Spend Analysis Engagement: How a Sheet Metal Fabrication Company Enhanced Visibility Across Various Spend Categories
A leading sheet metal fabrication company wanted to gain a detailed visibility into their spend patterns. To aggregate raw spend data from numerous sources across the organization including – ERP, procurement, accounts payable, the sheet metal fabrication client approached SpendEdge to devise a comprehensive approach to spend analysis by implementing spend management based solutions throughout their global supply chains.
A detailed quantitative analysis of various categories within the supply chain was carried out to identify spend patterns and benchmark the best practices to be devised. Spend analysis also helped the client monitor the variables that could possibly impact the organizational spend. The variables included –entry of new players, consolidation within the sector, macroeconomic factors, and technological developments affecting the growth of the sheet metal fabrication market.
About the Client
A renowned company specializing in sheet metal fabrication with business units spread over 100 countries.
The sheet metal fabrication company was facing difficulties in assessing spend patterns.
How did SpendEdge Help the Client?
Step 1: Identification and collection of spend data from several resources
SpendEdge’s spend analysis experts followed an organized approach to collect and consolidate spend data from all the business units into a central database. It included data from sources like e-procurement systems and accounts payables.
Step 2: Benchmarking of standardized processes
Implementation of spend management tools helped the client benchmark best practices.
Key questions answered in this spend analysis engagement include
Benefits of the Engagement
With the help of SpendEdge’s spend analysis engagement, the sheet metal fabrication client segregated the organization’s data silos, which helped them transform spend and contract data in an efficient and cost-effective manner. The client also reduced the irrelevant information and extracted precise content to enhance visibility across various spend categories within the sheet metal fabrication space.
Why incorporate spend analysis solutions?
Today, it is quintessential for sheet metal fabrication companies to break down their individual data silos to better identify collaborative procurement opportunities. However, it is almost impossible to implement a common accounts payable system or ERP with same data structure throughout independent units. Spend analysis offers excellent means to reach the desired result by aggregating data from several sources to provide the desired visibility.
Today, procurement teams that use spend analysis are able to better analyze their spend patterns, which will eventually result in higher returns and superior business outcomes. Besides, with the recent increase in focus on cost reduction, sheet metal fabrication companies are focusing on enhancing their spend management capabilities.
Furthermore, a robust spend analysis engagement offers improved visibility into an enterprises’ procurement spend, which subsequently allows them to consolidate their supplier’s management and spending.