A leading agricultural biotechnology firm was looking at devising an effective solution that would help them answer some essential procurement questions regarding – distribution centers, purchasing managers, and SCM. To do so and to achieve the onsite procurement goals the biotech industry client approached SpendEdge to help them leverage procurement market intelligence based solutions. A detailed quantitative analysis of various categories within the supply chain network was carried out to identify and benchmark the biotech industry best practices.
About the Client:
One of the fastest growing agricultural biotechnology company, employing over 900 professionals across various economies.
The agricultural biotechnology client was facing challenges in achieving their onsite procurement goals.
How did SpendEdge Help the Client?
- Step 1: Developed a procurement market intelligence framework
The framework helped the client identify various sub-categories and assess where they needed intelligence the most. This further resulted in the development of strategies to best acquire the levels of information based on costs and expected value.
- Step 2: Built a robust market intelligence based unit for frequently sourced categories
It is essential to devise an internal intelligence unit for most important categories in terms of spend and criticality to the business. To do so, firms have to seek advice from procurement experts to focus exclusively on particular market segments. Agricultural biotechnology firms that have already made such investments can further enhance them by devising a framework for capturing and sharing market intelligence across the supply network.
- Step 3: Leveraged basic intelligence capability for the other categories
A basic intelligence capability that leverages real-time market activity is likely to be sufficient for categories that are not frequently sourced. By doing so, agricultural biotechnology firms can develop a basic process to capture intelligence from frequent sourcing activities and then populate the supplier database with information about both supplier capabilities and their past performance.
Key questions answered in this procurement market intelligence engagement include:
Benefits of the Engagement:
The procurement market intelligence engagement helped the agricultural biotechnology company to leverage category specific intelligence and enhance business efficiency. Our procurement market intelligence experts worked as an extension of the firm to identify the success factors that uncovered major opportunities for improving their sourcing strategies.
Why incorporate market intelligence in procurement?
With the rise in end-market volatility and growing financial pressures to do more with less information. Organizations across industries are starting to realize the need to employ a best-in-class procurement model. However, developing a best-in-class procurement model by incorporating market intelligence capabilities posses several challenges even for the most resourceful organizations.
Moreover, as procurement increasingly shifts focus from profit margin expansion to that of a strategic enabler of business growth, procurement leaders can maximize benefits by leveraging market intelligence for making appropriate business decisions on sourcing strategies.
It is quite evident that the role of market intelligence as a strategic business enabler in procurement is now bigger than ever. This is driving world-class biotech industry firms to implement procurement intelligence and deliver breakthrough business value. However, it is up to the individual organization to either build this capability with internal resources or partner with third-party providers.
To know more about our procurement intelligence solutions
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