Over the last decade, the global automotive industry has undergone a tremendous transformation in its history. Although the European and North American regions are the largest markets, the APAC region is witnessing an increasing share of global automotive sales and is the only market, which is expected to witness steady growth in the coming years. However, the major reason behind the market’s sluggish growth in this region is the social and political instability witnessed across this region. As a result, many automotive firms have started opting for spend analysis studies to improve process efficiency and cut down the costs.
The Procurement Pain Point and Insights Offered
A leading automaker specializing in manufacturing automotive components wanted to not only reduce the current amount spent but also wanted to gain insights on the rising importance of global markets. Additionally, the client also wanted to identify the key suppliers in the market and analyze their spend patterns. Furthermore, the client also wanted to identify superior strategies to enter into a contract negotiation with their current suppliers.
The spend analysis specialists at SpendEdge carried out an in-depth two step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client. During the course this spend analysis engagement, the client was able to identify all the available suppliers, mainly in South Korea and China with a request for quotation (RFQ) package that outlined the volumes, projections, and partnerships. Additionally, the client gained insights on the spend pattern analysis of the other key suppliers and was able to develop a superior strategy to enter into a contract negotiation with the current suppliers.
Key questions answered in this spend analysis case study include
The spend analysis study helped the client identify the key suppliers in the market and their spend pattern. Additionally, the client obtained an understanding of the global supply capabilities and achieved their goal of supplier diversification to address the increasing importance of the Asian markets.
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