Lately, the construction industry has witnessed a steady growth, primarily due to the major works occurring in high-profile projects including the electricity, water and sewerage, and rail sub-sectors. However, according to the supplier relationship management experts, firms operating under razor-thin profit margins are expected to struggle with rising material and labor costs. As a result of these challenges, players operating in the construction industry space have started opting for supplier relationship studies to build better relationships with the suppliers. Moreover, these studies offered by SpendEdge, help firms in this industry space to gain a superior competitive advantage over their peers.
The Procurement Pain Point and Insights Offered
A global construction industry client wanted to devise a superior relationship strategy with suppliers in the market space and create a win-win situation and increase the profitability of both parties. The client also wanted to design a robust value creation framework for a better customer and supplier relationship. Furthermore, the client wanted to gain a comprehensive understanding of the latest developments and trends in the market and identify the potential supplier risks across the supply chain.
To cater to the specific category requirements of the client, the supplier relationship management experts carried out an in-depth two-step research methodology, which included qualitative and quantitative assessments. During the course of this supplier relationship engagement, the construction industry client gained insights on the control points in the value chain that was currently being captured. Additionally, the client was provided with an explicit representation of the merits and prioritization of the opportunities with the help of a robust portfolio analysis.
Fundamental questions answered in this supplier relationship management study include
This supplier relationship management engagement helped the construction industry client build a superior competitive advantage in the market space. Additionally, the client was offered suggestions on superior supplier relationship strategies to seize opportunities.