Category: Blogs

mining equipment market

Top Challenges Impacting Growth of the Mining Equipment Market

Mining Equipment Market Outlook 

Owing to the initiation of new mining projects and the rise in mining exploration activities in countries such as Canada and the United States, the global mining equipment market is expected to witness a growth of over $40 billion. The transition from under growing to the more economical, open-pit mining can further propel the growth of the mining equipment market. However, mineral extraction and processing have become increasingly difficult. The impact on the fragile environment has become a growing concern among people and governments. Many countries are looking for alternative options to non-renewable resources in order to save them from getting extinct and increasing the cost of raw materials. Also like many other sectors with challenges to future growth, change in the mining sector is being driven by technology, innovations, social demands. The article identifies key factors that can influence the growth of companies in the mining equipment market.

Companies in the mining equipment market are losing ground due to stringent rules. Request a free proposal to gain customized market intelligence solutions. 

 

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Allocation of capital 

Increasing exploration and production costs have impacted profit margins and made investors reticent to collaborate with new companies. This has increasingly made it difficult for companies to raise the necessary capital to invest in large-scale equipment and expensive mining practices. Though flexible finance has become an easy option for companies and empowered companies to push the barriers of exploration, still lack of access to capital has led to the scrapping of numerous high-profile projects.  

Wondering how companies operating in the mining equipment market can identify potential suppliers and investors to meet capital requirements?

Reach to our experts for more insights on our solutions.  

Advanced technologies 

The development of autonomous drill equipment, GPS systems, and satellite communications has largely impacted the mining equipment market over the last ten years. Today, the equipment has rig control systems and data analysis capabilities that can provide online information about actual drilling pattern geometries, and volumes. There are technologies available to make continuous, on-line ore mineral analysis. Companies in the mining equipment market need to keep pace with such technologies and make future advancements to maintain a competitive advantage.

Incapability to keep pace with emerging and evolving digital technologies can make it difficult for companies to sustain in the mining equipment market. Stay a step ahead by requesting free platform access from our procurement experts to gain detailed market insights.   

Evolving stakeholder relationships 

Companies operating in the mining industry must adopt new approaches to meet increasing demands for local employment opportunities, improved infrastructure, and greater environmental protection. Improvements in government regulations may help ease the process of investment and reduce high royalty rates and uncertain tax rules, thereby increasing the growth of the mining equipment market. But mining companies need to re-establish their credibility in the investor community and build better stakeholder relationships.  

To gain detailed insights into the challenges faced by companies in the mining equipment market, request more information from our analysts.

Vendor Management

Key Risks Companies Need to Consider While Developing a Vendor Management Policy

With organizations outsourcing services to third party entities, the issue of vendor management has become a noted topic in today’s business world. Companies need to monitor entities for baseline compliance measures with regards to minimally accepted standards for security. Specifically, all outsourced processes, procedures, and practices relevant to a company’s business must be monitored regularly, which also includes devising a potent vendor management policy.

A vendor management policy ensures that companies can readily identify any issues, concerns or constraints pertaining to these risks. Failure to mitigate and prevent these risks can result in significant financial losses, legal issues, and reputational damage to the brand. As such, the following risks are to be thoroughly understood and associated with regards to business and contractual relationship entered with third parties. 

At SpendEdge, we understand the impact of risks posed by third parties. Therefore, we are defining different types of risks that you need to understand to formulate an effective vendor management policy while entering into a third party or contractual relationship.

Want to know more about the risks that you need to mitigate to gain increased value from vendors? Request a free proposal and we will get back to you with key insights. 

Why you Need a Vendor Management Policy?

Compliance risks

The risks arising from violations of applicable laws, rules, regulatory mandates apart from internal operational business and information security policies and procedures are termed as compliance risks. Such risks require constant monitoring and oversight of third parties, and a vendor management policy for ensuring the safety and securities of services provided to the company by such entities.

Strategic risks

These are the risks occurring due to the inability of third parties to implement business initiatives that align with the business ideas of the company such as offering sub-standard services that provide a lower return on investment. Ultimately, when the long term vision of the company and the third-party do not align, strategic risks begin to surface, and companies need a vendor management policy to tackle them.

Wondering how an effective vendor management policy can help you implement business initiatives and improve ROI?

Contact us, to know more.  

Transactional risks

Transactional risks occur when the third party fails to deliver the set objectives, such as product delivery, operational efficiency, or unauthorized transactions. An important way of mitigating such risks is having a comprehensive, well-documented vendor management policy that can guide third parties on a regular basis. 

Operational risk 

Operational risks arise from a failed system of operational internal controls, that relate to personal and the relevant policies and practices. This becomes an issue when organizations integrate their operational activities with outsourcing providers, thus affecting productivity, workflow efficiency, and many other issues.

Inability to implement effective vendor management best practices can impact the company’s productivity and workflow efficiency. Stay a step ahead by requesting a free demo of our procurement platform and gain exclusive market insights to improve your vendor management process. 

