Category Market Intelligence for the Manufacturing Sector – A SpendEdge Case Study
Engagement Overview: A leading player in the manufacturing sector wanted to build a category management strategy for boosting their procurement functions. The client also wanted to enhance their category expertise and intelligence across all critical areas of the supply network. To do so, the manufacturing sector client approached SpendEdge to leverage a category market intelligence […]
A leading player in the manufacturing sector wanted to build a category management strategy for boosting their procurement functions. The client also wanted to enhance their category expertise and intelligence across all critical areas of the supply network. To do so, the manufacturing sector client approached SpendEdge to leverage a category market intelligence solution. A detailed quantitative analysis of various supply chain categories was carried out to build world-class procurement solutions.
About the Client:
The client is a leading player in the manufacturing sector, specializing in the manufacturing of automotive components.
The manufacturing sector client was facing several challenges in making optimal procurement decisions, which varied from broad macro data on price trends to highly granular supplier specific information.
How did SpendEdge Help the Client?
- Step 1: Build a robust intelligence unit for managing frequently sourced categories
The first step revolved around the development of an internal intelligence unit for managing the frequently sourced categories. The development of this capability required investments in category intelligence tools that focus exclusively on a specific supply market. Leading players in the manufacturing sector have already made such investments, but in today’s scenario, there’s a larger scope for enhancing this capability by building an information infrastructure for capturing and sharing data across the organization’s supply network.
- Step 2: Customized procurement and category market intelligence strategies
Supply market intelligence is essential to manage the dynamics of the global supply network. Customization of procurement and category management strategies can help reduce the time allocated for information gathering and enable manufacturing companies to focus on strategic sourcing.
- Step 3: Built a robust category market intelligence framework
To devise an effective intelligence framework, it is essential to differentiate frequently sourced categories from the infrequently sourced categories. The developed framework enhanced value through a basic process that captured category data based on sourcing activities. It also enabled the client to populate simple supplier information and rate databases with information about both supplier capabilities and past performance, as well as a price and rate information.
Key questions answered in this category market intelligence engagement include:
Benefits of the Engagement:
The category market intelligence experts at SpendEdge helped the manufacturing sector client to enhance their procurement efficiency by devising an effective category management strategy. Category market intelligence also enabled the client to gain detailed insights into the different categories within the supply network.
Why incorporate category market intelligence in the manufacturing sector?
Excelling in category management is an important goal of procurement organizations globally. New imperatives have emerged out of complex market landscapes besides cost savings; thereby, compelling manufacturing companies to view the role of procurement through the prism of innovation, risk, flexibility, cost, and speed.
SpendEdge’s category market intelligence solutions are aimed at offering personalized category management solutions to procurement teams to help them cut down the time allocated for information collection and analysis. Implementing our category market intelligence solutions helps procurement professionals to focus on category management and drive organizational value. This helps them to emphasize on adding value to procurement rather than cutting procurement costs.
The role of intelligence in procurement as a strategic enabler of business success is now bigger than ever. Effective category management helps manufacturing sector firms to develop a leading category market intelligence capability, which proves to be challenging even for the most resourceful organizations. Therefore, it is essential for businesses to develop a strong foundation in category management as it helps deliver breakthrough value and elevates the role of procurement by helping them gain access to the organizational spend data.