QuoteWerks 2022 Trends Report: Continued Concerns With Product Sourcing Rampant

QuoteWerks just came out with its 2022 Trends in IT Procurement report, which highlights the highs and the lows that managed service providers (MSPs), IT service providers (ITSPs) and other professional services companies are going through in the current channel. More specifically, the report provides a snapshot of the current buying activities in the technology community. It also highlights the merits of automated solutions, and pitfalls with product sourcing and logistics.

“The IT services industry has experienced a monumental shift over the past two decades,” the report states. “On the technology side, digital transformation and cybersecurity are garnering most of the attention and business discussions. However, while the impression that hardware is moving to a secondary position as more organizations transition to the cloud, the sales and support opportunities for PCs, tablets and other devices remain robust.”

Availability Dwindles, Prices Spike

It’s no secret that products are scarce and prices have jumped. This has left ITSPs to depend on supplier relationships to procure equipment for their customers. Almost half of respondents to the survey listed supply chain or sourcing delays as their biggest hurdle in the quote and proposal creation process. Other big pain points were product availability (19%), obtaining prices from vendors and distributors (9%), and creating configurations or determining what to quote (10%).

The answer to these industry setbacks and challenges? QuoteWerks vice president Brian Laufer says that the key lies in converting to modern business technology that supports automation. 

Automated Solutions

The measure of a successful professional services company today means employing a combination of industry-specific and general business tools to manage their operations and drive greater process efficiencies. Automation allows ITSPs to optimize productivity, employee satisfaction, client retention and the “customer experience.” 

QuoteWerks’ Brian Laufer

“We are a strong proponent of IT procurement and automation,” said Laufer. “Combined, it becomes easier than ever to source products and solutions from a supplier community that is more diverse — despite the challenges introduced by COVID-19 and ongoing supply chain shortages and disruptions.”

Distribution and Supply

One-half (50%) of the survey respondents work with at least four distributors. Almost 20% of MSPs, VARs and other IT providers have at least six suppliers to source from. Additionally, 39% of ITSPs use three suppliers. The numbers indicate that procurement opportunities have spiked for today’s ITSPs. This is with the rise of online marketplaces and vendor-direct websites that aid in the management of logistics and purchases. Also contributing to ITSPs’ procurement expansion are digital transformation and changing customer requirements. Not to mention supply chain challenges, pricing, product availability, and delivery problems.

QuoteWerks’ John Lewe

“This report gives channel company leaders perspective, allowing them to keep their finger on the pulse of the industry. Knowing the status of the arena in which we are operating is the foundational first step toward corrective action. Many IT service providers are overwhelmed with obstacles to fluid business operation, but there are certainly opportunities and solutions available. This is one of the many reasons we developed VendorRFQ,” said John Lewe, president, founder, and lead developer of QuoteWerks.

You can access the full report here.