CASE STUDY

Spend Analysis Helps a Leading Premium Engine Oil Manufacturer to Make Better Sourcing and Supplier Decisions

May 2, 2018

Overview of the engine oil manufacturing space

The automotive engine oil market is segmented into four variants by technology. It can be segregated into premium engine oil which is used in two, three-wheelers, and hatchbacks. Fully synthetic engine oil, which is used in high-tech vehicles as it offers the highest level of lubrication and engine protection. Synthetic blend engine oil is used for SUVs and heavy-duty vehicles because of their added oxidation resistance and low-temperature properties. And lastly, higher mileage engine oil used for SUVs and heavy motor vehicles as it restores engine compression and reduces viscosity loss.

Tightening emission regulations by governments across the globe, increasing demand for low maintenance and friction and fuel-efficient engines from consumers, and demand for more advanced synthetic request free proposaloils are all the factors driving the premium engine oil market.

However, our analysis of the global automotive industry space shows that premium engine oil manufacturers are facing challenges in terms of:

  • Technology deployment: Adopting technology and implementing digital devices, sensors, and other databases that predict equipment breakdowns before they occur aids companies in improving their efficiency in the manufacturing process. Disruptions typically lead to mammoth spends. As a result, companies have to step forward and examine the role that digital technologies can play in improving their performance and avoid significant losses to the organization.
  • Differentiated capabilities: In recent years, smaller automotive engine oil manufacturing companies with a set of skills have been able to obtain mature assets and outperform the majors in specific segments. However, for firms operating in the premium engine oil sector, possessing differentiated capabilities proves to be a crucial factor in their success.

Many such factors are forcing companies in the automotive industry to leverage the use of spend analysis solutions. Spend analysis solutions enable organizations to reduce inventory, improve sourcing cycle time, and assists in long-term planning and economic forecasting. These solutions also provide a realistic view of future spend requirements based on the forecast data.

The Business Challenge and Journey

Client background: A premium engine oil manufacturer with manufacturing units spread across the globe was facing several issues in analyzing their spending patterns.

Client issue: The client wanted to commission a spend analysis engagement to enhance their spend efficiency and optimize customer base. Furthermore, they wanted to identify and mitigate risks to overcome the substantial financial losses.

The spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the global automotive industry space to help the client overcome their challenges.

Client journey: The premium engine oil manufacturing client gained relevant insights that helped them identify the potential bottlenecks in the supply chain. Additionally, the client also aggregated and visualized data to make better sourcing and supplier decisions. This helped them save on direct and direct spends and enhance business efficiency.

Key questions answered in this spend analysis engagement

The Results

The spend analysis solution enabled the client to develop a strategic sourcing model to reduce supply chain risks and establish their presence in the automotive industry.


To know more about our spend analysis solutions for the automotive industry

request free proposal


Related Posts:

[ess_grid alias=”Blog-studio” settings='{“max-entries”:”6″}’ special=’related’][/ess_grid]

Recent Case Studies

Four Pillars of Procurement Excellence

Four Pillars of Procurement Excellence

How can procurement excellence help businesses improve cost efficiency In recent years, companies have started focusing on procurement excellence to capitalize on their core competencies and keep pace with the rapid rate of globalization and stringent regulations....

read more

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

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

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

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