Category: Blogs

portfolio analysis

Top 4 Benefits of an Effective Portfolio Analysis for Oil and Gas Companies

Balancing production, investments, and returns in today’s lower-for-longer oil price environment are critical challenges for oil and gas companies. Top oil and gas companies are continuing to strive for the right balance of geographies and resource types. An important question that arises is what portfolio of resources can deliver the optimum results across a range of price scenarios?

In an era of higher shareholder expectations and uncertain oil prices, an effective business portfolio analysis is likely to be the priority for oil and gas companies. However, with the availability of innumerable narratives and tools in the marketplace, this is easier said than done. Therefore, oil and gas companies need to do a better business portfolio analysis. With the help of a comprehensive portfolio analysis tool, oil and gas companies can not only optimize their portfolio but also be in sync with the way markets evaluate portfolios in this period of uncertainty.

At SpendEdge, we understand the impact that an effective portfolio analysis can have on your business. And to help companies thrive in the competitive marketplace, our team of experts has highlighted four significant benefits of portfolio analysis that can help in maximizing ROI and deal with the competitive pressure.

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Industrial Automation

Industrial Automation: What the Future Holds

Industrial automation in manufacturing companies entails the use of intelligent machinery in manufacturing plants. Industrial automation systems ensure that processes are completed within the shortest span of time and with minimal human intervention. This requires different control systems that facilitate the operating equipment to execute allotted tasks at the right speed, precision, and endurance on their own. Following the technological advancements in the last couple of decades, small businesses can now afford to adopt industrial automation systems and improve their operational efficiency. Some of the key applications of industrial automation include:

  • Quality control and inspection
  • Food and beverage processing
  • Planning and decision making
  • Packaging and material handling
  • Metal fabrication; machining, welding, cutting, and cladding

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mining industry

3 Procurement Trends That Can Change the Dynamics of the Mining Industry in 2019

Today commodities are moving back broadly into the global market balance but the challenges for the mining industry are far from over. In a world of more complex ore bodies, deeper mines, social and geopolitical risks, growing energy costs, resource nationalism and lack of infrastructure, global mining industry remains under exceptional pressure to control costs, boost efficiency and improve safety performance.

Rising cost is a cause of concern for the mining industry as the strategies of mining companies depend heavily on the current state of the market. Also, the rise in cost is resulting in the declining quality of ore and limited accessibility of new deposits. This will squeeze the supply in the years to come, potentially driving a commodity-price rebound as the global demand continues to rise. So, the companies need to analyze the new procurement trends in the mining industry that can offer exceptional opportunities for efficiency gains and can help in controlling costs as well.

At SpendEdge, we understand the impact that rapidly changing procurement trends can have on your mining business. And to help companies in the global mining industry to reposition their portfolios and excel in the competitive landscape, our team of experts has highlighted three procurement treContact USnds that have the potential to change the complete dynamics of the mining industry in 2019.

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inventory management

Taking a Step Forward towards Better Inventory Management of Pharmaceutical Supplies

Inventory management in the pharmaceutical industry involves complex systems that consist of interrelated and interlocking subsystems. Changes made in one part of the inventory management system have both anticipated and unanticipated consequences in the other part of the system. In recent years, we have witnessed several pathbreaking discoveries in the pharmaceutical industry’s inventory management. However, even small mistakes in inventory management can quickly lead to confusion, increased turnaround times, unnecessary expenses or worse, prescription errors that endanger patient health. Furthermore, the advancements in the pharmaceutical industry also entail several challenges in the global health pharmaceutical delivery supply chain, particularly in meeting the demands for new and personalized therapeutics. 

Inventory related challenges affecting pharmaceutical companies

Inventory management

Inventory management in global health pharmaceutical delivery supply chain involves complex processes which include quantification and replenishment decisions. However, due to the lack of accurate information, there is often uncertainty that results in a negative impact on the company’s inventory management system.

Dependency on human resources

The lack of qualified individuals to fill the logistics-related positions in pharmaceutical companies is being recognized as a threat that results in heavy workload and ineffective role performance. Aside from this, it also leaves key responsibilities that include making supply chain calculations and decisions unattended. On the other hand, along with the utilization of accessible and user-friendly IT systems, pressure on HR capacity can be alleviated by hiring a dynamic team of responsible and trained people equipped with enough knowledge and skills.

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Order management

Demand information or data about the availability of products in the different levels of the supply chain are the primary decision-making factors in order management. This translates to the fact that lack of accurate information would make order management to solely rely on assumptions and experience. Consequently, orders may arrive incomplete, inaccurate or delayed, which can negatively affect product availability and overall inventory management of pharmaceutical supplies.

