CASE STUDY

How Spend Analysis Helped a Leading Dental Care Provider Regain Internal Control of Spend Data – A Healthcare Case Study by SpendEdge

Jul 25, 2018

Engagement Overview:

A leading healthcare industry player, offering dental care services was looking at devising a strategic approach for effective capital management. The client approached SpendEdge to leverage their expertise in spend analysis in order to transform their bottom line and bolster a strategic vision across their dental care business units. A detailed quantitative analysis of various categories within the supply chain was carried out to analyze spend data and develop an effective spend analysis framework.

About the Client:request proposal

The client is a well-established dental care services provider.

Business Challenge:

The dental care services provider was facing an operating loss of over 7 million, which resulted in a negative operating margin of 2.3%. As a result, they were looking at employing an effective approach to regain internal control of spend data.


How did SpendEdge Help the Client?

  • Step 1: Identification and collection of relevant spend data

The first step involved the process of identification and gathering of spend data from different business units. The gathered information included accounts payable, general ledger data, and data from e-procurement systems.

  • Step 2: Classification of the gathered spend datarequest proposal

Classification of spend data is the step that follows data collection and it involves the grouping of the collected spend data to standard categories. Classification codes are used to separate data and to make them distinguishable. Regardless of the classification standards employed the main aim of this step was to develop a spend data file with each spend category linked to a unique group.

  • Step 3: Detecting the non-addressable spend categories

Since all the spend categories will not be available for spend optimization, it is essential for a company to identify categories which can be optimized. Some of the spend categories of the client which did not fall under the optimizable category included governmental charges and taxes.

This step revolved around the identification and segregation of addressable and non-addressable spend categories. Also, identifying and clustering addressable spend data into categories reflect how individual supply markets function and help create a link between the related spend categories and the associated supply markets.

  • Step 4: Development of a tailored spend analysis platform

The spend analysis experts at SpendEdge devised a comprehensive approach that helped the dental care client to gain a holistic view of spend categories. It also enhanced spend visibility and helped drive overall savings by a considerable percentage. It also enabled them to turn their negative operating margins into a positive scenario.

Request Demo


Key questions answered in this spend analysis study include:

Dental care


Benefits of the Engagement:

The solutions offered by SpendEdge’s spend analysis experts helped the client identify the spend categories that have the most potential for delivering benefits to their organization. This spend analysis engagement also revealed major issues of concern that affected the client’s overall profit margin.

The developed spend analysis framework enabled the dental care services client to enhance spend visibility across different supply chain categories. Our spend analysis experts also assisted the healthcare industry client in improving their spend management capabilities which, in turn, helped them drive savings.Request Demo

Why is spend analysis essential in the healthcare industry?

There are substantial opportunities hidden in the spend data generated by typical spend management systems and spend analysis which enables organizations to extract valuable insights from raw spend data. SpendEdge’s spend analysis solutions are designed to offer greater visibility into the organizational spend data; thereby, enabling market leaders to visualize their spend patterns across business segments.

Moreover, our methodical approach to spend analysis tied with years of consulting expertise and technical proficiency can help convert raw spend data into strategic sourcing opportunities to drive savings in any multifaceted industrial segment such as the healthcare industry.


Our Findings:

In this spend analysis engagement we helped a dental care services provider enhance their spend management capabilities by devising a robust four-step spend analysis framework. Such an approach can also be adopted by other industry players to maximize the potential of their supply chain functions.

With healthcare industry leaders increasingly focusing on improving their spend management capabilities to maximize profits, it is also essential for them to redefine their strategies to sustain the competitive pressure. So, what are you waiting for! Turn your challenges into a competitive advantage by investing in spend analysis Today!


To know more about our spend analysis solutions for healthcare industry players

Contact US


Related Posts:

Recent Case Studies

Industries

Services

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars