Supply has dropped and prices have risen

Summing up the preliminary results of the outgoing 2022, 80% of Russian customers noted a reduction in goods, works and services offered by suppliers.

This is evidenced by the data of a survey in which more than a hundred Russian corporate customers took part, conducted by Roseltorg (JSC Unified Electronic Trading Platform) together with the Association of Managers. The results of this study were presented to the participants of the round table “Procurement: results of 2022 and prospects”, which was held in the Civic Chamber of the Russian Federation, by the Deputy General Director of Roseltorg, Chairman of the Procurement Management Committee of the Association of Managers Viktor Simonenko:

“When asked if the supply of goods, works and services in the procurement market of 2022 has decreased, 80% noted a decrease in the market: i.e. the number of suppliers and their supply has decreased (for some it is significant, for others not so much, but overall it has fallen). When asked if you noticed a change in price, customers mostly responded that the price offered by suppliers increased by more than 10% on average. Only 23% did not notice the increase in prices. According to customers, prices, first of all, increased for goods. This is explained by the fact that works and services are our internal resources, and goods (especially those that cross the border) are growing in price.”

If we talk about competition at the auction, then according to the estimates of 25% of customers in 2022, it definitely decreased; another 25% believe that it has decreased, but not significantly. Only 5% of respondents indicated an increase in competition, and another 15% did not notice any change in the level of competition at all.

“This difference in estimates is most likely due to industry specifics,” Viktor Symonenko commented.

35% of the survey participants indicated that the number of failed purchases had definitely increased, since in the competitive procedure the supply of goods or the performance of works or services was offered by one supplier. Another 30% of respondents said that the number of failed purchases increased, but not significantly.

75% of customers complained about the increase in the number of terminated contracts in 2022 (only 25% of respondents did not notice any changes in this indicator).

When asked how often suppliers ask to apply force majeure circumstances in a contract (when, due to circumstances beyond their control, they can request a change in conditions, prices, terms, or even termination of contracts), 30% answered that often; 65% – rarely; 5% have never experienced this.

“25% of customers noticed an increase in contract execution courts in 2022. Another 5% said that there is an increase, but it is insignificant. If we talk about goods, then most often litigation arose due to the replacement of the nomenclature, when suppliers came up with a proposal to replace the nomenclature in one way or another, and for customers this became a problem, ”explained Viktor Symonenko.

When asked how you assess the quality of supplied analogues and substitutes for goods that have disappeared from the Russian market, 20% of respondents answered that they are worse than the originals; 20% of customers did not notice the changes; 25% indicated that the “zone of uncertainty” has increased (they take a long time and it is not known what they will bring); 5% noted that the quality of analogues and substitutes corresponds to the originals, but the price has become higher.

When asked how you assess the difficulties associated with restrictions on foreign exchange transactions, 45% of companies indicated that they experienced difficulties, but found a way out of the current situation in a short time; 25% did not experience difficulties at all, and another 30% found a way out only after a significant period of time.

Sergei Ishkov.

Photo by Kirill Zykov / Moskva Agency