Globally, the automotive industry is witnessing impressive growth in their overall sales performance. Also, with the rising demand from emerging economies, the automotive industry is shifting toward better investments in R&D to improve their profit margins. To stay competitive and enhance their offerings in the manufacturing space, renowned manufacturers in the automotive industry are leveraging solutions that would help them in understanding their marketing spend. Spend analysis helps manufacturers gain real-time information on spend data and potentially identify opportunities across niche and target segments. Moreover, a robust spend analysis solution also helps manufacturers to effectively manage their maverick spend and create a robust supplier relationship.
To gain better visibility into the business spend, organizations in the automotive manufacturing space are approaching companies like SpendEdge. SpendEdge’s spend analysis solution helps businesses in the automotive space to understand the current state of spend and devise a medium-term spend strategy. In addition, spend analysis can further assist the client to improve their process efficiency and enhance supplier negotiation.
Procurement Pain Points and Insights Offered
A renowned automotive manufacturer was facing predicaments analyzing their marketing spend. The client wanted to gain an accurate, complete, and detailed analysis of their spending patterns. Also, the client wanted to leverage spend analysis to gain a better understanding of compliance issues and the market’s performance. The primary objective of the engagement was to identify the saving-opportunities and develop efficient sourcing, budgeting, and planning strategies.
With an eye on gaining better visibility into the spending patterns, SpendEdge’s spend analysis experts followed a comprehensive research methodology by compiling information form a wide array of primary and secondary sources. Also, the spend analysis experts further carried out qualitative and quantitative data analysis to further understand the spending patterns of the client in the automotive industry.
Also, SpendEdge’s spend analysis solution helped automotive industry clients to harness their limited capital resources and improve their return on investment. The solution further helped the client relatively stay ahead of the competition and improve efficiency in capital outlays.
Fundamental questions answered in this spend analysis study include
The Business Outcome
With the help of the spend analysis study, the client was able to profile the suppliers and develop robust recommendations in terms of savings and supply base consolidation. Furthermore, this solution also helped the client identify potential opportunities in the automotive space and effectively allocate their financial resources to reduce procurement spends.