Country risks

Country risk refers to the risks happening due to the political, economic and social landscape – within a foreign country that can impact the services provided by third parties. Managing such risks can be extremely challenging without a vendor management policy, especially when considered with respect to the diverse political landscape across the globe. These risks may also include legal issues as laws and regulations differ greatly from region to region. 

To know how you can identify and manage these risks, request more information from our experts or leverage our vendor management services. 

food and beverage industry

Top Trends Disrupting the US Food and Beverage Industry in 2020

US Food and Beverage Industry Overview

With the rising population and changing consumers’ lifestyles, companies in the US food and beverage industry must constantly thrive to become more energy-efficient, globally sustainable, cost-efficient, and health-conscious. There are numerous opportunities for companies to grow but staying on top of emerging technologies like artificial intelligence and blockchain is the key necessity at this point. They need to address changing consumer preferences and rising costs while innovating to gain a competitive edge in the marketplace. With so much happening inside the industry, firms must also analyze the latest trends influencing the US food and beverage industry.  

Want to know the cost-effective strategies adopted by companies to increase their competitiveness in the US food and beverage industry? Request a free proposal and we will get back to you with industry-specific insights.

Future Trends in the US Food and Beverage Industry

US Food and Beverage Industry Trend #1 Natural Alternatives and Clean Labels 

Transparency is the biggest trend driving change in the food and beverage industry. Consumers are keen to know ingredients going on into products. This is the reason why companies are launching products with shorter ingredients lists. Consumers are looking for brands that can reflect their personal values. Clean labels with high ethical values are more important for “aware” customers looking for real ingredients from nature. They are seeing their purchasing decisions as a form of activism and supporting brands that align with their beliefs and hope for the future. Companies, therefore, need to make systemic changes for the betterment of the people and the planet to gain a competitive edge.  

US Food and Beverage Industry Trend #2: Healthier Options

Health has become a key priority for consumers. Over the last few years, this has resulted in cleaner labels and the growth of new entrants across different categories. Consumers are becoming more educated and retailers are taking positions with innovative products to drive higher profit margins. Companies that have been in the market for over 50 years are recreating their products with no sugar alternatives, saturated fats, and artificial coloring. In the near future, gauging health and wellness will help retailers drive change.

Wondering how changing customer choices can impact the supply chain of companies in the US food and industry? Reach out to our experts for detailed insights into the US food and industry.

Wondering how changing customer choices can impact the supply chain of companies in this industry

Reach out to our experts for detailed insights into the US food and industry.

US Food and Beverage Industry Trend #3 Food Safety 

As consumers increasingly demand to know the food they eat, food safety issues are costing companies in the food and beverage industry billions every year. It has become important for the industry to pinpoint issues and solve them by utilizing the latest technologies such as blockchain. According to our analysis, as companies will become aware of the blockchain’s benefits across the entire food chain, the manufacturers and distributors using this technology will increase. 

Inability to enhance the efficiency of the supply chain can make it difficult for companies to ensure food safety and market growth. Give SpendEdge a try by requesting a free demo of our procurement platform and gain exclusive insights into the food and beverage industry market size.   

Inability to enhance the efficiency of the supply chain can make it difficult for companies to ensure food safety and market growth

Gain access to SpendEdge’s procurement platform to get exclusive insights into the food and beverage industry market size.   

US Food and Beverage Industry Trend #4 Mergers and Acquisitions

Both private equity (PE) firms and large brands will consider on-trend companies in the food and beverage to be a lucrative option. They will look to rising brands to help add new product lines and reach new consumers. Firms will undertake acquisitions beyond their traditional business and invest in segments that have better prospects. However, companies need to keep an eye on tariffs affecting their business similar to private equity firms while evaluating prospects.

Willing to invest in the US food and beverage industry? Request more information from our experts to perform food and beverage industry analysis and obtain accurate insights. 

Procurement Best Practices

Suggested European Procurement Best Practices for Businesses by SpendEdge

The majority of government and private entities now consider procurement as a fundamental enabler of business strategy. It has become a preferred method for achieving sustainable cost reduction and a source of opportunity for process simplification. Based on our experience in working with clients to improve their procurement outcomes, we have outlined key strategies that are imperative for your procurement function right now. These strategies when implemented properly, will significantly lower costs, improve process efficiency, deliver competitive advantage by eliminating wastage in the cycle of source and supply when purchasing goods and services.

Want to know how you can lower the cost of processes by implementing European procurement best practices? Request a free proposal and we will get back to you in 48 hours with our customized solutions. 

European procurement best practices #1: Centralize the procurement function

The decision to centralize the procurement function may not be an easy transition, but it can be vital for your organization to ensure the implementation of effective purchasing practices. Companies opting for centralized procurement operation gain better control of purchasing functions and promote a more effective buying process. They spend less time on ad hoc purchasing and enjoy more discounts from vendors due to greater volume purchasing. A centralized location for all purchasing records also improves visibility into purchasing decisions, facilitates better inventory management, and prevents disruptions, which reflects on the company’s performance.