Warehouse management

Most warehouses do not possess adequate facilities to support large inventories. Relying on third-party logistics might not always be effective due to poor organization and not enough designated area for different functions such as receiving, shipping and storage for both damaged and expired products. In the long run, such unfavorable conditions may ultimately lead to discrepancies in logistics and inaccuracies in inventory management.

Temperature control

Factors such as environmental conditions, particularly temperature could greatly affect drug potency. Hence, failure to provide the right temperature during storage and shipment of pharmaceutical products may result in major product wastage. Refrigerated containers or storage rooms might be available in the warehouses. However, there are chances of gaps in ensuring and monitoring of temperature level. This makes cold chain difficult to maintain.

Shipment visibility

Once the manufacturer sends out the product for delivery, it becomes difficult to track its status at different levels of the supply chain. Besides, the exact date when the products will arrive becomes unknown to both the manufacturer and the recipient.

Shake-off inventory management troubles with informed decisions from our pharmaceutical industry experts. Get in touch!

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Overcoming pharmaceutical inventory management challenges

Some of the top pharmaceutical companies are already doing a stellar job at inventory management, but almost everyone has some room for improvement. Here are some best practices for companies in the pharmaceutical industry to optimize their inventory levels:

Get an accurate count

Pharmaceutical companies can’t manage what they don’t measure. Also, a visual scan of the shelves often proves insufficient to provide the sort of accuracy needed. One of the best solutions to combat this is to conduct an annual physical inventory, supported by a computerized inventory system, and monitored by a designated employee.

Maximize the value of inventory management system

Most computerized inventory management systems lack a perpetual inventory management model. Such systems help in keeping tabs on all products in stock and automatically places an order for more product needed to maintain a certain inventory level. The company will need to adjust the parameters depending on the demand. This ensures that the order threshold and amount match the new future demand. Even a computerized system needs to be monitored and maintained for accuracy.

Shed excess inventory

Pharmaceutical inventory loses value as it ages. So, carrying excess inventory amplifies the risk of losing thousands of dollars on expired, unsaleable products. A pharmaceutical company can’t sell products once they pass their expiration date. Although demand can fluctuate from day to day, a week’s worth of inventory should be more than enough to accommodate even unusual spikes in daily demand.

With a capable supply chain and inventory management process in place, there is no looking back for companies in the pharmaceutical industry. But are you there yet? If not, SpendEdge is here to help. Request a free proposal now!

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soybean oil

A Beginners Guide to Vendor Management and Ways to Tackle the Key Challenges

Vendor management today is not just about comparing prices and finding the supplier with the cheapest price for a product or service, it is ultimately about building better vendor relationships that will ultimately benefit both the parties. Vendor management process allows organizations to control costs, strengthen service, and reduce risk throughout outsourcing the processes to vendors while extracting the most value from the investment.

Vendor management process

For successful vendor management process, companies must take a strategic approach to build and maintain relationships with their best vendors. Good suppliers are hard to come by, so it’s important to nurture the relationships with the suppliers that companies don’t want to lose. Vendor management process is typically broken down into four main steps:

Establish business goals

Define the business goals clearly and be as specific as possible. In order to successfully undertake vendor management, you need to know exactly what it is that you’re trying to achieve. Vendor management becomes easier where there are pre- defined performance parameters to compare.

Choose the best vendor

Companies will have to weigh the pros and cons of different vendors. Some questions to ask here include: Does the vendor have extensive experience? Are they stable? Have they worked in similar environments? Do they have standardized processes and provide economies of scale?

Manage vendors

This is the routine activity of monitoring performance and output. It’s the best way to make sure that the terms of the contract are being fulfilled. This step involves extensive communication to offer approvals, disapprovals, feedback, changes, and everything that is necessary to deepen the relationship.

Consistently meet goals

Companies aim to consistently meet their goals over the course of their relationship with the vendor. This means managing the vendor regularly to better influence and meet performance objectives on a regular basis.

Whether you’re managing 10 vendors or 1,000, SpendEdge can help you radically simplify how you track, manage, and pay your vendors. Request a demo to know more.

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Facility management

Why is Spend Analysis a Necessity for Reducing Facility Management Costs?

The market for facility management services is a multi-billion dollar industry in the U.S. alone. Facility management involves the integrated management of multiple and interdisciplinary technologies, personnel, systems, and processes. The ultimate goal of facility management is to promote an efficient and collaborative environment to meet and fulfill the key objectives and mission of an organization. However, this requires business owners to invest in strategies that are going to allow their facility management personnel to work with large sets log compliancy information, asset maintenance information, and every process through the facility management lifecycle. One of the primary challenges involved in facility management is that as more data points enter a facility, it becomes harder to ensure that accurate asset maintenance records are kept. Due to such factors, companies in the facility management industry are unable to reduce risks and increase operational control.

