniformly relevant for the lifestyles of such diverse groups.

Suppliers are increasingly offering a 'bundle' of services which is marketed as a cost saving option. The bundled offering often includes services that are not required by the buyer or are charged at a much higher rate than an A la carte option with another supplier.

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 Safety Systems And Tools. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers can achieve cost savings by bundling procurement of various personnel-related services (e.g. benefits administration, payroll, time and attendance, and HR management functions). The integration of different HR functions leads to the automation of employee data across various verticals. The integration also reduces the burden of manually entering and updating necessary information and offers consistency and accurate tracking across multiple systems.

Category managers should track and measure suppliers' performance against a predefined set of KPIs that are agreed by both parties during contract negotiation. Results of the metrics can be linked to the employee satisfaction achieved in managing employee services and cost saved by successfully integrating various HR services with such administration.

Buyers should engage with service providers that offer value-added services and programs across multiple regions to ensure procurement of standardized services that promote employer brand and keep the costs in check.

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