A renowned auto parts manufacturer wanted to identify and benchmark the best practices. To increase customer satisfaction and diminish bad debt write-offs, the client approached SpendEdge to devise a comprehensive approach that would help them identify and benchmark the procurement best practices. A comprehensive quantitative analysis of various categories within the supply chain was carried out to identify and benchmark the procurement best practices to be inculcated in their business.
About the Client
A leading player in the automobile industry space specializing in the manufacturing of auto parts with business units spread across the globe.
The client was facing challenges in benchmarking the best practices in the auto parts manufacturing industry.
How did SpendEdge Help the Client?
Step 1: Gathered and analyzed data to identify performance gaps
This step spun around the analysis of gathered data to determine the extent to which the client’s performance lags the best in each segment. The implementation of this step offered a clear picture of the client’s business processes in comparison with their peers.
Step 2: Determined the peer organizations and processes to be benchmarked
This step involved the accurate evaluation and determination of companies to be benchmarked. It acted as a cornerstone for the entire auto parts industry procurement best practices benchmarking process.
Key questions answered in this case study
Benefits of the Engagement
With the help of SpendEdge’s procurement best practices engagement, the auto parts manufacturing client identified the key performance metrics and fine-tuned their strategies to boost savings. Additionally, the client identified the success factors that uncovered major opportunities for improving their services offerings in the global automobile industry.
Why incorporate procurement best practices?
Today, procurement best practices benchmarking has become an integral part of strategic planning and operational improvements. Identifying and benchmarking procurement best practices help companies to bridge gaps and improve performance using quantitative and qualitative information collected from various industry-specific resources.
Procurement best practices enable organizations to increase competitiveness and enhance value from a customer’s perspective. Moreover, if an organization is on the lookout for an objective to enhance market growth, procurement best practices benchmarking is the ideal approach to identify alternative and feasible ways to enhance performance.