Tag: supplier benchmarking

IR39

4 Effective Strategies to Make Strides in Supplier Relationship Management

Supplier relationship management (SRM) is an integrated approach that addresses and provides benefits for both the buyer and seller sides. It should be noted that not all suppliers are the same, so not all customer-supplier relationships should be dealt with through a single strategy. The typical goal of supplier relationship management is to streamline and improve processes between a buyer and its suppliers. It is all about developing a mutually beneficially relationship with suppliers, especially those deemed as most strategic to the brand, to promote quality, efficiency, and innovation among several other benefits. As with many procurement activities, at the most basic level, supplier relationship management can be used to reduce both prices paid and costs to the organization. Developing appropriate styles of interaction can also make it is possible to save money. The key to developing an effective supplier relationship management approach is a well-understood supply base.

Strategies for better supplier relationship management

Leverage technology

Investing in a good supplier management software helps companies keep track of information about their suppliers in one place. Companies can also take one step further and install an advanced purchase order management software which is useful in creating, processing, and tracking purchase orders with the suppliers.

Ensure timely payments

Fulfillment of payments on time is a vital element of an effective supplier relationship management. This is also a critical step in ensuring that the company’s valuable suppliers are not lost. Timely payments also facilitate companies to establish their credibility and reliability as a customer to their suppliers. Just like companies like to receive prompt delivery of goods and services from the suppliers, the suppliers expect prompt payments. In case companies are unable to make payment on the date agreed, then they must inform the supplier as soon as possible with the date on which they can expect the payment.

request proposal

Make detailed agreements

Supplier relationship management is a non-negotiable in the case of companies that buy from a vendor on a regular basis. Begin by listing out what both parties expect from the partnership such as item or service description, price, delivery terms, payment terms, and communications. Then have both parties sign it. The complexity of this document depends on the business requirements. A well-documented supplier relationship agreement reduces the possibility of confusion or disputes and paving way for better supplier relationship management.

banner SE (2)

(more…)

School and office accessories on wooden background

Tips and Best Practices in the Global Abrasives Market

Abrasives are usually used in shaping or finishing a workpiece using friction. Normally, in finishing, process materials are often polished to give it a smooth and reflective surface. However, in the case of satin, matte, or beaded finishes abrasives are used to roughen the surface. Abrasives are largely used in industrial applications in grinding, polishing, honing, buffing, drilling, cutting, lapping, sharpening, and sanding. Calcite, emery, diamond dust, sand, rouge, sandstone, and powdered feldspar are some of the common forms of naturally appearing abrasives. Majority of the demand for abrasives is driven by its use in industries such as an automobile, metal fabrication, consumer goods, and construction. The automotive industry accounts for roughly 40% of the demand in the abrasives market.

Get Free Sample_SEEmerging market overview

Emerging markets are likely to provide more scope for the demand growth in the abrasives market. APAC is the fastest growing region in the world and is expected to keep up this growth pace due to the growth of emerging economies such as China and India. Increase in the middle-class population in the APAC region is driving the growth of the automobile industry, which, in-turn, drives the demand for abrasives. The contribution of emerging economies such as MEA and South America cannot be neglected as the region’s automobile industry is experiencing steady growth prospects.

Market pricing

The price of abrasives is highly dependent on the raw material and energy expenses incurred by the supplier. Most suppliers engage in forwarding contracts to mitigate the risk of raw material price fluctuation and adopt renewable source of energy, which leads to cost reduction in operations. As a result,  prices in the global abrasives market are expected to remain stable in the coming years. The prices of abrasives in this market are highly dependent on the volume of order quantity, which is why volume-based pricing is highly adopted in this market.

Procurement tips

The spend on the abrasives category accounts for a small share of the buyer’s cost structure and most buyers prefer a tactical approach toward category management. As a result, most of the purchases are often based on the immediate necessity for abrasive materials. However, buyers from automotive and metal fabrication industries observe streamlined procurement and bulk buying. Also, the majority of the buyers use the abrasive material as tools in manufacturing operations. As this accounts for a small share of the buyer’s overall cost buyers should prefer a VMI approach toward managing abrasives. Adopting such approach can also significantly reduce management expenses for buyers as suppliers would undertake order generation, material delivery, and storage of the procured abrasives.

