The Procurement Pain Point
The client, a global engineering service provider, approached SpendEdge to engage in category management study to get an in-depth understanding of the category Moreover, this market intelligence engagement on category management helped the client get detailed supply market insights and understand the market trends, drivers, challenges, top supplier profiles, and supplier engagement models.
The primary objective of this category management study was to help the client gain insights on category essentials in specific domains such as key parameters in selecting suppliers, best practices for supplier relationship management, procurement best practices, and engagement practices for buyers. Furthermore, this study helped the client tackle challenges such as increasing complications related to resource allocation, declining profit margins, increasing operational costs, and growing needs for technological investments.
To gain an in-depth understanding of category best practices, SpendEdge’s team of category management experts followed a blended research methodology consisting of primary and secondary research followed by discussion with category experts about a detailed overview of the current category sourcing and procurement strategies. In addition, category experts also provided insights on the best-in-class industry benchmarks, assessment of market trends and supplier engagement models, and carried out a gap assessment to identify the key areas of improvement.
Procurement Insights Offered and the Outcome
To address the category management requirements specific to the needs of the client – a global engineering service provider – SpendEdge deployed a team of FTE analysts with expertise in category support services and domain expertise. The process helped the client improve cost saving effectiveness and develop robust strategies based on the best benchmarking standards in the industry. Additionally, the analysts offered category-specific insights on four major areas of product design, plant automation services, plant design and product engineering, and enterprise and management. Moreover, we analyzed the current sourcing and procurement trends in the market.
In just five weeks, the client identified category market insights, market size and segmentation, supplier competencies, and cost saving opportunities through assessment of current spend practices and improvement areas. Additionally, the study also helped the client with improved category snapshots and supplier negotiations, successful implementation of category management strategy for the vital spend areas, and capitalized on supplier performance through implementation of supplier relationship management.
This category management case study offers information on how we helped a global engineering services company get a detailed understanding of the category.
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