Procurement research report on the supply chain insurance market provides procurement professionals with up-to-date information about market shifts and potential risks, as well as in-depth knowledge of products and services. This report provides a detailed analysis of the supply market, procurement challenges, and procurement best practices which can help in planning and executing category management activities. It also focuses on the cost-saving aspects of procurement and on providing insights that can lead to optimization of category spend.
Covered in this report
According to procurement analysts, governments in countries such as India and China are increasing their investments in electricity distribution projects to provide electrification to rural areas in their respective countries. Rapid growth of these economies has helped the governments of these countries to generate funds for these projects. For instance, the Government of India has allocated US$750 million for rural electrification between 2017 to 2018. This is leading to higher sales of transformers in these countries, as they are a key component of electricity distribution systems.
Step-down transformers are installed at several locations in an electricity distribution route to reduce the voltage from the initial voltage range to a voltage range suitable for home appliances. Moreover, the demand for UHVDC has also increased, wherein they are being installed to transmit electricity from power generation facilities to the nearest electricity grids. These increasing investments in electricity distribution projects in emerging economies are leading to the increase in demand for transformers, which is driving the global transformers market.
One of the procurement best practices for buyers is to shift from strategic sourcing to category management. Top electric utility companies are moving from strategic sourcing to category management, as it promises higher cost savings. Category management helps in selecting appropriate sourcing model. It also helps companies to develop a KPI-based cost savings process across the organization.
Some plans that can be implemented across the organization include the following:
- Creating cross-functional teams for improving sourcing process and consolidating requirements
- Aggregating demand for the product across the organization
- Including price and demand forecasting as a part of the procurement
- Sourcing data necessary for procurement from all relevant departments
- Power transformers: These transformers are big and used for high power transformation (greater than 33KV)
- Distribution transformer: Its used for the distribution of electricity at low voltage, less than 33KV in industrial and 440v-220v in domestic purpose. These generators are low efficiency at 50-70%, small size and easy in installation
- Measurement transformer: These transformers are used to measure electrical qualities like voltage, current as potential transformers and current transformers
- Protection transformers: These transformers are used in protection of predominantly electrical-based component/devices by high accuracy
- TAKEAWAY 01 - Market Overview
- TAKEAWAY 02 - Demand and Supply Snapshot
- TAKEAWAY 03 - Key Market Dynamics
- TAKEAWAY 04 - Supply Market Highlights
- TAKEAWAY 05 - Pricing Insights
- TAKEAWAY 06 - Procurement Insights
- Category Definition
- Research Methodology
- Category Spend Analysis
- Category Maturity by Regions
- Demand-Supply Shifts
- Regional Demand-Supply Snapshot
- Market Developments
- Regional Impact of Trends
- Key Category Growth Drivers and Corresponding Regional Impacts
- Major Category Growth Constraints and Corresponding Regional Impacts
- Key Current Technological Innovations
- Major Regulatory Frameworks
- Strategic Sustainability Practices
- Porter’s Five Forces
- PESTLE Analysis
- Supplier Operational Capability Matrix
- Other Prominent Suppliers by Region: Operational Capability Matrix
- Supplier Functional Capability Matrix
- Other Prominent Suppliers by Region: Functional Capability Matrix
- Key Clients/Partners
- Supplier Cost Breakup
- Supplier Positioning Matrix
- Pricing Models Snapshot
- Pricing Models - Pros and Cons
- Indicative Pricing
- Major Category Requirements
- Major Procurement Pain Points
- Category Sourcing Evolution Matrix
- Procurement Best Practices
- Cost-saving Opportunities
- Supplier Selection Criteria
- Category Negotiation Strategies
- SLA Terms
- Supplier Evaluation Criteria
- Category Risk Analysis
- Hyundai Heavy Industries
- Key Notes
The author of the report recognizes the following companies as the key suppliers in the Global Transformers - Procurement Market Intelligence Report: Siemens, GE, ABB, Hyundai Heavy Industries, TBEA.
Commenting on the report, an analyst from the research team said: “One of the key procurement challenges faced by buyers is the difficulty in evaluating expertise of service engineers.”
According to the report, one of the key growth contributors for the Global Transformers market is the integration of renewable sources-based power grids.
Further, the report states that major procurement challenge experienced by the buyers is the difficulty in evaluating expertise of service engineers.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains actionable insights to improve source-to-contract cycle performance in addition to a PESTLE analysis.