Category management tips

The product development and differentiation in the global abrasives market are bleak due to which most suppliers adopt a cost-differentiation strategy for gaining market share. Category managers must focus on timely delivery of material to their premises, which would ensure that operations do not halt due to low material availability. Cost containment could be achieved by adopting forward contracts approach. Additionally, category managers can also look to outsource cost extensive functions to third-party service providers through low-cost country sourcing. The level of outsourcing is dependent on the criticality of the category for buyers due to which buyers from automotive and metal fabrication industries conduct most procurement functions in-house.


Read more about the market outlook of the abrasives market along with procurement insights, pricing models, category management, and market challenges in SpendEdge’s upcoming report on the global abrasives market.

CTA view full report


IR25

A Market Overview of the Corrosion Inhibitors Market

Corrosion inhibitors are widely used across many industries to decrease the corrosion rate of a metal or alloy. They are also available in over-the-counter products in the form of a spray with a lubricant or penetrating oil. It is also used in industrial applications, particularly in manufacturing process where it is used in boilers to minimize the effects of acid, in paints to give durability, in antiseptics to counter microbial corrosion, and in oil refineries to help protect against hydrogen sulfides. Corrosion inhibitors have a wide variety of applications across the industrial and consumer industry.

Get Free Sample_SEGlobal spend in corrosion inhibitor market

The overall spend in the corrosion inhibitor market is primarily driven by the increase in demand for the treatment of water and wastewater due to environmental awareness, primarily in emerging markets. Additionally, the growing requirement for industrial water is also expected to impact the demand for corrosion inhibitors. The industrial water segment has been projected as the fastest growing sector among all water segments by the US FAO. Oil and gas segment has also been contributing to the global spend in this market and their demand is highly dependent on the price of crude oil.

SpendEdge Insights TrialPricing outlook

The buyers in the corrosion inhibitor market are demanding that suppliers provide innovative products that provide long-term corrosion resistance, performance monitoring of corrosion inhibitors in end-user applications, and the adoption of sustainability measures. Products having chromates are being banned in several countries due to their toxicity. However, these products cost less and are cost-effective corrosion-resistant solutions. This puts suppliers under pressure to invest in R&D to meet changing needs of buyers and ensure regulatory compliance. Leading suppliers such as BASF and DowDuPont have developed patented corrosion inhibitors that can provide superior performance and are eco-friendly.

Looking for a complete pricing outlook and information on factors influencing costs and category spend? Request a sample

Market innovations

Most often, hydrogen sulfide gathering system collects and transports large volumes of gases and condensates from operating fields, which can cause major pipeline corrosion problems. One leading supplier in the US tested an enhanced corrosion mitigation product which can provide a long-term solution for the buyer. Additionally, in the metal treatment sector, a widely used compound hexavalent chromate is banned by REACH in Europe. A leading APAC-based supplier has collaborated with a research unit to develop inhibitors that permit inhibiting ions in coating systems that can be used as alternatives to hexavalent chromates. This environment-friendly solution was tested in coating systems and was found to be an effective solution for the steel industry.

Procurement best practices

Suppliers in this industry is prioritizing performance monitoring which can result in the development of long-term and effective customized corrosion inhibitor programs. Suppliers have developed expertise in performance monitoring of corrosion inhibitor solutions to enhance their products. Furthermore, effectively managing negotiation levers can aid buyers in increasing their cost-savings. Category managers can leverage common negotiation levers such as fees and payment period terms, corrosion inhibitor grade, and packaging solutions.

 

Read more about the market outlook of the corrosion inhibitors market along with procurement best practices, pricing insights, category management, and market challenges in SpendEdge’s upcoming report on the global corrosion inhibitor market.

CTA view full report


cyber security

Growth of the Frozen Food Industry Driving the Demand for Myristic Acid

SpendEdge Procurement Market Intelligence I- Myristic AcidLondon, Apr 11, 2018: There is an increase in the overall global spending on processed foods, personal care, and cosmetic products due to economic growth. As these are the major end-users of myristic acid, and it has led to the growth of the global myristic acid market. Additionally, the increase in demand for natural fatty acids in food products from end-consumers ensures that they focus on production of food, which contains the necessary amount of natural fatty acid, such as myristic acid.

