Spend Analysis Engagement: Offering Comprehensive Spend Visibility for a Leading Organic Chemicals Manufacturer
Engagement Overview: A chemical industry client wanted to aggregate raw spend data from multiple sources across the organization including – ERP, procurement, accounts payable, and so on. To gain detailed visibility into their spend patterns, the organic chemicals manufacturer approached SpendEdge to devise a comprehensive approach to spend management by implementing spend analysis based solutions […]
A chemical industry client wanted to aggregate raw spend data from multiple sources across the organization including – ERP, procurement, accounts payable, and so on. To gain detailed visibility into their spend patterns, the organic chemicals manufacturer approached SpendEdge to devise a comprehensive approach to spend management by implementing spend analysis based solutions throughout their global supply chains.
A detailed quantitative analysis of various categories within the supply chain was carried out identify spend patterns and benchmark the best practices to be followed. Spend analysis also offered the foundation for making more informed business decisions. Also, the constant monitoring of variables that could possibly impact organizational spend resulted in the development of a robust spend management strategy. The variable included – consolidation within the sector, entry of new players, technological developments, and macroeconomic factors affecting the growth of the organic chemicals market.
About the Client:
A multinational company specializing in the manufacturing of organic chemicals. The client is a leading player in the chemical industry with several well-established subsidiaries operating in over 40 developed economies.
The organic chemicals manufacturer was facing difficulties in assessing spend patterns.
How did SpendEdge Help the Client?
- Step 1: Identification and collection of spend data from several resources
Our spend analysis experts followed a structured approach to gather and consolidate spend data from different business units into a central database. It included data from sources like accounts payable, e-procurement systems, and general ledgers.
- Step 2: Benchmarking of standardized processes
Implementation of spend management tools helped the client to benchmark best practices to be followed.
- Step 3: Devised a three-step approach to analyze and group spend data
The scrupulous approach helped in the constant monitoring of spend data to identify potential savings opportunities and ensure adherence to contract terms.
Key questions answered in this spend analysis study include:
Benefits of the Engagement:
Our spend analysis solution helped the organic chemicals manufacturer to break down the organization’s data silos and transform the gathered spend and contract data in an efficient and cost-effective manner. Our team worked as an extension of the organic chemicals firm to filter out irrelevant information and extract precise content to enhance visibility across various spend categories within the organic chemicals manufacturing space.
Why incorporate spend analysis solutions?
It is essential for organic chemicals manufacturing firms to break down their respective data silos to better identify collaborative procurement opportunities. However, since it is not possible to implement a common ERP or accounts payable system with same data structure throughout independent organizations, spend analysis offers an efficient and effective means to reach the desired result by aggregating data from several sources to provide the desired visibility.
Procurement teams that effectively use spend analysis will be able to better analyze their spend patterns, which will eventually result in higher returns and superior business outcomes. Moreover, with the recent focus on cost reduction, leading organizations across sectors are focusing on enhancing their spend management capabilities.
Spend analysis is one main aspect of spend management that can have a profound effect on the supply chain and the process of analyzing an organization’s spend pattern. A spend analysis engagement offers enhanced visibility into an enterprise’s procurement spend, which subsequently allows the organization to consolidate both its suppliers and its spending.
To know more about our spend analysis solution
- Spendedge Helps a Fortune 500 Medical Device Company Improve Savings Through its Spend Analysis and Benchmarking Services
- Spend Analysis Study Help Logistics Companies Reduce Sourcing and Procurement Costs Across the Supply Chain