Automotive Gears Procurement Intelligence Report Identifies Pricing Models and Their Functionality to Optimize Procurement Expenses in This Market | SpendEdge

SpendEdge has been monitoring the global automotive gears market and the market is poised to experience spend growth of more than USD 40 billion between 2017-2022 at a CAGR of over 5%. Request free sample pages.

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Insights into the automotive gears market price trends

  • Extreme volatility in the price of steel that is one of the key raw materials used to manufacture automotive gears will directly impact automotive gears procurement price.
  • Suppliers are investing heavily in research and development activities to manufacture more fuel-efficient gears, which, on the other hand, is increasing their production costs. This is expected to have an inflationary impact on automotive gears procurement price.

Pricing Models that Buyers must Implement while Entering into a Contract with Suppliers

Unit-based pricing is the most widely adopted pricing model in the automotive gears market.

  • Unit-based pricing model- This is ideal for buyers who require a high degree of customization for gears. Buyers can reduce the cost per unit, including transportation and installation expenses, in case of high-volume requirement.
  • Cost-plus pricing model- The adoption of this pricing model will provide buyers opportunities to reduce prices through negotiations based on supplier margins. It offers high transparency in prices being charged by suppliers which aids buyers to optimize their automotive gears procurement expense.

Insights into strategies that will help buyers optimize their automotive gears procurement spend

  • Considering the price movement trends in this market, it will be prudent of buyers to procure from suppliers who are located in low-cost countries such as India, China, Brazil, and Indonesia apart from Eastern Europe countries. The availability of low-cost labor and raw materials will significantly reduce the overall automotive gears procurement price.
  • Buyers must focus on implementing JIT inventory strategy. In JIT inventory management, automotive gear units are delivered to the buyers' premise only when they are required, thereby eliminating their costs associated with holding and managing inventory. To ensure JIT inventory strategy, buyers must negotiate with suppliers to provide vital products only upon realization of their requirement.

The automotive gears suppliers enlisted in this report

This automotive gears procurement market intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies.

  • ZF Friedrichshafen
  • Magna International Inc
  • Continental
  • Bosch
  • Schaeffler

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