SpendEdge’s latest procurement research report on the global myristic acid market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the chemicals, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“Myristic acid acts as a preservative within the frozen food industry due to its food quality retention properties. The frozen food industry is expected to grow at a CAGR of 3.6% by 2019, and thereby increase the demand for myristic acid” – A. Kowshik, chemicals expert at SpendEdge.

The raw materials market for myristic acid experiences seasonal volatility due to natural calamities such as hurricanes, tsunamis, floods, or drought. Also, the production of nutmeg, coconut oil, palm oil, and palm kernel oil, which are major raw materials of myristic acid require a tropical climate. Therefore, such seasonal weather changes affect tree plantation and interrupt the supply of myristic acid in adequate amounts causing a major procurement problem.

Need more insights on this report?

Request Free SampleThis procurement report on the glass myristic acid market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

Get unlimited access to all our reports. Get access to our reports to gain insights, platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now


Related posts

IR4

Supply Market Overview: Fiber Optic Cables

Optical fibers are extensively used in fiber-optic communications, where they permit the transmission of data over longer distances and at higher bandwidths than electrical cables. Fibers are preferred over metal wires because signals travel along them with lower resistance. Additionally, fibers are immune to electromagnetic interference, which distorts the signals. It is because of fiber cables that the world feels so interconnected and you can easily stream videos from the US on the Asian subcontinent. The demand for fiber optic cables is expected to grow exponentially until 2020, mainly due to the transition towards 5G networks and the need to effectively manage the growing data traffic across the globe. (Source: Fiber Optic Cables Procurement Report)

Spend potential and key markets

Owing to the expanding broadband network and investment in next-generation passive optical network-based technologies, such as 5G network and IoT, Europe is expected to witness a higher demand for fiber optic cables in the coming years. Also, at present, North America is one of the key markets for the suppliers of fiber optic cables, owing to the large investments from telecommunication service providers such as Verizon and AT&T to improve LTE connectivity and their initial investment in 5G networks.

SpendEdge Insights TrialThe APAC region is expected to witness rapid growth due to the implementation of government initiatives to improve network and communication infrastructure in countries such as China, India, and South Korea. Finally, regions such as South America and MEA are expected to grow steadily due to the focus on improving network connectivity across countries such as Brazil, South Africa, Chile, Argentina, Iran, and Israel.

Cost analysis: Supplier costing

Manufacturing costs account for a major chunk of the supplier’s cost base, which includes expenses incurred to obtain raw materials such as optical fiber, PE, PVC, steel, and aluminum. Additionally, labor costs are also expected to increase marginally due to the growing competition among suppliers. Finally, R&D costs are expected to increase slightly as suppliers are increasingly focusing on developing patented technologies to manufacture complex cable designs and cables that are specific to the application.

Looking for a complete TCO analysis and information on factors influencing costs and category spend? Request a sample

Supplier selection and procurement best practices

Buyers must engage with suppliers who can provide end-to-end fiber optic solutions that include design, installation, and maintenance services. To procure the best quality fiber optic cables, it is critical to engage with suppliers who possess valuable design experience and understand application needs to save time and money for buyers. Buyers usually engage for long durations with suppliers, which is why they must evaluate suppliers’ financial and operational capabilities to determine the long-term procurement viability.

Top five suppliers of fiber optic cables

  • Corning
  • Prysmian Group
  • FiberHome Telecommunication Technologies
  • HENGTONG Group
  • Hangzhou Futong Communication Technology Holdings
  • For more information on the revenues, download a report sample

 

SpendEdge’s procurement report offers strategic insights on the supply market for fiber optic cables and helps category managers to gain information on the procurement trends, pricing models, supply market, and key sourcing procurement challenges affecting the global fiber optic cable market.

CTA view full report


School and office accessories on wooden background

Know Your Market: Industrial Gearbox Sector

Gearboxes are widely used in various fields for a wide range of application. As a result, there are numerous kinds of industrial gearboxes, all with their own unique mechanisms, features, and functions. Gearboxes are essential for the functioning of devices and equipment like conveyor belts, elevators, 3D printing devices, mining, and heavy vehicles. The demand for the industrial gearbox is on a rise as automation in end-user industries such as paper, cement, sugar, and steel to reduce operational costs associated with manufacturing facilities are also on a rise. Additionally, many end-user industry buyers are trying to enhance the efficiency of machines and engines at their manufacturing facilities by procuring and installing industrial gearboxes.

