Tag: Supplier category management

IR31

Top 4 Benefits of Category Management to Grow Your Business

Category management is a concept that is essential for businesses, which deal with retail and manage a plethora of items. It is a technique for companies to make an effective purchase and save a significant amount of money in procurement. But first, let’s understand what it is in layman terms.

What is category management? 

Bundling of items in different categories is technically called category management. Let’s break category management into two parts: category and management. A category is generally a group of similar items that are bought by any company under a single deal. Management is all about the methods of procurement applied to make sure that the company maximizes its savings. Simplifying demand and taking a bigger contract is the key driver behind it. So, basically, the process of collecting and centralizing similar items into a single contract which makes procurement easy is known as category management.

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According to the procurement experts at SpendEdge, “Strategic category management involves the process of developing a clear understanding of the organization’s core values and key objectives.”

Now, let’s discover the top benefits of category management that can help your business to grow.

Category management benefits

Healthier performance of suppliers

An effective and efficient category management plan can help your company to work with suppliers in a more effective manner and can fasten the time between the initiation and completion of the process. Category management, if done strategically, can help a new supplier or contract with layers of adjustments.

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Category management is the sole responsibility of a category manager who looks after all the things related to a given contract or service like sourcing requirements, collecting bids, and negotiating contracts. This provides ample time for business people to concentrate on their work and deliver value-based services to satisfy client’s needs.

Better supplier relationships

Management of category provides an opportunity to establish contacts within the structure of the organization. This is facilitated by the coordination at the highest level and hence, the delegation of specific tasks takes place at the functional level. So, establishing and organizing effective communication in such a way usually helps in improving relationships between suppliers.Contact US

Better insights into spending

Usually, when a category is not owned by anyone, there is hardly anyone who can provide the required insights into the accuracy of expenditure because no one is acquainted with the contracts that are on the way. The full list of suppliers is unknown, and hence, the complete extent of spending is unknown too. It can facilitate the better understanding of spending on the existing as well as upcoming contracts.

Thus, category management can be defined as a process that runs parallelly and forms the base that can lead to the success of initiatives for strategic sourcing. But this is only possible when it is done efficiently and with all the required attention. It is required by the company to take effective steps to lay development and training program to improve skills for competent management of category.


To explore more about the benefits of category management

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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.

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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.

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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

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PVC Packaging Market: Top Market Trends and Drivers

PVC as a material has been growing in popularity as it is flexible, light, cost-effective, transparent, tough, and a safe material that is extensively used for packaging. It has excellent organoleptic properties and consumes less fuel while manufacturing and transporting compared with other packaging materials such as metal or glass. It also gives the product extra protection by acting as a shield against contamination and ensuring longer shelf life. PVC packaging is used in bottles, foil, cap sealing, cling film, hoods, blister packaging, and adhesives tape. The overwhelming growth of the retail industry across the world is fueling the demand for PVC packaging products. As supermarkets across the world deal in large quantities of perishable goods, buyers require PVC packaging to increase their shelf life. So, what are the other reasons affecting the growth of this market?

Request Free SampleSuperior packaging properties

Compared to other forms of packaging, including PET and HDPE, PVC packaging offers enhanced flexibility and a high degree of tensile strength. It is especially useful in extending the shelf life of perishables and withstanding maximum stress from repetitive stretching. PVC materials have more bending and fatigue strength than other plastic materials, which is why it is extensively used in both rigid as well as flexible packaging. Additionally, PVC packaging materials are light and organoleptic and form a barrier against moisture and air contamination. As a result, buyers in the packaging industry are extensively demanding this material.

The growth of the retail sector

The global retail market is experiencing rapid growth with rising popularity of hypermarket formats and e-commerce. Such retailers have to keep up their stock levels so as to fulfill customer demands at all times. As a result, such products require PVC packaging to increase their shelf life. Additionally, the demand for PVC packaging for food and beverage products is increasing rapidly with the per capita spend on food products increasing each year.

Demand for smaller packaging

The consumption habits of people are changing with time. People are hesitant to buy products in bulk, so they look for smaller packaging for sampling purpose. Also, smaller packaging is portable and helps reduce their calorie intake as well. Additionally, such small packages also reduce the per unit prices, making even premium items more affordable. Small packaging is becoming a trend not only in the food sector but also in the cosmetics and pharmaceutical sector, which reduces the storage costs and management complexities. Smaller packages utilize more amount of PVC materials than larger packages for packing a fixed unit quantity of goods.

