Supply managers make assumptions about the future of supply markets every time they contract with suppliers, or choose not to. Understanding the outlook for key variables of a capital equipment supply market, such as lead time, capacity, price, and market competitiveness, is critical to deciding the right price and contract term, yet few companies have a market intelligence process or reliable data. Even fewer agree on the right way to use this information if it exists. Boston Strategies International's supply market analyses highlight:

  • Quarterly and yearly projections of demand, capacity, lead times, and prices
  • Five year outlooks
  • Coverage of suppliers in markets such as China, India, and Eastern Europe
  • Market shares, concentration ratios, and other indicators of competitive intensity

Custom market analytics

Boston Strategies International’s research leverages our proprietary models and frameworks that have been built and maintained by our world-class economists, and blends that quantitative information with primary research to produce a granularity of information that far surpasses what is available through major subscription research firms or other consulting firms. These include, for example, our:

 

These models deploy statistical and quantitative methods for a variety of objectives, for example:

  • + -

    Stochastic Methods (for Concept Screening and Major Design / Technology Selection)

    • Cost/capacity curve simulation
    • Scale of operations factor models
    • Factoring methods including Chilton, Guthrie, & Miller
    • Benchmark databases
    • Scatterplot analysis modeling
    • Regression fitting

  • + -

    Deterministic Methods (for Budget Authorization / FID)

    • Material cost databases & labor rate schedules
    • Simulation modeling
    • Econometric models
    • Linear programs
    • RFP/Bidding engine

  • + -

    Hybrid Methods (for Bid Evaluation / Negotiation)

    • Economies of scale modeling
    • Economies of scope modeling
    • Bid comparison landed cost modeling

We are also capable and experienced in using applications developed by vendors of off-the-shelf cost estimating and optimization.
 

"MarketOutlook" Custom Market Intelligence

Suppliers, Prices and Forecasts

BSI’s "private-label" supply market intelligence portal provides access to the company’s library of research reports, and easy drill-down access to thousands of charts, tables, and graphs. The "Suppliers" section contains profiles of suppliers in every corner of the world, as well as historical and forecast price indices for hundreds of specialized purchased materials and services.

Analysis and News

BSI’s continuous stream of articles, news, and analyses, married with procurement decision tools, improves the accuracy and the timeliness of strategic sourcing decisions. The content is updated continuously with new research, supplier profiles, and benchmarks. A configurable databank allows real-time downloads of market data and forecasts, Online decision tools improve the consistency and accuracy of important decisions by helping with commodity-specific cost inflation calculators, supplier qualification tools, supplier audit templates, lifecycle cost calculators, contract Term optimizers, and hedging and options evaluators.

Benchmarking
Interaction with peers who have successfully implemented supply chain improvements, accelerates the realization of the full potential of market intelligence and strategic supply chain management. Connect with peers on topics of interest and importance.

 

To access MarketOutlook, click here.

 
BSI routinely compiles detailed data and specific, timely procurement recommendations on many purchased materials and services, including these for example:
  • Acids
  • Air Compressors
  • Bearings
  • Blow-Out Preventers
  • Cable
  • Catalysts
  • Centrifugal - ANSI Pumps
  • Centrifugal - Engineered Pumps
  • Chemicals
  • Coal
  • Compressors
  • Contract Mfg
  • Couplings
  • Crude Petroleum
  • Design & Testing
  • Detection Systems
  • Distribution & Wholesaling
  • Downhole Tools
  • Drillbits
  • Drilling
  • Drilling Fluids
  • Electric Motors
  • Electrical
  • Electronics
  • Energy Distribution & Utilities
  • Field Separation Systems
  • Filtration Equipment
  • Fire Suppression Equipment
  • Flow Meters
  • Gas Turbines
  • Gears
  • Generators
  • Hardware
  • Heat Transfer
  • Hydraulic Systems
  • Industrial Batteries
  • Industrial Gases
  • Instrumentation
  • Intrusion Security Systems
  • Iron & Steel
  • Lamps & Fixtures
  • Logistics
  • Lubricants & Base Oils
  • Maintenance & Repair
  • Membranes and Membrane Systems
  • Metals
  • Microturbines
  • Mill Rolls
  • Minerals & Mining
  • MRO
  • Natural Gas
  • Oil & Gas Production Chemicals
  • Ores
  • Paper & Packaging
  • Parts & Equipment
  • Pipe Fittings
  • Pipeline Drones
  • Plastics
  • Positive Displacement Pumps
  • Power Transmission
  • Printing & Publishing
  • Process Centrifugal Compressors
  • Process Reciprocating Compressors
  • Professional Services
  • Pumps
  • Respirators
  • Rubber
  • Scrap Metal
  • Seals
  • Spill Control Systems
  • Steam Turbines
  • Submersible Pumps
  • Surface Equipment
  • Switchgear
  • Transformers
  • Transportation
  • Tubulars
  • Turbine Parts & Service
  • Turbines
  • Uninterruptible Power Systems
  • Vacuum Pumps
  • Valves
  • Vessels
  • Water Filtration Media

