Casestudy Archives - SpendEdge

Category: Casestudy

Addressing Volatile Commodity Prices for a Steel Company by Conducting Price Benchmarking Study

Global Steel Market Overview

Prices for commodities in the global steel market are fueled by several factors including trade disputes, reduction in steel capacity and environmental disasters occurring during a year. Steel companies must anticipate turbulence in the global steel market and analyze factors resulting in price fluctuations. They must assess risks that can drive down prices and threaten the stability of the steel market. This case study is a classic example of how SpendEdge helped a steel company address volatile commodity prices and capitalize on positive commodity price changes.

Business Challenges Faced

The client, a leading steel company headquartered in the US was facing challenging business conditions and volatile commodity prices, thereby, compelling them to deliver high cost savings. They were looking to gain commodity insights to make inform pricing negotiation discussions with suppliers in high-spend categories while reducing costs and improving contract terms. The company, therefore, decided to collaborate with SpendEdge to leverage its price benchmarking services.

Addressing volatile commodity prices is crucial for companies to reduce costs and contract terms. Request a proposal to access our price benchmarking solutions for FREE now!

Our Research Approach

To help the client address volatile commodity prices, the experts at SpendEdge mapped the current costs of the company’s various commodities against underlying price indexes. They conducted a detailed price benchmarking study and provided insights into market rates and trends. Also, the experts analyzed market dynamics, price movements, availability of alternative suppliers and products, financial performance, and forex rates to provide insights into various cost drivers and visibility of the commodity landscape.

The insights provided to tackle volatile commodity prices helped the client to present fact-based arguments during pricing negotiations. The experts identified key demand-based and commercial negotiation levers and enabled the client to make informed supplier negotiation discussions. The solutions offered helped the client to better understand the fundamentals of the commodities.

Wondering how you can analyze different cost drivers and gain pricing insights? Reach out to our experts for customized solutions.     

Engagement Outcome   

Conducting a price benchmarking study not only helped the client to address volatile commodity prices, but it also enabled the client to capitalize on positive commodity price changes and mitigate negative changes. The recommended negotiation levers resulted in savings worth £2 million (10% of spend) across its key commodity suppliers. Tracking key commodities regularly, and on a long-term basis helped the client make better sourcing decisions and supplier management going forward.

Conducting a comprehensive price benchmarking study is imperative to tackle volatility prices. Subscribe now to enjoy free access to our web-based platform for better insights.

Effective Ways to Address Volatile Commodity Prices

1. Develop a comprehensive understanding of the underlying cost and price drivers of the full breadth of commodities sourced globally.

2. Consider trade-offs involved in buying decisions and evaluate if risks tied to more uncertain commodity prices are worth the received discount.

3. Develop contracts that assign these risks more equitably between buyer and supplier.

To know how you can address volatile commodity prices, request more information from our analysts.

Enabling a Construction Materials Company to Unlock Value from Strategic Suppliers through Specific Supplier Insights

US Construction Materials Industry Overview

The construction materials industry consists of a wide variety of companies ranging from mining, quarrying to processing of raw materials and suppliers. As one of the most important participants in any construction project, construction materials suppliers provide resources in the required measure and deliver them at the right times to complete projects according to schedule. However, projects do not always go as smoothly as planned. Companies face a plethora of challenges to identify strategic suppliers, analyze their performance, and mitigate risks associated with them.

Business Challenges Faced

The client is a large construction materials company in the US having a longstanding relationship with SpendEdge. They had segmented their suppliers to identify key strategic partners to assess opportunities to drive value while managing and mitigating risk. However, the stakeholders of the company lacked holistic visibility around supplier performance, financial and operational risk associated with suppliers, opportunities to collaborate, and progress on key initiatives. This led to ineffective supplier management, and a disconnected approach to managing supplier relationships. The Chief Procurement Officer, therefore, asked SpendEdge to provide necessary insights that can help drive maximal return from strategic suppliers.

The inability to identify strategic suppliers can make it difficult for construction materials companies to complete projects on time. Request a free proposal to access our tailor-made solutions.

Our Research Approach

SpendEdge deployed a team of experts to drive 360-degree visibility into suppliers and helped the client shift from traditional relationship management to more proactive and collaborative supplier engagement. They collected relevant data from both internal and external sources and delivered a holistic view on strategic suppliers against key criteria – financial metrics, strategic developments, product launches, M&A, innovation and collaboration opportunities, risk management, and performance.

