Smart Meters Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Engineering Products and Equipment as well as Smart Meters procurement trends are poised to change the business practices and procurement thumb rules. Suppliers are under an enhanced pressure to offer greater quality, options that suit unique requirements and overall experience of the customer stakeholders involved.

Procurement costs for Smart Meters are highly impacted by an increase in the costs associated with the value chain of Smart Meters, such as logistics, labor cost and energy. Additionally, outdated assets are also increasing the cost for suppliers.

Markets across the globe are reeling under shortage of professionals and workforce that have relevant skills and training. Minimum wages and stringent regulations are compelling suppliers to increase their employee expenses which are expected to have an inflationary impact on buyers' procurement cost.

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

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 Smart Meters. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers must have a clear understanding of the subcontracting policies, if any, of Smart Meters suppliers. Factors such as cost incurred, service quality, adherence to timelines, and regulatory compliance of subcontractors employed by suppliers should be carefully assessed prior to engagement.

Strong R&D focus is the sign of a supplier committed to enhancing the quality and cost proposition of its solutions. Buyers should collaborate with such suppliers for development of low-cost but highly efficiency products that can bring their OPEX down.

Buyers should engage with suppliers that have adopted a global delivery model as it reduces buyers' risk. In this model, any disaster/emergency at any operating facility of supplier will result in the work being transferred to a different facility, thereby ensuring continuity of the project and reduced risk for buyers. This model also provides buyers access to skilled labor from across the globe, thereby improving the quality of engineering products provided by the supplier.

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