European procurement best practices #2: Share compliance data 

This is one of the European procurement best practices that companies can implement. Sharing the compliance data with relevant business leaders not only allows companies to improve transparency but it can improve performance as well. Systematic and public reporting of compliance data takes advantage of image-building and competition amongst managers and departments. It drives proactive decision-making and opens up new avenues for collaboration.

Inability to gain specific insights can negatively impact the decision-making process for businesses. Contact us, to know more about European and indirect procurement best practices.  

Inability to gain specific insights can negatively impact the decision-making process for businesses

Contact us to know more about European and indirect procurement best practices.  

European procurement best practices #3: Realize hard savings 

Procurement cost savings is the main KPI for most procurement departments. Organizations use numerous ways to track these savings. However, focusing solely on procurement cost savings is not a good strategy in the long-term. The changing market dynamics have compelled CPOs to now realize savings based on transaction values and actual consumption. They are looking at achieving hard savings based on reduction in the unit cost of operations and production.

Are you finding it difficult to realize hard savings based on transaction values and actual consumption? Request free access to our platform and know European procurement best practices benchmarks to improve process efficiencies.

European procurement best practices #4: Invest in technology 

Most of the CPOs have had mixed views regarding procurement technology infrastructures. But they have realized that old-age solutions are not the best of the breed. They need to automate supply processes and bring significant bottom-line benefits by allowing greater productivity to increase efficiencies in business transactions. Use of technology is one of the European procurement best practices used by benchmarking firms to measure the efficiency of procurement organizations.

To gain detailed insights regarding European procurement best practices, request for more information from our analysts.

Food and Beverage Industry

Recipe for Success in the Food and Beverage Industry – Top Trends and the Best Food and Beverage Companies Selection Criteria

The cauldron in the current food and beverage industry is cooking up a storm of trends that are poised to change the face and functioning of this industry. Stakeholders including the food and beverage companies who are failing to adapt to these trends are cutting the humble pie in this industry. On a positive note, scores of stakeholders are adopting these trends to create their recipe to taste success in the food and beverage industry. This blog focuses on such key trends and offers insights to buyers into the best selection criteria to engage with the leading food and beverage companies that can add value to their business.

Before you read further, know who are the leading food and beverage companies that buyers are partnering with to gain a competitive edge in the ever-dynamic food and beverage industry. Get complimentary access to our procurement platform to get instant and real-time information on these food and beverage companies.

Key Food and Beverage Industry Trends

 

These trends are currently changing the scopes and the way to do business in the food and beverage industry. In response to this, most of the food and beverage companies are restructuring their business models as well as their inventories which are heralding complexities in the supplier selection and management for buyers in this industry.

Food and Beverage Industry Catering to Retail Experience

 

No matter how much it sounds like the apple and orange analogy, it is currently one of the trends that are bringing in business scopes as well as difficulties in the food and beverage industry. The food and beverage section is now becoming a quintessential part of hypermarkets and shopping malls that are mushrooming across regions. For consumers, retail therapy essentially concludes with a satisfying gastronomic experience. It will not be an exaggeration to state that the footfall in such retail stores is majorly influenced by the quality and quantity of food and beverage stalls. This is widening the business channels for scores of food and beverage companies. However, the proliferation of e-commerce retail platform is casting a pale gloom on the business prospects of the food and beverage companies.

While there are no short-cuts to success, time is money in business and it is ticking. Access to SpendEdge’s procurement platform is free and instant. Now, get daily insights into the best strategies and negotiation strategies with the best suppliers in the food and beverage industry with the help of our platform.

Get daily insights into the best strategies and negotiation strategies with the best suppliers in the food and beverage industry.

Organizing Food and Beverage Industry in the Organic Way

 

Concerns over health and expectations of better eating habits are compelling food and beverage companies to re-organize their inventory to accommodate ingredients that are organic and suit consumer’s penchant towards natural and healthy consumables. While being healthy, such organic ingredients are expensive and generally have shorter shelf-lives. This is increasing their inventory-related expenditure which they are ultimately compensating by hiking the price of the end-products in the food and beverage industry.

Stringent Regulations are Increasing Product Recalls in the Food and Beverage Industry

 

While using food-grade colors and additives are catering to the distinguishing factor of consumables, these are also some of the serial offenders charged with stomach-related ailments. Such artificial additives are some of the common ingredients used in convenience foods and beverages which are currently a rage among the urban population. This is stirring the concerns of the health watchdogs who are tightening their leash around the food and beverage companies. They are increasing the stringency of regulations that govern the usage of such usages. Such stringencies are not only increasing complexities for food and beverage companies in the form of spiraling compliance costs but are also rendering the supplier selection difficult in the food and beverage industry.

Are the Multiple Advertisement Channels in the Food and Beverage Industry Making Consumers Wonder What to Buy and What not to?