Key facility management challenges

Efficient facility management involves constantly tackling critical issues every day in the face of a host of obstacles. They are also responsible for bringing together a multitude of distinctive elements. Diligence and flexibility in handling facility management not only defines their success but also that of an entire company. Both large and small businesses must devote a considerable amount of their capital and energy to ensure their facilities are properly maintained and are prepared to meet the challenges of the future.

Cost management

Every instance of demand placed in a facility management enterprise has a cost associated with it. This includes costs incurred on repairs and maintenance, hiring of staff, inventory and supplies, and safety and security. We at SpendEdge, help clients in facility management organizations track cost expenditures, including detailed historical analysis, to allow for proper administrative reporting and reduction of operational costs.

Resource management

Another key facility management challenge is the need to rely on many resources to operate the facility efficiently. This includes both full and part-time staff. It also requires different types of service providers. Furthermore, due to limited budgets, facility management teams are expected to deliver more at lower costs. In this case, facility management companies are left with no choice than to identify their optimal staffing requirements and maintain a constant flow of communication between the team so that they are aware of how to increase the overall productivity and improve efficiency.

Meeting compliance guidelines

It is essential for companies to ensure the statutory regulations for managing their documents. This requires a process to ensure that data is stored correctly. In order to remain compliant, it is also important to stay updated on the legislative changes. Facility management professionals often face problems associated with inadequate record keeping that do not meet the expected compliance standards.

 

One of the best ways to resolve facility management challenges is to bring in a professional and competent solutions provider to help you carry your load. SpendEdge has been helping facility management professionals across the world to build strategies that increase their profits while staying within the budget. Contact us today!

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Cutting facility management costs: What businesses must do


As businesses face the need to utilize state-of-the-art infrastructure to remain competitive, controlling facility management spend becomes more important than ever before. Strategic planning is critical to align capital spending with budgets and ensure proper allocation of resources in facility management. While budgets are typically controlled by individual departments within the organization, there are certain steps every facility management professionals can take to contain costs. Here are five ways facility management can control the overall spend:

  • Purchase Pre-owned, Refurbished or Rental Equipment
  • Preventative maintenance of existing equipment can help reduce operating expenses and create a safer work environment
  • Research the supplier and the equipment through product reviews and testimonials for optimal prices and service.
  • Organize data and analytics to gain better visibility of expenses across the organization and enable the allocation of resources in the most efficient manner
  • Leverage spend analysis to get all the possible benefits from the company’s current spend cube

medical devices

5 Keys to Evaluate Your Inventory Management Process for Biomedical Devices

With the emerging need to delicately balance the medical devices’ security and patient safety, medical device manufacturers are facing numerous challenges like reducing costs, better inventory management, improving efficiency, and allocating resources effectively. The need for inventory management solutions is increasing for medical devices manufacturers owing to the surge in demand for better healthcare products.

Poor inventory management or disconnected systems can lead to operational inefficiency and issues with order fulfillment, which rises concurrently with an increase in the demand. Additionally, it can also result in wastage of time, space, and can increase the cost of operations. Therefore, it is important for the manufacturers of medical devices to understand that creating a feasible model for inventory management is central to the sustainability of their business.

At SpendEdge, we understand the impact that an effective inventory management solution can have on your business. And to help companies manufacturing medical devices in the changing landscape of the medical industry, our team of experts has highlighted five ways to examine their inventory management process and improve their efficiency.

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supply chain management

Top 5 Supply Chain Management Challenges Facing Companies in the Food and Beverage Industry

The food and beverage industry faces a lengthy list of unique challenges in terms of logistics and supply chain management, right from volatile commodity pricing and inventory management to quality and safety requirements combined with frequent new product introductions, high demand uncertainty, complex manufacturing constraints, and perishability. The need for inventory optimization in the food and beverage industry is growing due to the increase in customer demand, expanding product portfolios, and lengthening supply chains.

Inefficient inventory management in the food and beverage industry results in spoilage of products, resulting in bad supply chain management. This results in poor decision making at all the levels of the supply chain.  This leads to a vicious cycle, ultimately reducing sales, profit margins, and customer loyalty.

At SpendEdge, we understand the impact of better warehouse management on supply chain management. And to help companies strive in the competitive food and beverage industry, our experts have highlighted some of the major challenges that they must be aware of and prepare themselves for accordingly.  

