The growth of the packaging industry across the globe is mainly due to environmental concerns, sustainability, and the demand to keep the product quality high. Over the years, packaging has become an essential part of a product’s lifecycle and has gone beyond its traditional usage, which was limited to protection. Moreover, the higher demand for a more sustainable, fresh and healthy, and hygienic product range in the developed markets is also contributing to the growth of this industry. However, the stringent regulations from governments across the globe over the packaging of chemical products and rising concerns regarding biodegradability of packaging materials are some of the factors restraining the growth of this market. As a result of such challenges, many packaging companies have started opting for procurement market intelligence studies to identify the constraints and risks to achieve savings and capture the synergies that are present in an integrated organization.
The Procurement Pain Point and Insights Offered
An international packaging manufacturer wanted to identify and evaluate potential procurement savings as they had taken over its main competitor and soon realized overlaps in significant areas of the Asia Pacific. The integration of the two companies also resulted in a major spend across many product categories. As a result, they wanted to cut down on the principal spends. Additionally, the client also wanted insights on the spending by suppliers, markets, products, period, direct and indirect costs, and forecast versus actual expenditure.
SpendEdge’s procurement market intelligence analysts conducted an all-inclusive industry analysis which included primary and secondary research coupled with qualitative and quantitative data collection methodology to cater to the specific category requirements of the client. This study helped the company discover a game-changing approach to the mega-supplier relationship. The suggested approach included new sourcing strategies, prioritized action plans, best practices in direct and indirect category management, and the establishment of a centralized procurement organization.
Key questions answered in this market intelligence study include
This procurement market intelligence study helped the client identify an enormous amount of procurement savings. The savings were categorized into three types including low-risk savings resulting from consolidating contracts and obtaining better prices, moderate-risk savings that require engagements with suppliers, and longer-term savings that need process and operational improvements and changes to the product portfolio.