Procurement Intelligence Solution Transforms Finance Operations and Enhances Supply Management
About the Client
The client is an American multinational retail-clothing firm. With over 500+ stores, the company employs around 57,000 people globally.
The Business Challenge
With changing consumer behavior and technological innovations, retailers across the globe are uncovering new ways to sustain from the disruption. Moreover, retail brands are coping with a long-term uptrend in commodity and other raw materials input prices, and rapidly shifting global supply chain. These mounting global supply chain complexity with retail markets is forcing retail companies to be more agile and react faster than other players in the market. This is where procurement intelligence comes into play. In today’s competitive market scenario, procurement intelligence is the key to establishing long-term strategic sourcing and supply management plans.
Top Challenges Faced by the Retail Company
Problem Statement 1
The increasingly volatile commodity costs along with the rise infuel prices and labor rates greatly impacted the client’s profit margins. Hence the client needed to gain a clear focus on all the industry data to react quickly to the fluctuations in the market.
Problem Statement 2
The client realized that building and maintaining a close relationship with the suppliers is critical for their smooth business operations. Thus, the client approached SpendEdge to leverage procurement intelligence services to manage market fluctuations, acquisitions, divestitures, operational changes, and other factors that have a substantial impact on a supplier’s ability to deliver.
Problem Statement 3
With the help of procurement intelligence solutions, the client wanted to build a reliable, low cost, and an agile supply chain that enables them to reliably deliver products in a timely manner at a lower cost.
Problem Statement 4
The lack of retail company’s ability to react quickly to the market changes reduced reliability across their operations. Thus, with the help of procurement intelligence solutions the client wanted to effectively manage their supply chain operations.
With real-time price tracking and accurate forecasting of raw materials, commodities, and services, our procurement intelligence solutions enable businesses to achieve maximum cost savings. Contact us today to leverage our procurement intelligence solutions!
To address the business issues and meet the specific requirement of the client, the procurement intelligence specialists at SpendEdge developed a comprehensive approach that comprised of the following four phases.
The procurement intelligence experts at SpendEdge surveyed the top competitors of the company to find their priorities for the year ahead. We also examined the long-term strategic agenda to identify the cornerstone of the transformation. According to the survey report, most of the retail companies concentrated on upgrading their supply management for managing the procurement spend of their organization.
The surveys reported that contract management also plays a major role in building a better relationship with the supplier. Thus, for improving the strategic sourcing and supplier relationship, the experts created a robust procurement market intelligence report.
Based on all the data collected, the experts at SpendEdge built a reliable, low cost, and an agile supply chain that enabled them to reliably deliver products in a timely manner at a lower cost.
With the help of this procurement intelligence study, the client was able to identify the supplier’s cost and pricing structure and develop a compelling price model analysis to evaluate competitors’ strategies. Additionally, the procurement market intelligence report helped the client develop a list of suppliers in terms of their business profile, financial structure, and revenue. Additionally, procurement intelligence engagement helped the client to improve supplier management, enhance customer satisfaction, and gain a competitive advantage.
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Why SpendEdge’s Procurement Market Intelligence Solutions?
The supply chain of modern organizations is complex and increasingly dynamic. It is influenced by constant changes to suppliers and industries, raw materials and commodities, and within the markets themselves. An efficient procurement market intelligence strategy can help companies to effectively overcome sourcing challenges and successfully mitigate procurement risks. Procurement market intelligence can provide early warnings and unique insights into events that are likely to occur, and also provide information for assessing alternative suppliers and approaches.
With proven strategies to consolidate suppliers within specific supply markets, SpendEdge’s procurement intelligence solutions help organizations reduce purchasing and supplier management costs and increase the efficiency of their procurement process. Get in touch today to leverage our procurement intelligence solutions!