Transformer-rated meters Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Engineering Components as well as Transformer-rated meters procurement trends are poised to change the business practices and procurement thumb rules. Suppliers of Transformer-rated meters are moving up the value chain - both organically as well as through M&As. Their portfolios are increasingly being diversified with the objective of offering integrated solutions that go beyond just Transformer-rated meters. Even buyers are engaging vendors who can act as a one-stop solution provider across their geographic footprint. Such strategic engagements can help buyers with savings associated with economies of scale and management of a much smaller supplier base.

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 Additionally, outdated assets are also increasing the cost for suppliers.

Regulatory guidance on data protection and increasing concern over cybersecurity have increased the costs for suppliers as they incur additional spend on compliance and security. These additional costs have a potential to drive marginal increase in prices across the key geographies.

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

Transformer-rated meters procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with Transformer-rated meters procurement strategy.

For example, Buyers should invest in benchmarking studies that help category managers to improve their knowledge on market pricing or billing rates of service providers. This helps them to not only save costs but also increase their negotiation power.

Competitive bidding as a cost optimization tool is extremely potent but should be carefully deployed only when there is no significant differentiation among Transformer-rated meters suppliers.

Buyers should assess the level of adoption of the latest technologies by suppliers to assess cost-saving opportunities and quality that can be provided by the latter. For instance, the adoption of technologies such as cloud computing will enable suppliers to reduce their internal computing hardware requirements for operations such as CAD and CAM. This can, in turn, enable them to reduce their operating costs, thereby suppliers can offer products at lower rates to buyers.

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