Background
The client, a consulting firm, wanted to assist its end-client in gaining a comprehensive understanding of the Machine Vision (MV) and Barcode Scanner procurement processes and practices of top automotive firms and tier 1 OEM suppliers in North America and Europe.
The end-client, a prominent distributor within the MV and barcode scanning industry, wanted insights into supplier evaluation processes and procurement procedures. They also wanted to understand the primary purchase drivers and motivating factors behind considering and engaging with new suppliers.
Our Approach
We leveraged an integrated approach, involving exploratory discussions to gather high-level insights followed by a series of in-depth interviews to capture granular details.
- Held exploratory discussions with industry experts and thought leaders to understand the pressing concerns in procuring MV and barcode scanners, the typical procurement cycle and associated lead times.
- The insights gained from the discussions were used to develop a comprehensive discussion guide for capturing detailed responses during the in-depth interview phase.
- In-depth interviews where held with leading automotive buyers and tier 1 OEMs players (businesses with > US$1 billion in revenues), and targeted the following audiences:
-
- Group 1: Decision makers for sourcing MV and barcode scanner products, such as procurement/supply chain management and Heads of Technology.
-
- Group 2: Decision influencers, such as OT Management (Plant, Operations, Engineering) and IT Management.
- The in-depth discussions gathered insights into:
-
- Preferences for MV and barcode scanning applications.
- Procurement and supplier selection processes.
- Unmet needs with incumbent suppliers.
- Associated supply chain risks.
Why Phronesis?
We have:
- A robust network of automobile industry experts across different functional areas such as procurement/supply chain, IT, strategy and operation management.
- An in-house team of subject matter experts capable of engaging respondents in deep and thought-provoking discussions.
- Strong technical know-how and expertise in executing projects that involve collecting hard-to-find and sensitive information.
Outcome
The study helped the client by providing data-driven insights into:
- The key purchase drivers of Machine Vision (MV) and Barcode Scanners in the automobile industry.
- The procurement process, key stages and lead time for new supplier evaluation.
- The supplier evaluation process.
- The key information sources (external and internal) used in supplier evaluation.
- The criteria for measuring incumbent suppliers’ performance.
- The primary decision drivers that motivate companies to switch to new suppliers.
- Supplier mapping to understand their primary, secondary and tertiary vendors, and associated supply chain risks.