 

Custom Market Analytics Case Studies

  • Industry: Oil and gas
  • Key Challenge: Supplier price increases cost inflation, long lead times, production shortfalls
  • Why BSI was Selected: Thought leadership in supply risk mitigation, forecasting track record.
  • Project Scope: 50 sourced categories in 10 commodity groups, complex engineered equipment
  • Project Approach: Economic modeling, market intelligence, optimization analysis
  • Operational Benefits: Quicker delivery of equipment, lower lead time, updated technologies
  • Financial Benefits: 30%+ higher profit, 5%+ lower upfront cost,  lower inventory cost, lower operating cost

Click here to read the full case study on Supply Risk Mitigation for an oil and gas company.


  • Industry: Chemicals
  • Key Challenge: Shortage of material caused by regulatory and tax policies
  • Why BSI was Selected: International industrial materials supply chain expertise
  • Project Scope: Sourcing of selected rare earths
  • Project Approach: Screened suppliers, international distributors, importers and partners; evaluated alternatives; and developed a plan to use alternative sources.
  • Operational Benefits: Immediate supply assurance through the use of a highly qualified backup supplier; long-term price stability through development of two other strategic suppliers.
  • Financial Benefits: Sustained production and profit from ongoing business while increasing purchasing leverage. Consulting payback of 25 to 1.

Click here to read the full case study on Supply Risk Analysis and Mitigation for a chemicals company.

 

Featured BSI Articles on Supply Risk Mitigation

 
Supply Chain Risk Jumps 8%
Are you prepared for a multi-pronged supply interruption? Have your supply chain operations been affected by the uprising in the Middle East? The earthquake in Japan? The unavailability of rare earth from China? They have, whether you know it or not.

To read our article on “Supply Chain Implications of Unrest in the Arab World,” click here.


Swagging the Biggest Decisions You Make

Sourcing is getting more strategic as buyer and supplier industries consolidate, leaving fewer players on either side. On the buy side, mergers and acquisitions have reduced the number of buying organizations and buyer lean management practices have reduced the number of key suppliers they deal with. On the supply side, many suppliers are refocusing on more profitable customers to keep margins up and some are exiting unprofitable businesses and shedding unprofitable customers. The result: fewer buyers are doing business with fewer suppliers. Is this a risk or an opportunity, and how should it change the way you do business?
© 2005 Boston Strategies International (formerly Boston Logistics Group)

Click here to download the article.


Mitigating High Raw Material Prices

Raw material price volatility has hit manufacturing companies hard in recent years. Prices of metals, wood products, paper, packaging, and fuel—just to name a few commodity-based raw materials—have all increased markedly and been more volatile than in the past. Read this article for three tips that will help you reduce the cost and risk of raw material price increases.
© 2005 Boston Strategies International (formerly Boston Logistics Group)

Click here to download the article.


Large-Bore Antifriction Bearings Cost and Pricing Analysis

The lead time for large bore bearings has become so long that purchasing managers are scrambling for a solution. This study quantifies and forecasts capacity, lead time, and prices for large bore bearings from 2008 to 2014, providing forecasts of capacity, lead time, cost structures and prices by region and bearing size. It also analyzes capacity utilization, providing detailed listings of new capacity additions, and it benchmarks capacity utilization and capacity reservation practices.
39 pages, 13 charts, 1 table, and 8 diagrams, © 2008.

To request the article please contact us.


The Outlook for Motors and Drives: Strategies for Success

For manufacturers that were paying attention, the recent economic crisis gave aggressive motor and drive manufacturers a unique opportunity to gain competitive advantage. For those that weren't, the crisis ran hard and deep and may have caused a serious setback. What is the best way to gain competitive advantage during this period of realignment that will generate ongoing benefits when the market stabilizes? This article provides seven tips for what you can do to ensure your company’s success.Click here for free download.


To request more information on our firm or our products and services, please contact us.