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Supply Chain Risk Management

3 Best Practices for Supply Chain Risk Management Planning

When it comes to supply chain risk management planning, a risk can be defined as a broad spectrum of events, from counterfeit products, natural disasters, supplier delay, to theft, part shortages, production interruptions, and even cybersecurity. Every business has a different array of potential risks depending on its verticals, and each of its product has a different risk portfolio depending on its components. The product lifecycle is influenced by an incredible number of variables. Therefore, a comprehensive supply chain risk management planning is required, and many companies, today, are embarking on the journey to reduce the overall negative impact on the bottom line and effectively deal with unexpected hiccups. For companies that don’t have supply chain risk management plans, their primary objective should be to discover the largest risks and figure out strategies to deal with them. In this article, we have discussed some next-level best practices that can push supply chain risk management plans to another level of value and consistency.

Best Practices for Supply Chain Risk Management

Best Practice #1: Site checks must be performed

There are certain kinds of issues in supply chain risk management that can only be discovered with routine, in-depth personal visits, and an understanding of the culture where production occurs. The routine site visits are one of the most impactful methods of not only identifying supply chain risk but also help in developing contingency plans. Undoubtedly, this can be expensive and time-consuming in the case of a supply chain that reaches overseas, but the outcome can be enormous. This is one of the best practices which ensures that if there are any concerns with unsafe working conditions or quality, the companies can immediately take the necessary steps to revise their risk quantification.

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Best Practice #2: Don’t neglect cyber threats

Risks are not always physical but virtual too. There are many stakeholders when it comes to supply chain risk management who assume that supply chain risks come from physical challenges, such as delay in production and shortages, but this is short-sighted. Every supply chain is built on top of IT, whether it is a bill of materials shared between the company and the third-party suppliers, or CAD designs comprising proprietary, patented designs. Threquest proposalerefore, for a better supply chain risk management, companies need to roll cybersecurity risk into the overall supply chain roadmap and prioritize them higher than several physical risks.

Best Practice #3: Ease out supply chain risk with insurance

Insurance companies specialize in risk quantification and working with someone can help procurement companies in their process of putting together proper contingency plans. Some insurance policies cover the own production of the company, such as a custom-built and expensive piece of equipment that would cost millions and take weeks to replace. Therefore, this best practice in supply chain risk management can enable the company to recoup many of the costs involved in case of a critical failure. There are also other insurance policies that cover issues upstream, such as delay in the supply of parts from overseas suppliers. In either case, insurance can never make up for damage to a brand, but it can help lessen the sting of a major supply chain disruption, both in-house and the other side of the globe.


Want to know more about best practices for building supply chain risk management plans? Contact us now!

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category management

Common Category Management Challenges and Ways to Overcome Them

Category management originated from the retail industry. This retailing and supply management concept involves breaking down the products purchased or sold by a retailer into discrete groups of similar or related products. Category management is a systematic approach to managing a set of products as a strategic business unit. However, recently, category management has been gaining ground outside the retail industry and is being widely used in several public and private sector companies. The motive behind it remains the same; products or services that have similar characteristics and similar supply markets are grouped together and treated as a discrete group. While category management has several known advantages, here our category management experts discuss some of the key challenges faced while implementing it.

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Top category management challenges

Getting Stakeholder participation

In several procurement organizations, the stakeholders are either unknown or they are not in close contact with the stakeholders. It is critical to ensure that the stakeholders understand the importance of the category management, which means that they have to put in some work as well. This transforms the stakeholders to active participants and will improve the results for the procurement organization. Without the support of your stakeholders, the results of the new way of working will be disappointing.

Workforce capability gaps

The transformation of an operational department to a more strategic department results in a chance for gaps in the workforce capabilities. This could be because the organization lacks the skills and capability to become the advisor of the business. This situation can overcome by providing specific training and coaching on the skills and capabilities that are needed trequest proposalo the company’s workforce. Furthermore, they can also be provided with coaching-on-the-job, where experts coach the buyers in the new way of working. For capabilities to be enhanced, a budget needs to be made for supporting the training costs for buyers.

Garnering support from management teams

The need for change often comes from the management team of a company. However, during the course of transformation, the same team may display a lack of engagement and operational support. This leads to a transformation that does not fully realize the benefits out of the category management. In order to gain the maximum benefit from category management, there needs to be full support from the management team throughout the transformation. The management team should be available to support with data analysis, value-chain/TCO-analysis, stakeholder meetings, and supplier negotiations.

The SpendEdge Advantage

Businesses can greatly benefit from adopting category management as one of its best practices in procurement. SpendEdge’s category management solutions have the capacity to add value in reducing supply chain risk as well as drive innovation in different supply chain categories. Our category management experts have proven expertise in helping organizations tap into opportunities in order to manage demand, have better cash flow management, and enforce greater compliance of standards from suppliers. Get in touch with us for tailor-made solutions to suit your business.

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