A leading food coloring powder supplier wanted to enhance spend visibility and efficiency. To analyze their spending patterns and identify long-term cost-saving opportunities, the food coloring powder supplier was looking at leveraging our spend analysis solutions. During the course of this engagement, a detailed quantitative analysis of various categories within the supply chain was carried out to help the client analyze spend patterns and develop an effective spend management framework.
About the Client
The client – a leading supplier of food coloring powder based out of the United States.
The food coloring powder supplier was facing predicaments in devising an appropriate spend management framework.
How did SpendEdge Help the Client?
Step 1: Collection of spend data
This first step involved the process of analyzing and collecting spend data from several sources across the organization’s supply network.
Step 2: Development of a spend management framework
The spend analysis experts at SpendEdge devised a robust spend management approach that helped the food coloring powder supplier to gain a holistic view of the spend pattern across their supply chain.
Key questions answered in this spend analysis engagement include
Benefits of the Engagement
With the help of SpendEdge’s spend analysis engagement, the food coloring powder supplier gained an overview of their spend patterns across their global supply network. The engagement also assisted the client in formulating an appropriate spend management framework that would help them distinguish, measure, and evaluate indirect and direct spends.
Why incorporate spend analysis solutions?
Over the past few years, spend analysis has emerged as an effective solution to enhance savings and drive profitability. Spend analysis typically involves the process of collecting and categorizing spend data that has been acquired from several disparate sources. Also, with companies competing for new market opportunities, spend analysis has become one of the essential factors to remain competitive.
The task of analyzing spend patterns to identify savings opportunities seems to be a daunting task for every organization. However, a detailed spend analysis engagement can help companies to identify significant savings opportunities. But to develop a robust spend management framework, different aspects of the procurement spend need to be inspected thoroughly. Moreover, implementing spend analysis as one of the main aspects of a business’s strategy helps enhance overall value by uncovering various market prospects.