Investment in R&D by packaging suppliers

Suppliers are pumping in more and more money in R&D activities to improve the physical and chemical properties of PVC. New discoveries will help suppliers to comply with environmental regulations and reduce the health hazards on humans. For instance, suppliers conduct reverse engineering on PVC packaging materials for improving the compound’s physical properties. Tests such as gel permeation chromatography, gas chromatography, thermogravimetric analysis, and FT-IR allow suppliers to identify and evaluate the structurally weak ingredients efficiently. This enables them to effectively replace them with advanced molecules for manufacturing high-quality PVC packages.

 

Read more about the drivers in the PVC packaging market along with procurement challenges, supply market insights, pricing insights, and technological innovations in SpendEdge’s upcoming report on the global PVC packaging market.

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IR33

Overview of the Payments Processing Market

The payments industry has witnessed a significant transformation in the recent years. From handling bundles of cash to using plastic as the preferred payments methods, the payments industry has come a long way. The payment processing industry plays a key role in processing and handling of debit and credit card transactions for organizations. They collect sales information, receive authorizations for transactions, collect funds from the bank, and send payment to the organization. The card payment industry is particularly given a big push by governments across the world with a view to promote cashless payments and mobile wallet. Additionally, rapid growth in the e-commerce sector has led to high penetration of online payment systems in the e-commerce industry, owing to the convenience offered by such payment systems.

Request Free SampleFuture of the market

Since cards are becoming the preferred means of payment, the future looks very bright. Industry analysts from SpendEdge estimate the market to grow at an impressive rate of over 6% annually. One of the main reason behind this remarkable growth is the rise in adoption of POS terminals, mobile wallets, and mPOS in the retail sector. Also, in the future, we may see suppliers of payment processing providing fingerprint scanning systems, allowing merchants to accept payments with the use of fingerprint scanner.

Technological innovations in the market

Contactless RFID credit cards can be considered to be the most significant technological innovation in this market. It allows payment of transactions without any physical contact between the card and the terminal. Contactless RFID credit cards are faster than chip-based and signature credit cards when it comes to processing, convenience, and security. Also, to strengthen the card payment ecosystem, payments processing companies have started to implement EMV technology. In this technology, a microchip is used instead of a magnetic stripe, which provides stronger security; thus, resulting in a reduction of fraudulent activities.

The pricing landscape

So how do these payments processing organization make money? Such companies either employ a transaction-based pricing model or flat-fee pricing. Transaction-based pricing provides transparency in pricing as the charges are based on the cost of each transaction. It also helps buyers in optimizing their expenses. However, in flat-fee pricing, any additional charges are not included, and a fixed fee is set per transaction. This also helps the buying organization in estimating their procurement budget.

Market challenges

The use of electronic payments requires merchants to comply with regulatory standards associated with data protection in terms of cardholder information. For instance, buyers need to comply with PCI DSS to ensure data security for cardholder information. This, in turn, increases merchants’ costs related to the adoption of electronic payments. Also, there has been an increase in the acceptance of infrastructure for electronic payments such as POS terminals within emerging economies. However, the utilization is low due to the lack of interoperability among networks. For instance, as of 2016, around 6 million POS terminals were deployed in Brazil, but the utilization of these POS terminals is low due to the lack of interoperability among networks, restricting the use of electronic payments.

Read more about the market landscape in the payments processing market along with technological innovations, procurement best practices, category management, and pricing models in SpendEdge’s upcoming report on the global payments processing market.

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IR3

Market Overview of the Document Management Software Market

Business processes often generate massive amounts of documentation. It is essential that stakeholders get access to information with ease. With the digital technology picking up, companies are making efforts to go paperless. As a result, many vendors are offering software that streamlines business processes and documents. It helps the business save money and time in sorting and storing paper-based document. Also, document management system provides a far more secure option as compared to paper-based documentation. Primarily, the document management software can be either self-hosted on users premise or cloud-hosted. Cloud-hosted solutions offer remote access and improved security measures. It comes as a no surprise that the market for document management software is growing at an impressive rate of 11.83%. The growth is mostly boosted by SMEs opting for the solutions in developing economies.

Request Free SampleThe demand market

North America is the most popular market for document management software in terms of volumes generated. The North American region has a  sound IT infrastructure, high technological awareness, and easy accessibility to capital. SpendEdge report estimates that the market spending is expected to reach $2.5 billion by 2022. Considering the demand, Europe is also not far away as the region provides a similar type of infrastructure and economic development. The demand in APAC region is fast-growing as the IT infrastructure development is picking up the pace. Additionally, the development of capital markets will increase the access to capital for SMEs, encouraging them to deploy costly solutions such as document management software.

