Spend Analysis Helps a Specialty Retail Client Gain Better Visibility into Corporate Spend
The global specialty retail industry is anticipated to witness a modest growth owing to macroeconomic factors such as higher GDP, disposable income, and consumer spending. The specialty retail industry is highly fragmented and typically consists of automotive, specialty stores, and fuel retailing. Additionally, the rapidly growing middle class, availability of trained workforce at a competitive cost, market-oriented stable economy, and well-developed financing and credit facilities are expected to boost the specialty retail industry. However, according to the spend analysis experts at SpendEdge, it has been noted that the competitive rivalry in this segment is high and a medium barrier to entry. Furthermore, the high degree of price competition, inflation, supply chain, and efficient inventory management is expected to pose a challenge for the industry.
Lately, the specialty retail industry segment’s supply chain activities have become more intimidating due to the constant pressures to decrease pricing and catering to the ever-increasing customer requirements. As a result, companies operating in the specialty retail industry space have started leveraging the use of robust spend analysis solutions to identify cost-effective measures that can help them meet the specific requirements of the customers seamlessly. Spend Analysis solutions also allows companies in the specialty retail industry space to measure and improve their business decisions across the industry.
With over 13 years of proficiency in offering a wide array of spend analysis solutions, SpendEdge helps companies operating in the specialty retail industry segment to reduce their inventory and maverick spends across the supply.
The Procurement Pain Point and Insights Offered
A leading specialty retail industry client with business units spread across several geographies was facing predicaments in supporting the particular sourcing needs for each line of business. Additionally, the client’s data warehouse system was the real source of time inefficiency for their indirect sourcing activities due to its inflexibility. As a result, the process for creating reports was complicated, manually driven, and time-consuming.
To help the specialty retail industry client reduce their inventory and maverick spend across the supply, SpendEdge tailored a two-step research method. The method included primary and secondary research coupled with quantitative and qualitative data collection procedures.
This spend analysis engagement helped the specialty retail industry client gain authority and ease of access to acquire valuable and credible spend data at any time with the help of smart analytics tools recommended by SpendEdge. The new analytics platform also helped the client transform their indirect sourcing team’s role from one of the support units to being a strategic consultant that provided actionable insights into the spend areas of the entire company.
Fundamental questions answered in this spend analysis study include
The spend analysis engagement helped the specialty retail industry client in gained better visibility into corporate spend. This translated into cross-functional leveraging of supplier spend, contracts, terms, trends, and pricing across business units. Moreover, the suppliers have gained a better understanding of specialty retail industry client’s business requirements and are more aligned with their future business strategies and directions.