 

There is no doubting the fact that consumer’s taste has always been extremely dynamic when put to the test of time. To embrace and capitalize the same, most of the food and beverage companies are resorting to aggressive marketing campaigns both on the e-commerce platform and at the brick-and-mortar stores. While some of those campaigns promise healthy bites, the other promises satisfaction for their tastebuds. In a way, this is hampering product differentiation which is affecting consumer’s purchases in the food and beverage industry. Most of the time, such advertisements fail to project transparency on the consumables which is one of the critical customer concerns when it comes to what they eat.

Get instant insights into a range of categories that form the food and beverage industry. Click here to know about the negotiation strategies with food and beverage companies and procurement best practices in this industry.

Insights into Supplier Selection Criteria in the Food and Beverage Industry

 

It is evident that the key to capitalizing on the business-promoting trends in the food and beverage industry is to partner with the best-suited food and beverage companies and to achieve favorable supply relationship management with them. However, it must be kept in mind, that achieving a favorable supplier relationship management is not a matter of a moment. It must be planned in view of the pressing forces that threaten to create obstacles for buyers in the food and beverage industry.

Technical Acumen of Food and Beverage Companies

 

The food and beverage industry is governed by disruptive trends to which buyers have to stay abreast and upgrade. This makes it essential for them to engage with food and beverage companies that have the necessary resources to not only adapt to these trends but also enable buyers to surge ahead in the competition. Some of the aspects that buyers must consider while selecting suppliers in the food and beverage industry are:

  • Expertise in meeting specific criteria in the food and beverage industry for fortification and addressing key issues of flavor, bioavailability, texture, cost, marketability, and shelf-life.
  • Ability to develop specific ingredients to differentiate the buyer’s products on store shelves according to consumer preferences.
  • Ability to reduce new product development timelines without compromising quality.
  • Expertise in aspects such as purchasing, testing, inventory management, and labor management in the food and beverage industry.

 

While strategic supplier partnership is crucial to optimize procurement spend, lack of real-time insights into the current supply market scenario results in sub-optimal partnerships. Request a free demo of our procurement platform to gain immediate access to supplier selection strategies for the food and beverage industry.

Gain immediate access to supplier selection strategies for the food and beverage industry.

Evaluating the Internal Food Safety Quality Traceability System

 

This is one of the most critical selection criteria that buyers must consider to stay in the good books of the regulatory watchdogs in the food and beverage industry. Food and beverage companies implement product traceability systems to track any substance that is being used for production, processing, and distribution. It provides the companies supplier with better control over product integrity. It also helps buyers protect their brand reputation in the food and beverage industry, as it helps in rapid issue identification and resolution.

Collaborate with Food and Beverage Companies who Follow a Value-Creation-Based Approach

 

In the food and beverage industry, companies must ensure that they have a continuous improvement mechanism in place aimed at enhancing the value for buyers. This starts with maintaining a secure, reliable, and high-quality sourcing and procurement process of raw materials. Food and beverage companies are expected to target the maximum possible efficiencies in operations and meet new and emerging requirements of consumers in the food and beverage industry.

Packaging and Logistics Capabilities of Food and Beverage Companies

Inadequate packaging and inefficient logistics have not only resulted in product recalls but have also tarnished the brand reputation of buyers in the food and beverage industry. Suppliers are expected to deliver under a fixed schedule with proper assistance and supervision during transit. This ensures that the functional attributes of the product remain intact. In the food and beverage industry, buyers must ensure that they partner with suppliers who adopt innovative packaging materials that facilitate the improvement of the shelf-life of products due to their anti-microbial and anti-moisture properties.

Request more information from SpendEdge’s experts to get real-time insights into the sourcing strategies and procurement best practices that will help buyers devise sustainable and futuristic procurement strategies befitting the food and beverage industry dynamics.

risk management

Risk Management Strategies to Address Price Volatility in the US Oil and Gas Industry

Risk Management Strategies in the US Oil and Gas Industry (1)

The oil and gas industry is arguably the industry with the highest risk factor given its complex nature. Companies have to deal with the fluctuating oil prices and its recent plunge due to the US government’s trade war has been a major blow for companies. However, risks in the oil and gas sector are not just confined to price volatility but cover political risks and security risks as well. Starting from the geological survey down to the lifting and production level, this capital intensive industry is faced with uncertainties at different levels. Given the aforementioned reasons, coupled with several other complexities, companies in the US oil and gas industry must implement risk management strategies to ensure financial sustainability and protect investors within the sector. The article identifies key strategies that can be adopted to mitigate the risk of price volatility and improve the risk management process.

Despite numerous risks in the oil and gas industry, investors can still make substantial profits by developing effective risk management strategies. Request a free proposal to gain key insights.  

Key Risk Management Strategies for Mitigating the Risk of Price Volatility

Risk management strategies #1: Create forward contracts

A forward contract is a customized contract that specifies prices for both parties to buy or sell an asset on a future date. It can be effectively used for hedging or speculation. In relation to the US oil and gas industry, a forward contract is a basically a private agreement signed between a buyer and a seller, obligating the buyer and the seller to purchase and sell oil at a set price which is equal to the forward price set at the start of the contract. In this, each party bears the risk of default on future commitments. 

