Vessel Laying-Up Services Market Procurement Intelligence Report

Transportation Support Services market around the world is undergoing rapid transitions that have a massive potential to influence the way companies strategize for Vessel Laying-Up Services procurement and the cost they have to incur. Shortage of skilled manpower is a prime reason to seek suppliers of Vessel Laying-Up Services. However, even suppliers of Vessel Laying-Up Services are facing the same problem which is impacting their OPEX and thereby pricing structure.

Suppliers are no more just the experts in Vessel Laying-Up Services. Many are moving up the value chain and offering integrated services that go beyond just Vessel Laying-Up Services. This new business model helps buyers on multiple counts, such as fewer suppliers to manage, cost savings arising of volume buying and long-term strategic partnerships with a chosen few suppliers that maximize the ROI and allow for strategic optimization experiments.

Supplier evaluation and performance management is now being driven by select KPIs that serve as hard evidence to support cost reduction. Suppliers of Vessel Laying-Up Services are developing targeted KPI matrix that help with actionable data on their performance and cost savings they achieved for the customer.

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 Vessel Laying-Up Services category procurement. The report offers a succinct analysis of Vessel Laying-Up Services procurement best practices.

For example, Buyers should properly evaluate the effectiveness and sustainability of suppliers' safety process before onboarding them. Suppliers should be required to provide details data on workplace safety KPIs and accident statistics to complete their safety evaluation. This process can reduce accident related risks in the buyer's operations and reputational risks that arise from industrial accidents.

It is important for category managers to track and measure suppliers' performance against a defined set of KPIs (agreed to by both parties during contract negotiation). The result of suppliers' performance can be directly linked to the quality of support provided.

Competitive bidding as a cost optimization tool is extremely potent but should be carefully deployed only when there is no significant differentiation among Vessel Laying-Up Services suppliers.

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Vessel Laying-Up Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Vessel Laying-Up Services procurement. Some examples include:

• Suppliers may face a situation where they are unable to honor a contract in its entirety due to shortage of resources, finances or capabilities. While contractual terms safeguard buyers from the non-performance, their operations could still face massive disruptions due to suppliers' non-performance
• Stringency in regulatory standards is high across geographies globally. Changes in these standards can have adverse effects on the industry, as firms may end up paying penalties if they fail to adhere to them
• Contract-related risks where unfavorable credit terms may severly penalize buyers for delayed payments or entitle the supplier to demand pre-payments or shorten the payment terms are not very common in the category but they do exist in certain situations where buyers' liquidity or financial health is in question

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