Spend Pattern Analysis for a Leading Player in the Automotive HVAC Market – A SpendEdge Case Study
Engagement Overview: A leading automotive industry client specializing in the manufacture of automotive HVAC systems wanted to analyze their spending patterns to identify long-term cost-saving opportunities. To enhance the spend visibility and efficiency, the automotive industry client was looking at leveraging our spend analysis solutions. A detailed quantitative analysis of various categories within the supply […]
A leading automotive industry client specializing in the manufacture of automotive HVAC systems wanted to analyze their spending patterns to identify long-term cost-saving opportunities. To enhance the spend visibility and efficiency, the automotive industry client was looking at leveraging our spend analysis solutions. A detailed quantitative analysis of various categories within the supply chain was carried out to analyze spend patterns and develop an effective spend management framework.
About the Client:
The automotive industry client was facing challenges in devising an appropriate spend management framework.
How did SpendEdge Help the Client?
- Step 1: Collection of spend data
The first step revolved around the collection of spend data from several sources across the organization’s supply network.
- Step 2: Categorization and standardization of collected data
Once the spend data is collected, it is necessary to analyze the data so that it can be categorized into subsegments. Categorizing data into meaningful subsegments helps identify the source of spend. Also, identifying opportunities to standardize the spend helps uncover several newer cost saving opportunities.
- Step 3: Development of a spend management framework
The spend analysis experts at SpendEdge devised a three-step spend management approach that helped the automotive industry client to gain a holistic view of the spend pattern across their supply chain.
Key questions answered in this spend analysis engagement include:
Benefits of the Engagement:
The spend analysis solution offered by our experts helped the automotive HVAC manufacturer gain an overview of their spend patterns across their global supply network. Our solutions also assisted the automotive industry client in devising an appropriate spend management framework that helped them detect, gauge, and assess indirect and direct spend.
Why incorporate spend analysis based solutions?
Spend analysis has emerged as an effective solution to enhance savings and drive profitability in today’s increasingly competitive business environment. It involves the collection and categorization of spend data acquired from several disparate sources.
Also, spend analysis helps in the identification of new opportunities, thereby impacting the bottom line across industries. And with companies increasingly vying for new market opportunities, spend analysis turns out to be an essential factor that helps them remain competitive.
Analyzing spend patterns to identify savings opportunities seems to be a daunting task for several organizations. However, detailed spend analysis can help identify significant savings opportunities. But to develop a robust spend management framework, different aspects of the procurement spend need to be examined in detail. Moreover, implementing a spend analysis assessment as the main aspect of your business strategy helps enhance overall business value by uncovering various market opportunities.