Wondering how risk management practices such as creating forward contracts can mitigate the risk of price volatility?

Reach to our experts for more insights on our solutions.  

Risk management strategies #2: Develop future contracts

A forward contract that incorporates the rules of exchange is termed as a future contract. It is traded in exchanges, where a clearing house represents the buyer and seller. The key purpose of the primary house is to mitigate the risk of default and ensure the quality and quantity of the products delivered. The New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) Futures are a few of the major future exchanges. Future contracts are given much priority in the US oil and gas industry as clearing house takes the risk away from the parties, thereby improving the risk management process.

Incapability to develop future contracts can increase the exposure to volatile oil and gas prices. Stay a step ahead by requesting free platform access from our procurement experts. 

Risk management strategies #3: Introduce the concept of swap

The concept of swap can be easily applied in the oil and gas industry as a hedging instrument for risk mitigation. It is the exchange of financial assets between concerned parties at a predetermined rate, as per the terms laid out in the contract. It is usually arranged through financial institutions or through banks. Similar to forward and future contracts, oil swaps are one of the key risk management strategies companies adopt to mitigate the risk of price volatility. It transfers the risk of price volatility from oil producer to the lender. Swaps guarantee a firm price for a calculated volume of crude oil for oil producers. In case of a plunge in crude oil price below the fixed price, the financial intermediary is obligated to pay the fixed price that was agreed upon in the contract.

To gain detailed insights into the risk management strategies and the ways to develop a risk management framework, request for more information from our analysts.

US automotive industry

Is the US Automotive Industry Losing its Momentum? How are the American Car Manufacturers Coping with this Perceived Industry Downturn? SpendEdge’s Tridib Bora Offers Insightful Answers to these Imposing Queries

It will not be an exaggeration to say that the US automotive industry is geared for a bumpy ride over the next five years. Click To Tweet Most of the leading American car manufacturers are reeling under the impact of factors that are forcing their automobile ventures to shift gears to the newer and more dynamic platforms of technologies. These factors are not only eschewing the profit margins of the American car manufacturers but also creating immense procurement dynamism for buyers in the US automobile industry. During a Q and A session, SpendEdge’s Tridib Bora highlighted some of the critical factors that are changing the course of the US automotive industry and advised the key strategies that can aid both the buyers and the automobile manufacturers in addressing the imposing challenges in this US automotive industry.

Wait. Before you read further are you interested to know who are the leading American car manufacturers that buyers are partnering with to achieve cost-efficient procurement even amidst these industry challenges? Get complimentary access to our procurement platform to get instant and real-time information on these manufacturers in the US automotive industry.

According to you, what are the most critical factors that are creating challenges in the US automotive industry?

Tridib: Looking at the trends for the past three years, the gradual acceptance of electric vehicles is serving as a critical disruptive factor for not just the American car manufacturers but for all the global car manufacturers. With the improving accessibility of electric vehicles to the millennials, the clash between the traditional American car manufacturers and the electric carmakers is becoming more prominent. American car manufacturers are facing the compulsion to pump in more investments into their R&D activities to stay at par with the technological strides, such as the electric vehicles, in the US automotive industry. However, this is increasing their OPEX to a significant extent which they are compensating by increasing the market price of the manufactured vehicles. This is demotivating buyers from purchasing vehicles which is reflective in the plummeting sales in the US automotive industry. In my opinion, the current regulatory reforms that mandate the adoption of sustainable measures will favor the proliferation of electric vehicles which will add to the woes of the American car manufacturers.

Dynamisms in the US automotive industry are affecting supplier relationship management which is resulting in non-adherence to SLA terms by the suppliers. Request a free demo of our web-based procurement platform to get instant access to the supplier selection strategies recommended by the US automotive industry experts.

Get instant access to the supplier selection strategies recommended by the US automotive industry experts

I feel that the plummeting car sales in the US automotive industry can be blamed on the rapid popularity of car-sharing applications such as Uber, Zipcar. Car ownership is being perceived as a matter of luxury among the millennials who are resorting to these applications to not only exempt themselves from the pocket pinch that they feel while paying for parking fees and insurances.

Are you hinting at the American car manufacturers as the most adversely affected section because of these challenges in the US automotive industry?

Tridib: Not entirely. I believe that while buyers and suppliers have equal stakes to claim in a market, it is obvious that any potential challenge in a market will impact both in an equal and unbiased manner. Coming to the fate of buyers in the US automotive industry, the procurement terrain is quite rough and dotted with uncertainties in terms of the pricing structure and viability of suppliers. Buyers will have a hard time bringing stability in their price strategies owing to the dynamic cost structures of the American car manufacturers. They will face immense challenges to achieve a favorable supplier relationship management in the US automotive industry which is characterized by an uneven demand and supply ratio.

