Over the years, the machine tools manufacturing industry has been proliferating due to the increase in the use of robotic-assisted technologies, surging automation, rising popularity of carbon fiber-reinforced polymers and use advanced grinding techniques in various end-user industries. Moreover, increase in investments in the expansion of manufacturing capabilities for durable goods is also driving the growth of the machine tools industry. However, according to the spend management experts at SpendEdge, the high costs involved in procuring machine tools parts is of the primary reasons for the industry’s sluggish growth. As a result, players in the machine tools manufacturing industry have started adopting spend management studies to cut down the maverick spends across the supply and gain a superior competitive advantage over their peers.
Moreover, the spend management solutions offered by SpendEdge, also help machine tools manufacturing clients gauge and improve their business decisions by formulating cost-effective strategies.
The Procurement Pain Point and Insights Offered
A global machine tools manufacturing player wanted to reduce material spends and inventory costs across the supply chain. As a result, the client wanted to gain insights on their spend pattern. Additionally, they wanted to integrate all their procurement and sourcing functions into a single process and increase their capability over the peers operating in the machine tools manufacturing industry.
The spend management experts at SpendEdge tailored a comprehensive two-step research method, which included primary and secondary research coupled with quantitative and qualitative data collection methodologies to address the client’s specific business issues and requirements.
During the course of this spend management engagement, the machine tools manufacturing client was able to integrate their procurement and sourcing functions into a single process which helped them operate in low-cost procure-to-pay process. This helped them gain a superior competitive edge over their peers.
Fundamental questions answered in this spend management study include
With the help of this spend management engagement, the machine tools manufacturing client was able to improve their spend visibility and cut down the maverick spends across the supply chain. Furthermore, the client also enhanced the policy compliance with their suppliers and condensed the overall risks across the supply chain.