The pace of businesses continues to accelerate every year, forcing enterprise sourcing teams to adapt variations and make alterations within global markets to remain competitive. Although responsibilities and workloads continue to increase, the sourcing team typically remains understaffed. As a result, early engagement, collaboration, process linkage, and automation have become treasured forces to help extend a sourcing team’s impact in the enterprise.
SpendEdge’s category management and sourcing specialists have identified the lack of skilled personnel, insufficient data for effective decision making, and lack of commitment of the senior management to be some of the significant challenges faced by businesses concerned with strategic sourcing.
The Procurement Pain Point and Insights Offered
A leading city gas distribution firm wanted to assess the market drivers and dynamics through an effective category management study. The retention of suppliers was the primary concern due to lower volumes and volatile procurement practices. As a result, they also wanted to gain insights on the supplier’s diversity, suppliers pricing, cost structure, and assess competitors’ procurement practices.
The category management experts at SpendEdge conducted a comprehensive research methodology, which included primary and secondary research and qualitative and quantitative data collection methodologies to cater to the specific business requirements of the client. During the course of this category management study, the client was given insights on superior strategies and tools that help address the business requirements. Additionally, the client was also provided with a list of suppliers who could grow into strategic partners. Furthermore, the client was also offered strategic recommendations on supplier relationship management, strategic sourcing, and procurement transformation to help create value within the procurement function.
Key questions answered in this category management study include
The category management study helped the client gain strategic insights on how to improve the overall strategic sourcing approach and tendering process. They were provided with related tools to reduce source-to-pay cycle times and enhance their supplier selection decisions. Additionally, these tools also helped them build effective strategic sourcing strategies and maintain effective relationships with their suppliers.