Market supply overview

The market is marked by the presence of global players that cater to the needs of organizational buyers. On the other hand, there are plenty of regional players that cater to the specific needs of buyers in a geographic region. Suppliers are continually adding new functionalities to develop a competitive edge. They have taken significant efforts to integrate advanced technologies such as cloud-based deployment and big data analytics to lower costs, widen the scope, and make the category more lucrative for buyers.

Technological innovations

Many developers have been offering cloud-based solutions which ease pressure on the buyer’s end to invest in physical infrastructure. In the field of document management, it is difficult for buyers to filter and manage the data for meaningful analysis due to the proliferation of sources of data. By using big data analytics, buyers can go through large volumes of unstructured data and explore hidden and meaningful relationships between previously unexplored variables.

Regulations and compliance

Since document management software vendors deal with sensitive information relating to an organization, protection of IP is of paramount importance. Different laws exist in different countries to safeguard the IP of developers and protect them from piracy. For instance, the ACTA of 2011, which is a multinational treaty, was established to enforce international standards for the protection of IP rights.

Supplier costing

Engineering and development costs account for a large chunk of the total cost base. Employee costs account for nearly half of these costs. Maintenance costs, customer support costs, third-party software license fees, and stock-based compensation are other costs that contribute to these costs. It will become increasingly difficult for suppliers to access highly skilled labor at low costs from developing countries due to increasing competition and tightening of labor and immigration laws in major development centers such as the US, the UK, and Singapore.

Read more about the supply market landscape in the document management software market along with supply market insights, procurement insights, trends, challenges, and pricing models in SpendEdge’s upcoming report on the global document management software market.

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IR15

Use of Industrial Valves in Oil and Gas Industry Driving the Global Demand

SpendEdge Procurement Market Intelligence InfographicsLondon, Apr 17, 2018: The rise in investments in the application industries such as oil and gas are expected to drive the demand for industrial valves. The demand for industrial valves used in oil and gas industry is expected to grow at a CAGR of 6%–7% during the forecast period due to the establishment of new pipelines and operational refurbishment of oil refineries. In addition, increase in investments in wastewater management by application industries across the globe is expected to drive the demand for industrial valves.

SpendEdge’s latest procurement research report on the global industrial valves 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 facility management, 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.

“Industries across the globe are aiming at achieving operational excellence in terms of monitoring and controlling of equipment used in manufacturing and production processes through real-time data analysis and remote access. This is leading to replacement of conventional industrial valves with technologically advanced industrial valves, such as energy-efficient valves, automatic control valves, and smart valves.” – Bhuvaneshwari Udayakumar, facility management expert at SpendEdge.

Buyers find it challenging to select suppliers based on LCC analysis, which is one of the main procurement practices. In general, plant facilities consist of a significant number of legacy equipment, which affects the operational efficiency of industrial valves. As a result, issues in the assessment of LCC during procurement is causing problems for sourcing teams in this market.

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This procurement report on the industrial valves 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

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New Uses of Gelatin Driving the Growth in the Global Pharmaceutical Gelatin Market

SpendEdge Procurement Market Intelligence - Pharmaceutical GelatinLondon, Apr 09, 2018: There has been an increase in demand recently for marine gelatins such as fish gelatin, especially in regions where buyers demand non-bovine sourced gelatins, and in the countries where halal and kosher certifications must be followed. In addition to that, governmental support worldwide in the form of investment and regulatory approval for suppliers in emerging markets such as India has led to the growth of this category.

SpendEdge’s latest procurement research report on the global pharmaceutical gelatin 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 pharma and healthcare, 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.

“In the next two years, the overall consumption of pharmaceutical grade gelatin is expected to grow by 4%-5%. Increase in use of gelatin for pharmaceutical applications can be seen globally due to the discovery of unrealized uses of gelatin including its use in treatment of wounds, therapeutics, and surgical products.” – Bhuvaneshwari Udayakumar, pharma and healthcare expert at SpendEdge.

Most players in the industry procure cattle bones as a primary raw material for gelatin, ban on cattle slaughter in certain regions may affect the entire supply chain. This hampers the supply of bones to major suppliers, which in turn results in price fluctuations of the raw material. As a result, ban on certain raw material sources resulting in price fluctuations is causing procurement challenge in the pharmaceutical gelatin market.

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Request Free SampleThis procurement report on the pharmaceutical gelatin 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

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A Supply Market Overview of the Mercury Sulfate Market

Mercury sulfate is a metallic compound that is white, pale yellow, or beige in color, and is in powdered form. It is used is electrochemical cells and acts a good electrode. It exists in two forms mercury (I) sulfate and mercury (II) sulfate.

