Spend Management: Reducing Purchase Spend for a CPG Industry Client
Engagement Overview A leading CPG industry client wanted to address the challenges emerging due to inefficient spend management. As a result, the client wanted to leverage SpendEdge’s spend management engagement to enhance spend capabilities across their supply network and drive topline revenue growth. During the course of this engagement, the spend management experts at SpendEdge […]
A leading CPG industry client wanted to address the challenges emerging due to inefficient spend management. As a result, the client wanted to leverage SpendEdge’s spend management engagement to enhance spend capabilities across their supply network and drive topline revenue growth. During the course of this engagement, the spend management experts at SpendEdge devised an all-inclusive approach which consisted of primary and secondary research methodologies.
Additionally, a detailed quantitative analysis of the various spend factors across the CPG industry client’s supply network was carried out to help them identify, evaluate, and prioritize each factor contributing to indirect spends.
About the Client
The client is a leading CPG industry player in the United States.
The CPG industry player was facing difficulties in enhancing their spend management capabilities across their global supply network. Additionally, the client wanted to tactically address the burgeoning nature of their inefficient spend management system.
How did SpendEdge Help the Client?
Step 1: Collected and categorized organizational spend data
Today it is essential for organizations in the CPG industry space to collect and categorize spend data from a multitude of sources supply network to efficiently identify irrelevant sources of spend. By doing so, establishments can effectively decrease and overcome the inexorable circumstances caused by an ineffective spend management system.
Step 2: Devised a flexible spend management framework that aimed at reducing the organizational and supply risks
The dynamic nature of the supply chain called for the refinement of the CPG industry client’s spend management capabilities. The development of a proactive spend management framework required a combination of measures, which included – changes to the organization’s data management structure, superior spend management strategies, and the use of advanced spend management frameworks.
Key questions answered in this spend management engagement include
Benefits of the Engagement
With the help of SpendEdge’s spend management engagement, the CPG industry client enhanced the visibility of their supply chain processes by establishing an interconnected relationship between different tiers of the supply network. Additionally, the client developed a holistic spend management approach. The approach accounted for major changes in organizational processes, data management, and data governance, which helped them address changes in market trends including the changes in regional and global demands.
Why incorporate spend management solutions?
With the ease of availability of advanced technological solutions like spend management systems, it is now possible for organizations across the globe to bring about massive cultural transformations as a fundamental part of their business plans. Click To Tweet
While leading CPG industry establishments turn to robust spend management solutions to reduce purchasing spend, they also understand that a precise spend management framework relies on the reliability and quality of the underlying spend data. This case study on spend management from SpendEdge concludes that a successful spend management system must be based on a robust data management foundation.