In the recent times, the US automotive industry witnessed a series of mergers and alliances among some of the major players in this industry to consolidate the concepts of electric vehicles and traditional combustion engines on the same platform. This will not only render supplier selection difficult but will also hinder buyers from wielding their negotiation levers with the American car manufacturers.

Request more information from SpendEdge’s experts to get real-time insights into the sourcing strategies and procurement best practices will help buyers devise sustainable and futuristic procurement strategies befitting the US automotive industry dynamics.

What are the procurement strategies you think must be adopted by buyers to address these uncertainties in the US automotive industry?

Tridib: From the perspective of the US automotive industry, supply management, sourcing, and quality are the three pillars that can strengthen the buyer’s procurement strategy in this industry. Devising price strategies forms an essential part of sourcing which is a two-way facilitation between buyers and suppliers. In view of this, buyers in the US automotive industry must partner with suppliers who implement BOT models. The concept of the BOT model involves payment to suppliers on the basis of manufacturing costs. This is functional in minimizing the buyer’s ad hoc spend and procurement cost. Additionally, the implementation of the BOT model will help share the operational risks between the buyers and the suppliers.

Fluctuating raw material prices will play as critical cost components in the OPEX of the American car manufacturers which will have an inflationary impact on the procurement expenditure of buyers. To offset the same, buyers should partner with suppliers who can forecast the demand and prices of raw materials by using effective predictive analytical tools. This will help buyers minimize their procurement-related costs in the US automotive industry.

Coming to the criteria to select suppliers, it is imperative for buyers to factor in the level of regulatory adherence maintained by suppliers in the US automotive industry. For buyers, failure to adhere can ramify into the termination of business licenses and tarnish the brand image. Buyers must engage with suppliers who manufacture products with technologies that meet the current world emission standards without affecting the performance of the engine.

Criteria to select suppliers in this dynamic US automotive industry is subject to change based on the day-to-day industry outlook. Get a free demo of our procurement platform to gain immediate access to real-time insights into the changing suppliers’ selection criteria.

Gain immediate access to real-time insights into the changing suppliers’ selection criteria

Supplier relationship management does not end after the delivery of products. After-sales services play important roles in fostering a beneficial buyer-supplier relationship in the US automotive industry. In this context, I suggest that buyers evaluate the suppliers based on their responsiveness to requests raised which will ensure proper service delivery post-execution of purchase of goods.

Supply chain risks are one of the common procurement obstacles in the US automotive industry. This makes it essential for buyers to deepen their focus on rationalizing the supply chains to reduce the risks that arise due to many echelons in the supply chain. It also assists in consolidating several category-centric spend areas, which reduces accounts management efforts for buyers in the US automotive industry.

Does SpendEdge have any first-hand experience in helping enterprises in the automotive sector including the US automobile industry overcome such procurement challenges?

Tridib: Yes. Currently, SpendEdge is one of the most preferred procurement intelligence firms who has its unique way of analyzing the potential challenges and resolving them with the future market scenario in mind. To quote a few, SpendEdge conducted a supply-side risk assessment for a leading original equipment manufacturer (OEM) in the automotive industry. Execution of this study resulted in the mitigation of risks associated with quality failure, product failure, and latent defects impacting auto sales growth. It also reduced the possibilities of outturn costs being higher than the anticipated costs.

Case Study Snapshot

SpendEdge helped one of the leading American car manufacturers to reduce their sourcing costs by 19% by conducting a comprehensive performance assessment of suppliers.

Case Study Snapshot

UK Travel Market

Where is the UK Travel Market Heading Following the Thomas Cook Bankruptcy | SpendEdge’s Take on the Strategies to Secure Stability in the Current UK Travel Industry

While the collapse of UK’s oldest travel company Thomas Cook did not yet hammer the last nail in the coffin of the UK travel market, it definitely did change the consumer outlook about the UK travel industry at least for the next few years. Such a high-profile casualty has also laid bare some disturbing fact for the global travel management industry. The fact states that globe trotters are gradually shifting their preference towards online booking sites rather than travel agencies to fix their travel itineraries. This has been acting as the antagonizing force that is slowly corroding not only the UK travel market but also other associated industries and is held responsible behind the demise of Thomas Cook.

Lack of visibility on the real-time picture of the UK travel market market is resulting in misinformed business decisions that are reinstating the global apprehension of declining ROI for buyers in the UK travel industry. Get complimentary access to our procurement platform to gain immediate access to such real-time insights into the UK travel market.

Reeling under the impact, stakeholders in the UK travel market are introspecting their future growth prospects and the next course of actions to solidify their positions. However, their basic approach towards seeking growth in the future UK travel industry has started in the wrong direction. These approaches are merely upgrades of their initial business blueprint and will bring nothing revolutionary on the table. Let’s first start with some of the imposing factors that stakeholders in the UK travel market must focus on while devising action plans to avoid the repetition of the Thomas Cook fiasco.