Request Free SampleUses and applications of mercury sulfate

Mercury sulfate is a highly toxic chemical and should be handled with care. Thereby, its use is more popular in industrial applications. Currently, it is highly used in the manufacturing of the solar cells to generate energy from renewable energy sources. Traditionally though, it has been used as a reagent and catalyst for the production of aldehydes. Currently, the use of mercury sulfate (I) as an electrode in lead-acid batteries to measure half-cell potentials is driving the growth of global mercury sulfate market.

The biggest market for mercury sulfate

North America is the most significant market for the consumption of mercury sulfate with the demand growing at a rapid rate with a CAGR of 2.5%. Such growth can be attributed to factors such as robust growth in end-user applications such as the production of solar cells and use of solar cells in medical devices. North America is closely followed by the APAC region where the chemical is used in consumer electronics industry to power the device with mercury-based battery.

Mercury Sulfate Production HubsLargest suppliers of mercury sulfate

The US, Canada, and Asian countries such as India and China are considered the largest producers of mercury sulfate. The North American market is dominated by producers such as Merck and Alfa Aesae. India and China have a cost advantage as they enjoy low-cost labor and availability of raw materials for manufacturing.

Market developments and trends

The current market is experiencing a high level of M&A activities. For instance, Merck KGaA acquired Sigma Aldrich, one of the major suppliers of mercury sulfate, which expanded the product portfolio and geographic reach of Merck. Such suppliers are also investing heavily in R&D activities to provide industry-specific grades based on end-use applications. Such activities will help buyers to adhere to regulations such as ECHA (EU), FDA (US), and EPA (US) based on end-user requirements.

Technological innovations

As seen in all manufacturing industries, automation has taken over in this market as well. Suppliers are adopting automation in their operational process to increase the capacity utilization rate and thereby, enhance the efficiency of the production process. Additionally, they are also implementing centralized IT software that helps suppliers to manage inventory levels, making it easier to supply mercury sulfate based on the stock-levels at different operational facilities.

Top Five Suppliers

Merck KGaA

Merck KGaA is an American multinational company and is among the largest pharmaceutical companies in the world. It thrives on manufacturing medicines, vaccines, biological therapies, and animal health products.

Revenue: $16.9 billion

Alfa Aesar

Alfa Aesar is a subsidiary of Thermo Fisher Scientific that manufactures products such as chemicals, metals, and life science products.

Revenue: $18.2 billion

Yogi Dye Chem Industries

Yogi Dye Chem Industries is an Indian manufacturer, exporter, and importer of pharmaceutical raw materials, bulk drugs, metallic salts, veterinary feed additives, and chemical fines.

Revenue: $50-100 million

Cfm Oskar Tropitzsch

Cfm Oskar Tropitzsch is a manufacturer of pharmaceutical and chemical intermediaries, which includes reagents, API’s excipients, and various metal compounds.

Revenue: $50-100 million

Shanghai Zhihua ChemTech

Shanghai Zhihua ChemTech manufactures and provides various chemical and pharmaceutical products and caters to the life science and pharmaceutical industries.

Revenue: $10-50 million

 

Read more about the supply market overview of the mercury sulfate market along with procurement insights, procurement challenges, pricing models, and technological advancements in SpendEdge’s upcoming report on the global mercury sulfate market.

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IR27

Growth of Energy Drinks Market Driving the Demand in the Sodium Citrate Market

SpendEdge Procurement Market Intelligence Infographics - Sodium CitrateLondon, Mar 27, 2018: The market for energy drinks and other health-based beverages has been growing rapidly. Sodium citrate is used in the product formulation in these beverages as an acidity regulator, flavoring agent, and acidulant in club sodas. The growth of the energy drinks market is expected to drive the demand for sodium citrate.

SpendEdge’s latest procurement research report on the global sodium citrate 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.

“Large F&B businesses, especially in the US and Western European countries such as Germany, the UK, and France, are increasingly looking to source non-GMO-based sodium citrate ingredients for product formulations. Increasing awareness about the health and environmental risks associated with consuming GMO-based F&B products will drive the demand for non-GMO based sodium citrate.” – A. Kowshik, chemicals expert at SpendEdge.

As China remains the most significant bulk-based producer and exporter of sodium citrate, end-user businesses across multiple geographies are exporting the citrate from the country. Though they may take advantage of low costs associated with production in China, they may incur high costs associated with transportation and logistics of shipping. These costs are likely to continue the upward trend as oil prices rise. As a result, procurement professionals are facing challenges regarding sourcing of sodium citrate.

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This procurement report on the sodium citrate 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


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