The Business Challenge
The client, a leading financial services provider with business operations spread across the globe, wanted to streamline their procurement function to improve productivity, compliance, and inter-department supply-demand visibility as their existing procurement function was highly decentralized and required an innovative solution to make use of its full potential. Additionally, the client wanted to enumerate key supplier performance metrics and categorize high-performance suppliers to build better relationships.
To help the financial services industry client streamline their sourcing abilities and boost cross-functional visibility the supply chain analysis experts at SpendEdge tailored a comprehensive research methodology. This in-depth research approach included primary and secondary research coupled with qualitative and quantitative data collection procedures.
Through the course of the supply chain analysis engagement, the financial services client gained superior visibility of the supply chain and determined their supply chain capabilities. The client also gained enhanced visibility and control, particularly in supplier relationships; identified the value-add services they could offer to the right sub-contractors to strengthen their delivery capabilities.
With the help of thus supply chain analysis engagement, the financial services client was able to ensure quality and compliance across the entire supply chain. This helped them achieve better ROI and boost sales.
Financial Services Industry Overview
Often, the financial services industry is considered to be the backbone of a nation’s economy and indicates the socio-economic well-being of any economy. Currently, the financial services industry is witnessing a transformation toward a more consumer-centric environment to increase liquidity, reduce leverage, and improve additional capital. As a result, financial services industry players are facing an uphill task of providing services that are risk and complaint free to the end-users. Additionally, firms within this space are increasing their focus on devising robust market strategies to attract consumers across economies. In the hassle to attract consumers and enhance risk management capabilities, several factors are hampering the growth of the financial sector. These factors include:
- Stringent government regulations: Leading firms within the financial services sector are looking for robust ways of managing reputational risks and meeting the capital and leverage ratio requirements due to the fluctuating regulations across the globe. Additionally, companies are facing relentless pressures to enhance their service offerings across niche market segments while being cost-effective.
- Weak global economy: Leading companies within the financial services sector are facing relentless pressures to sustain themselves in the marketplace owing to the uncertainty in the global economy. Also, with the fluctuations in the global economy, consumer spending habits are plummeting, and they are looking to invest wisely and reduce their spending patterns.
These factors are compelling financial services majors to leverage the use of supply chain analysis. Supply chain analysis provides superior visibility into the operational experience, contract status, and supplier capabilities. These solutions also facilitate better controls of procurement spends and compliance monitoring across business units.
Want more insights on how the financial services industry can benefit from supply chain analysis? Request a free proposal.