Market intelligence helps Pantellos customers take advantage of favorable conditions.
Pantellos recently launched collaborative sourcing initiatives to help utility customers save on two strategic commodities—tires and gas meters.
The initiative for automobile and light-duty truck tires kicked off in the fall. Several utilities have joined together to combine their tire requirements in a single RFP. The combined requirements will allow suppliers to spread their overhead costs across a much larger volume, creating opportunities for significant volume discounts. The number of tire manufacturers with national distribution capabilities provides an adequate supply base for competitive bidding. The Request for Proposal (RFP) representing five utilities was recently distributed to bidders. For more information, please contact Lanny Harrison at Pantellos.
Launched in November, the collaborative sourcing initiative for gas meters includes residential, commercial, industrial diaphragm, rotary meters and regulators. Pantellos issued an RFP based on the requirements of several utilities in mid-December and will receive responses on January 16, 2004. Current market conditions should allow participants to negotiate first-cost savings, as well as a reduction in total cost of ownership. For more information about the gas meters initiative, please contact Larry Combs at Pantellos.
In the past, Pantellos has often launched collaborative initiatives to assist utility customers with sourcing expired contracts. This process has recently been enhanced to time sourcing initiatives with market conditions. Overcapacity and weak demand characterize the current markets for both tires and gas meters. Improvement in the overall economy is expected to drive up the cost of raw materials, however, leading to price increases in 2004 and 2005. For this reason, now is an optimal time to negotiate new, multi-year contracts for these commodities. Suppliers who participate in these collaborative initiatives have an opportunity for larger sales volumes.
Pantellos Market Intelligence Services provide ongoing high-quality research into strategic, high-spend commodities and services. Detailed Market Intelligence Reports are currently available for:
- Wire and cable
- Polyethylene pipe
- Wood poles
- Electric meters
- Distribution transformers.
- Automobile and light-duty truck tires
For more information on Market Intelligence Services or to obtain one of the Market Intelligence Reports, contact your Pantellos Development Manager or Matt Worth at Pantellos.
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