Leveraging Spend Management to Save Costs and Boost Profits in the Fast Food Industry
Engagement Overview: The client wanted to leverage spend management to enhance spend capabilities across their supply network to drive topline revenue growth. To proactively address the challenges emerging due to inefficient spend management, the fast food industry client approached SpendEdge to devise an all-inclusive approach to spend management throughout their global supply network. A detailed […]READ MORE >>
The client wanted to leverage spend management to enhance spend capabilities across their supply network to drive topline revenue growth. To proactively address the challenges emerging due to inefficient spend management, the fast food industry client approached SpendEdge to devise an all-inclusive approach to spend management throughout their global supply network.
A detailed quantitative analysis of the various spend factors across their supply network was carried out to identify, assess, and prioritize each factor contributing to irrelevant spend. Using a robust spend management framework, the client was looking at devising appropriate strategies to reduce unwanted costs and inefficiency out of the supply chain. By doing so, the client wanted to gauge the impact on their bottom line and free up resources to address changing consumer predilections.
Furthermore, to address the issues of the fast food industry client a robust three-step spend management framework was developed, it included – collection, spend data analysis, and the development of a spend management framework. Following this, the fast food industry client redesigned their spend management system to leverage and include proactive spend management strategies.
About the Client:
A leading fast food chain in the US. The client is a prominent player in the fast food industry with multiple branches across various geographies.
The fast food industry player was facing difficulties in enhancing the spend management capabilities across their global supply network. To help the client overcome their challenges, the experts at SpendEdge developed a three-step methodology to tactically address the burgeoning nature of an inefficient spend management system.
How did SpendEdge Help the Client:
- Step 1: Extraction and clean-up of spend data from legacy systems
In the first step, spend data from across the client’s supply network was extracted, standardized, de-duplicated, and enriched to ensure effective spend data management. Our spend management experts followed a structured approach to develop a framework to effectively track the client’s organizational spend.
- Step 2: Collection and categorization of organizational spend data
It is essential to collect and categorize spend data from a multitude of sources within the organization’s supply network to identify irrelevant sources of spend. By doing so, organizations can effectively reduce and overcome the inflexibility caused by an incompetent spend management system.
- Step 3: Devised a flexible spend management framework aimed at reducing the organizational risks
The dynamic nature of the supply chain called for the refinement of the 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, spend data management strategies, and the use of advanced spend management.
Key questions answered in this spend management study include:
Benefits of the Engagement
Our spend management experts helped the fast food industry client devise an effective spend management framework to diversify their sourcing strategies to and minimize the risk of catastrophic supply chain failure due to an ineffective spend management system.
Leveraging spend management enabled the fast food industry client to enhance the visibility of their supply chain processes by establishing an interconnected relationship between different tiers of the supply network. The development of a holistic spend management approach also accounted for major changes in data management, organizational processes, and data governance, which helped address changes in market trends including the changes in regional and global demands.
Why is spend management necessary?
To deal with the inadequacies of traditional spend management systems, leading fast food industry firms are increasingly recognizing the need to incorporate spend management strategies across their global supply network. Click To TweetWith the easy availability of advanced technological solutions, it is now possible to bring in massive cultural transformations through the adoption and implementation of spend management as a fundamental part of business maneuvers.
While leading business establishments often turn to spend management solutions to reduce purchasing spend, they quickly realize that a precise spend management framework ultimately relies on the reliability and quality of the underlying spend data. This case study on spend management concludes that a successful spend management system must be based on a robust data management foundation.
To know more about our spend management solutions for the fast food industry
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