Get Free Sample_SE

Supply Market Overview: Industrial Gearbox Market

Regional spend

At present, several end-user industries are shifting their heavy manufacturing facilities to the APAC region. As a result, the spend in this market is expected to rise significantly. However, its quite a contrasting case in MEA as most of the buyers in this region are from the oil and gas industry, which uses industrial gearboxes for upstream activities. Rest of Europe and North America are expected to grow steadily as buyers from the renewable energy sector are continuously focusing on increasing the production of renewable energy by setting up windmills, which require industrial gearbox. However, the demand is not stable in those regions as most of the end-user industries located in Europe and North America are shifting their production hubs to APAC to enhance their profit margins.

SpendEdge Insights TrialPricing outlook

With raw material prices on a rise, the pricing of the industrial gearbox is expected to change. Additionally, factors like commodity price fluctuations, the rise in R&D investment, and increase in logistics costs are expected to affect the final pricing. Buyers in this market are opting for a global sourcing strategy to procure high-quality and efficient industrial gearboxes based on end-user industry applications. This strategy involves costs related to inspection, quality assurance, maintaining overseas relations, and hefty tariffs on imports and exports.

Looking for a complete pricing outlook and information on factors influencing costs and category spend? Request a sample

Factors impacting market demand

One of the biggest demand drivers for the industrial gearbox is the requirement for replacements in the manufacturing sector. Industrial gearboxes that are used in end-user industry applications such as manufacturing processes require periodic replacement due to gradual wear and tear. Maintenance of industrial gearboxes is required to improve the efficiency of the manufacturing process. an average replacement can cost around $1,300-$1,600 based on the end-user industry application and the type of gearbox used. Additionally, the continuous evolution of engines and equipment has increased the requirement for advances in industrial gearboxes to enhance efficiency. As a result, buyers of end-user industries are increasingly adopting and installing advanced industrial gearboxes.

Sustainability practices

Suppliers should continuously monitor the amount of waste being generated by their business activities, along with the percentage of recycled waste out of the total waste generated. This includes practices such as monitoring the amount of waste sent to landfills and the percentage of recycled waste. For instance, Siemens recycles more than 75%-85% of the waste generated at its production facilities and thus reduces its volume of waste sent to landfills. Additionally, suppliers are taking initiatives to reduce GHG emissions and water consumption as well.

For more information on the revenues, download a report sample

 


Read more about the market outlook of the industrial gearbox market along with procurement best practices, pricing models, supply market insights, and market challenges in SpendEdge’s upcoming report on the global industrial gearbox market.

CTA view full report


IR17

Increasing Oil and Gas Extraction Activities Driving the Demand for Oilfield Services

SpendEdge Procurement Market Intelligence InfographicsLondon, Apr 27, 2018: A slow recovery in oil and gas prices, due to an easing of the supply glut in the market, is motivating operators to revisit shelved E&P projects, leading to growth in OFS demand. The supply glut was the result of price wars among the top oil and gas producing countries, which resulted in the supply of oil and gas exceeding the demand. As a result, the demand for oilfield services was on the rise.

SpendEdge’s latest procurement research report on the global oilfield services market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the chemicals, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“Industrial development, rising global population, and economic growth worldwide drive the need for energy. Oil and gas are the major raw materials for energy-generating companies worldwide. Nearly half of the global energy generated in 2016 was produced using oil and gas which resulted in demand for oilfield services” – Anil Seth, chemicals expert at SpendEdge.

An assessment of compliance of suppliers with labor regulations is essential to buyers. This is critical, as labor issues are prevalent in countries such as child labor and forced labor in countries such as China, Russia, as well as African countries, which have active oil and gas industries, and hence, require OFS. These regions have weak enforcement of regulations, which can result in suppliers engaging in noncompliant activities without the knowledge of authorities.

Need more insights on this report?