The Might of the Media

Gone are the days when hapless consumers had to wait for an eternity to seek action on their complaints pertaining to their travel itinerary. Nowadays, all it takes is just typing a few words in the digital media which will be enough to issue the death warrant for enterprises in the UK travel market. Such enterprises should take that extra and cautious steps while partnering with travel management suppliers who can cater in accordance to consumer’s emotions in the UK travel industry.

Getting information from the market experts is even better when you get immediate access to them. Request a free demo of our procurement platform to get an instant access to the real-time trends and strategies you should adopt to stay competitive in the UK travel market.

Get an instant access to the real-time trends and strategies you should adopt to stay competitive in the UK travel market.

Shortage of Low-cost Labor to Serve in the UK Travel Market

The UK travel industry is one of the many industrial casualties claimed by the ravages of Brexit. The uncertainties over Brexit is severely restricting import of low-cost labor from foreign countries which is creating gaping holes in the hospitality department in the associated industries in the UK travel market. The hotels and accommodation and the air charter services industries are among those affected sectors which are incurring an exponential expenditure on labor owing to the shrinking labor supply pool. Naturally, such skyrocketing expenses are demotivating enterprises from improving their hospitality which as a result is turning away a huge chunk of consumers from boutique hotels and accommodations.

Sustainability Concerns

Millennials are prioritising sustainability while picking their choice of travel services providers that is creating a huge impact in the demand growth in the UK travel market. While some of the air travel services providers are fortifying their fleet with fuel-efficient aircrafts, most of the companies are shying away from doing the same fearing an exponential rise in the operational expense. In the long-term, this is severely eschewing their demand among the proliferating environment-conscious millennials, thereby impacting the overall growth prospects in the UK travel industry.

Do not let market uncertainties impact your ROI. Gain an edge above your competitors and accomplish your revenue goals in the UK travel market by consulting with our experts.

How to Deal with Factors that are Challenging the Growth Prospects in the UK Travel Market

A simple search in the internet will furnish stream of results that claim their credibility in addressing some these potential challenges in the UK travel industry which is again not false. But against the backdrop of global events such as Brexit and the recent bankruptcy of Thomas Cook, the need of the hour is a solution that is as unique as a challenge in the UK travel market. Leveraging such solutions can help to address and eradicate any business risks from its core in the UK travel industry. SpendEdge’s exhaustive repository of procurement intelligence reports has answered to challenges that are typical to the UK travel market and boast of alleviating the potential risks for some of the leading names in the UK travel industry. Some of the strategies are highlighted below:

Value-added Services Offered by Suppliers

In the UK travel market, be it a domestic or an international travel itinerary, the task does not stop at printing the ticket for the traveller. It involves other fringe services which add significant value to the overall travel experience of a travellers. In the UK travel market, buyers are advised to assess supplier’s capability to provide value-added services such as assistances on booking status, flight delay information, mobile or online check-in facilities, seat selection, assistance in lost baggage claims, travel insurance, and meal preferences.

Service Quality Assurance

Service quality assurance by category service providers is also an important KPI in the UK travel market. Quality of services is evaluated by category managers by using various parameters such as in-flight food, entertainment, and medical services; delays in flights; and responsiveness and services of the ground staff. Such suppliers are known to maintain a record of the customer sentiment in the current UK travel market and include regular improvisation in their services.

Enterprises in the UK travel market are getting ground-breaking results leveraging supplier selection strategies recommended by SpendEdge’s procurement intelligence report on the air charter services market. Download the free sample.

Report Snapshot

Title

Global Travel Management Industry – Procurement Market Intelligence Report

This procurement intelligence report provides insights to help identify key sourcing opportunities, spend dynamics, and procurement best practices for travel management services.

Global travel management-170x227

Sustainability measures

Buyers in the UK travel market are advised to engage with suppliers who are adopting fuel-smart initiatives focus for the conservation of fuel and exploration of alternative energy sources for aircraft. They help gather data, analyze the potential impact of fuel costs and consumption, and provide information on alternative fuels and fuel conservation techniques. Optimal scheduling of routes and the use of GPUs when parked can enhance fuel efficiency.

While strategic supplier partnership is crucial to optimize procurement spend, lack of real -time insights into current supply market scenario results in sub-optimal partnerships. Get complimentary access to our procurement platform to gain immediate access to supplier selection strategies.

healthcare industry

Should Companies Re-consider their Decision of Investing in the Healthcare Industry?

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest newsletter on why should companies re-consider their decision of investing in the healthcare industry. The article offers detailed insights into the US healthcare industry and outlines the areas that might witness a downward sliding growth curve.  The article also highlights how developing effective healthcare supply chain management capabilities can help companies make pharma products and devices affordable for people.

Are Companies in the US Healthcare Industry Wading in Troubled Waters?

Despite holding a major share in the US economy and featuring in the list of top-five best performing industries, the healthcare industry is currently witnessing a steady increase in consumer spend. It is eclipsing some of the major industries in terms of spend growth and is expected to pose numerous challenges for potential investors.

