Globally, the chemical industry is very sensitive to pricing changes, owing to the rising need to curtail costs among the target audiences. To effectively keep track of the expenses, leading procurement organizations in the chemical industry have started leveraging robust spend analysis services. In the chemical industry, devising an effective spend analysis solution assists the client to gain accurate and actionable insights into the spend drivers; thereby, increasing saving opportunities. Furthermore, organizations can leverage the use of spend analysis to understand the spending patterns of the vendors and identify suppliers that provide optimum value to the producer.
With years of expertise in offering a plethora of services, SpendEdge’s spend analysis experts help clients identify the suppliers and the areas providing the greatest sourcing opportunities for spend reduction. The solution offered also helps the clients to standardize, normalize, and enrich the spend information and identify exceptions. Furthermore, with the aid of SpendEdge, clients can uncover the strategic sourcing opportunities and allocate resources accordingly.
The Procurement Pain Point and Insights Offered
A renowned client in the chemistry industry was facing predicaments reducing procurement costs across the supply chain. The client wanted to understand the spend pattern and the category and supplier pattern analysis. Furthermore, the client wanted to gain strategic insights into the current state of spend to devise an effective short/medium term spend strategy.
To effectively assess and select suppliers, the client approached SpendEdge’s team of spend analysis analysts. SpendEdge’s team of analysts followed a blended approach comprising of interviews and discussions with leading stakeholders in the chemical industry. Furthermore, the client also aggregated information from various proprietary sources such as paid industry databases, company presentations, industry forums, and newsletter in the chemical industry.
After obtaining the complete information, SpendEdge’s spend analysis solution helped the client devise state-of-the-art tools and technology to provide comprehensive spend solutions. Also, the spend analysis solution helps the client cleanse, validate, enrich, and classify data, thereby delivering better-visibility in the spending solutions across the enterprise.
Key questions answered in this spend analysis study include
With the help of the spend analysis solution, the client was able to streamline their strategic sourcing plan, reduce maverick spend, and improve cost savings. Moreover, the client gained knowledge of historical and current market prices, aggregated spend by commodity, and increase visibility into their spending patterns.