Request Free Sample

This procurement report on the glass oilfield services market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

Get unlimited access to all our reports. Get access to our reports to gain insights, platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now


Related posts

photography work space on top view

Growing Transmission and Distribution Network Driving the Demand for High Voltage Capacitors

SpendEdge Procurement Market Intelligence InfographicsLondon, May 16, 2018: Factors such as rapid industrial development across emerging markets and growing transmission and distribution network worldwide have subsequently increased the demand for high voltage capacitors. In terms of applications, high voltage capacitor is majorly used in bulk power transmission as it helps to reduce transmission losses. The adoption and implementation of a technological upgrade in the power market has enhanced the efficiency of high voltage capacitors and improved the end-user experience, which drives the market growth

SpendEdge’s latest procurement research report on the global high voltage capacitor market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the electrical component, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“High voltage capacitors are used in diverse end-user industries such as power supplies, power transmission and distribution, drive systems and inverters, motors, oil and gas electronics, and medical electronics. Further, high voltage capacitor demand is relatively strong in smartphones, tablet, automotive electronics, and computers, which is anticipated to drive the market growth.” – Tridib Bora, electrical components expert at SpendEdge.

Reliability of high voltage capacitor is important to ensure their safe operation. Buyers conduct several tests to check the reliability of capacitors. Therefore, buyers/suppliers must check various documents published by international and national bodies such as International Electrotechnical Commission as they enumerate guidelines regarding the reliability of capacitors.

Need more insights on this report?

Get Free Sample_SE 

This procurement report on the high voltage capacitor market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

Get unlimited access to all our reports. Get access to our reports to gain insights, platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now


Related posts

IR34

Customs Brokerage Market – A 360° Market Overview

Customs brokerage firms make the international trade possible by facilitating the shipment and delivery of goods across international borders. The agency has to take care of shipments which occur in a sheer volume across international borders every single day. Each country has a different set of rules and regulations regarding customs, import, and export. Additionally, laws and regulations regarding customs are changing constantly, making it impossible for a normal person to do business across international borders. The customs broker facilitates this transaction as they are responsible for knowing all the rules and regulations. The broker will facilitate and streamline the shipping process for the individual or the organization.

Request Free SampleMarket growth

The customs brokerage market is on track for a steady growth of 8.5% per annum. Buyers, especially in North America and Europe, are collaborating with regional suppliers for strategic sourcing and supply chain management. Collaboration with regional suppliers has enabled buyers to reduce their TCO for customs brokerage and helped them realize cost savings between 5% and 7%. Although global firms can offer a wide range of customs brokerage services, it is their inability to offer assured savings that is swinging the market in favor of regional suppliers.

Market pricing

Although the demand for customs brokerage services is rapidly on the rise, the prices are only set to marginally increase over time. The market for such services is highly fragmented, resulting in high level of competition which is expected to keep the prices stable. The growth of the manufacturing industry has alerted service providers to offer their services for increased global trade. This will bring in added revenues to such service providers.

Pricing model

The brokers can charge their clients either an hourly rate, a fixed fee, or fee-based on services provided. However, both buyers and sellers are hesitant to deal on a fixed fee. They prefer to deal on an hourly rate basis, which bills customers on the basis of time involved for the advice and solutions on processing the shipment. It also provides the buyer with finer control over the expenses associated with customs clearance.

Cost-saving levers

Reducing the total lifecycle or ownership cost is one of the most effective cost-saving levers in this market. Reducing the TCO associated with customs clearance process by focusing on R&D to come up with technological innovations can help suppliers increase their process efficiencies, reduce overall costs, achieve increased economies of scale, and transfer these savings to buyers.

Market innovation

Suppliers for long had been working on technology to detect defects in shipment. These technologies include smart seals and trafficking sensors that alert suppliers in case if a seal of a cargo item is tampered and help to locate the shipment before it reaches a customs official. A supplier based in California is utilizing a smartphone app that connects shippers and carriers. The app allows containers from multiple shippers to be grouped at the ports before alerting different carriers on when containers are available and where they should be taken.

 

Read more about the market outlook of the customs brokerage market along with procurement best practices, pricing insights, supply market insights, and market innovations in SpendEdge’s upcoming report on the global customs brokerage market.

CTA view full report


Request free proposal