The Business Challenge
The client, a leading supplier of sporting goods with outlets spread across different regions in North America, was facing predicaments in ensuring the supply of materials and services. Their traditional process of obtaining and managing raw materials was inefficient, especially when it came to reducing their splurge and streamlining inbound logistics from different countries. This was resulting in substantial losses for the company and was also reducing their efficiency when it comes to improving the bottom line. The client, therefore, decided to collaborate with SpendEdge and leverage our expertise in offering actionable supply management services.
Want to reduce the sourcing cost for your organization? Request a free proposal and avail all the benefits of supply management services.
By analyzing the current market scenario, risks influencing proft margins, and new market disruptions, the experts at SpendEdge focused on developing better supply management capabilities for the client. They conducted a comprehensive market research to obtain accurate real-time insights and determine appropriate supply markets for procuring products at the right prices.
The strategic approach adopted by our experts helped the client to take critical decisions related to suppliers. These decisions involved the identification and classification of capable suppliers, negotiation of the specific purchasing item, price, payments and volume, contracts, supplier development, and analysis of suppliers’ financial condition. Such an approach allowed the client to make better purchasing decisions while identifying key factors driving prices. Moreover, this highly focused approach helped the client to reduce two-third of its revenue, which was spent on buying goods and services, and enabled them to select appropriate suppliers.
Implementing SpendEdge’s supply management strategy helped the client to obtain detail information on supplier landscapes from specialized databases and prime cost benefits associated with them. This helped them to select the best cost sourcing locations and understanding prime cost advantages. Furthermore, the strategy helped the client to reduce excess spend, make efficient use of resources, and improve the business cost structure of the company.
What is the Importance of Purchasing and Supply Management?
Since organizations are spending more than 50% of their turnover on supplies, purchasing and supply management is becoming crucial for companies to stay competitive. They need to select and manage their suppliers efficiently to ensure the timely supply of materials and services to meet companies’ strategic plans and add value to their businesses. With a potent supply management strategy in place, companies can identify the needs of an organization and get the most profitable agreements in place. Additionally, a proper supply management system helps companies to avail the goods at the best prices while maintaining a cordial relationship with suppliers.