This article will help you navigate through key areas in the US healthcare industry that might witness a downward sliding growth curve. Specifically, it will analyze the rippling effect of the tariff war between China and the US on companies. To help you handle this situation, our experts have also listed procurement best practices that are attuned to imposing challenges by performing a detailed US healthcare industry analysis.

Why You Must Develop Effective Healthcare Supply Chain Management Capabilities?

Our healthcare industry analysis shows that companies of today are striving to align with rapidly changing markets and complex supply chains. The increasing demand for affordable and effective healthcare products in emerging economies are forcing them to improve the performance of the healthcare supply chain. However, most companies fail to understand the strategic benefits of an efficient healthcare supply chain.

The article provides a deeper understanding of the healthcare supply chain and highlights how it can help firms make pharma products affordable for people. Also, it shows how better healthcare supply chain management can act as a revenue accelerator for companies and improve access to short supply products.

Key Strategies to Get More Out of Your Healthcare Procurement Process

Most companies do not pay much attention to the procurement process. They overlook the fact that poor inventory management can result in delayed procedures and higher procurement costs.

To address all such problems, it is imperative for companies to perform healthcare industry analysis and identify ways to improve the procurement process flow. Companies must develop an effective pricing strategy and examine the pricing structure to manage contracts better. While doing so, companies should also improve the accuracy of their orders by adopting a computerized provider order entry (CPOE) system. This article will help you identify more such strategies that can be adopted to improve the process efficiency.

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consumer electronics industry

Consumer Electronics Industry: Top Practices to Consider While Improving the Procurement Process

Consumer Electronics Industry Overview      

The consumer electronics industry has always been characterized by a complex supply chain network with a high level of subcontracting. Companies are extensively outsourcing services, thereby increasing the large intermediary contract manufacturers and suppliers. They are witnessing a steady rise in the cost of purchasing and doing business. Businesses, therefore, have started regarding procurement management as their top priority to minimize the overall spend and keep pace with changing business demands.

However, revamping the process is not an easy task. Companies in the consumer electronics industry must adopt procurement best practices to lower costs, enhance the process efficiency, and have a significant impact on the cost-income ratio.

Want to know about strategies adopted by companies in the consumer electronics industry to keep pace with changing customer demands and reduce spend? Request a free proposal and we will get back to you with industry-specific insights.

How Firms in the Consumer Electronics Industry Can Improve the Procurement Process? 

Improve spend transparency

Creating a transparent procurement process is the baseline to unlock potential savings and achieve operational excellence. To ensure spend transparency, companies in the consumer electronics industry must define and implement the procurement policies properly. They must document every step of the procurement process and manage potential suppliers to get the best possible terms during every purchase. Regular audits should be conducted to improve contract visibility. Companies should also consider harnessing the power of automation and data analytics to minimize maverick spend.

Engage with suppliers 

Organizations associate with numerous suppliers to procure specialty services, perform maintenance and repair. It’s crucial for companies in the consumer electronics industry to onboard potential suppliers and manage them. However, the process of scheduling services and managing the vendor can be time-consuming. Having a supplier management process in place can help companies to improve the source-to-contract process and better engage with suppliers. It can help them create a win-win strategy, monitor supplier performance with set KPIs and improve communication with vendors. 

Wondering how profiling the best suppliers can help you manage services better and address consumer electronics industry challenges?

Reach out to our experts for detailed insights into the consumer electronics industry.  

Implement six sigma methodology 

Seeing the technological advancements, adopting six sigma methodology can be an appropriate step for companies in the consumer electronics industry. They can improve internal operations and meet the rising expectations of quality. Six sigma is an excellent methodology to address the requirements for developing new products that necessitate faster product development processes and shorter product lifecycles. It helps companies to reduce dollars spent on reworking defects and improves the level of customer satisfaction.

Manage contracts effectively

While managers look into the contracting process right from the agreement in principle to contract execution, they fail to completely unlock the value many times. As a result, they face challenges such as inconsistency across contracts, slow processing, and supply chain issues. Organizations must maintain a centralized data repository to create, store, and maintain contracts. Also, they should leverage the spend optimally to reduce costs and mitigate risks.

Inability to manage contracts efficiently can result in lost revenues for businesses. Give SpendEdge a try by requesting a free demo of our procurement platform and gain exclusive insights into the consumer electronics industry to improve contract management.  

Standardize processes and manage risks 

To achieve economies of scale, companies need to standardize processes and parts produced in different locations. This will enable them to manage product quality effectively. They should also consider developing a risk management strategy to tackle issues such as out-of-balance inventories, flexible capacity, and redundant suppliers. The real cost of holding inventory accounts for 20-30% which is much higher than the cost of ordering items.   

Willing to unlock procurement excellence and gain a competitive edge in the consumer electronics industry? Request for more information to obtain the consumer electronics industry overview. 

Request free proposal

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