The number of companies will continue to rise, generating more business for service providers. However, greater competition from similar suppliers as well as from technological substitutes will result in more slowly growing prices.
Los Angeles, CA (PRWEB) December 11, 2013
Buyers of inventory accounting services have a buyer power score of 4.2 out of 5. Scores closer to 5 exhibit a higher level of buyer negotiation power. “Negotiation power primarily improved in the three years to 2013 as competition among suppliers increased and substitute products and services became more accessible,” says IBISWorld analyst Aileen Weiss. Additionally, growth in industrial production and corporate profit resulted in bigger inventories, creating a greater need for services and a rise in prices. However, buyers are expected to maintain high negotiation power as new technology and in-house options become easier to apply.
The economic recovery has led to greater business and consumer confidence, tempting consumers with more disposable income to increase their number of purchases. As a result, industrial production has risen to meet growing demand, causing inventories and corporate profit to grow as consumers purchased more. Thus, buyers have been more likely to use inventory accounting services to focus on their actual business operations. This increased demand has caused prices for services to increase gradually. Though prices have risen, buyers have still been in a favorable position as improving inventory technology has become less expensive and more readily available. In the past, more complex inventory jobs with a wide range of goods or highly specialized products required inventory counting specialists, which limited the number of suppliers from which buyers could choose. In the next three years, however, new software and more user-friendly scanning devices will allow buyers to train employees to complete the inventory count. According to Weiss, Bringing services in-house creates more competition for inventory service suppliers, forcing them to lower their prices. As such, buyers maintain negotiation power.
Ultimately, buyers should select a service provider that understands their business and specializes in that particular type of inventory. Buyers should consider substitute services for smaller or less specialized inventories and whether employees could be trained to complete the inventory count themselves. High competition will allow for more negotiable prices for buyers of these services. For more information, visit IBISWorld’s Inventory Accounting Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of inventory accounting services, which is the body of accounting that deals with valuing and accounting for changes in inventoried assets. Inventory accounting service providers count, inventory and collect data on finished goods, work in process and raw materials at locations including retail stores (i.e. convenience stores, clothing stories and liquor stores), groceries, warehouses, educational institutes, hospitals and pharmacies. This report does not include accounting services such as audit, cost, financial, payroll and tax accounting as well as bookkeeping and billing services. It also does not include inventory software systems.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.