The insights provided helped the client to identify strategic suppliers that could provide the most opportunity for joint initiatives and ultimately deliver value through increased efficiency, more collaboration, and innovation. This resulted in better savings and cost avoidance. The solution provided helped the client to assess potential financial weaknesses of suppliers and devise action plans to minimize the risk.

Want to gain supplier-specific insights to identify the best fit suppliers for your business? Reach to our experts for comprehensive insights.

Engagement Outcome   

Extensive evaluation of the capabilities of strategic suppliers helped the construction materials company to avail materials at better prices and achieve $35 million in cost savings. The predictive approach adopted by our experts rather than simply descriptive intelligence on the supplier network further enabled informed decision making.

Identifying the right suppliers is crucial for companies to procure quality materials at the right prices. Request free access to our web-based procurement platform to keep up with the construction materials market insights. 

Procurement Challenges Facing the Construction Materials Industry

1. Worker shortage and retention is one of the key challenges faced by construction materials companies. The industry suffers from a lack of new blood and material suppliers find it hard to keep employees onboard and improve labor management.

2. Adopting new technology is the need of the hour for companies to improve their operations. However, companies struggle to find the best technology to adapt and implement.

3. At times, delivery from the manufacturer may be delayed, or materials may only be procured from specific locations. This makes it difficult for material suppliers to manage their supply chain.

To know how you can tackle these challenges and gain a competitive position in the construction materials industry, request more information from our experts.

Purchase Price Variance Analysis: How it Helped a Drinks Brand to Gain Visibility into $70 Million of Future Purchases

Global Beverage Industry Overview 

Considered as one of the largest marketplaces of the 21st century, the beverage industry has come on its own in the last few years. The industry has undergone a spate of changes owing to ever-changing consumer demands and innovations. This has consequently increased the challenges for companies operating in the industry. Rising awareness for nutrition-friendly and sugar-free products has coerced companies to bring about surplus changes in the existing manufacturing process and improve cash flow. They are required to reduce operating costs, gain greater visibility into purchases, monitor price variances, and manage large transactional volumes to ensure profitability.  

Business Challenges Faced

The client is a multinational soft drinks company with an extensive product portfolio of famous drinks in more than 50 countries. The procurement model of the client included numerous third-party contract manufacturers for the purchase of raw materials and packaging. However, this diversity was negatively impacting budgeting and cash flow as the transaction parameters such as pricing, lead times, and minimum order quantities set by the client’s procurement team were different than that of contractors and resulting in frequent discrepancies between contract and invoice prices. The client, therefore, decided to engage with SpendEdge to track purchase price variance for different raw materials and improve cash flow.  

Tracking purchase price variance for different raw materials crucial for companies to improve cash flow. Request a proposal to access our price forecasting solutions for FREE now!

Our Research Approach

The experts at SpendEdge analyzed the procurement and manufacturing data of the client. This helped them gain vital insights to develop a process that could gain raw data from third-party manufacturers, standardize and consolidate it for effective analysis.

Conducting purchase price variance analysis helped the client to analyze the complete data set and compare the purchase order prices to internal price standards and create a price variance calculation tool for the future. 

A full picture of the entire network was presented which helped the client to proactively monitor and control purchase orders. Tracking purchase price variance further facilitated the team to minimize growing over-spend. The solution improved cost forecasting, thus, enabling the client to better predict the cost of goods sold, and optimize product costs.

Wondering how you can proactively monitor and control purchase orders? Reach out to our experts for customized solutions. 

Engagement Outcome   

Monitoring purchase price variance helped the multinational soft drinks company to identify purchases that had some variance to expected costs. The solution increased accuracy to 50%, significantly reducing the volume of rework for the client. Obtaining insights into the procurement function further helped the client to build business processes, manage large transactional volumes, and analyze different data sources. The consolidated analysis provided visibility into $70 million of future purchases.

Managing large transactional volumes requires tracking purchase price variance periodically. Subscribe now to enjoy free access to our web-based platform to obtain comprehensive insights. 

Tips to Calculate Purchase Price Variance 

1. The assertion of material purchase price variance becomes distorted if the company does not analyze the current effect. So, take current effects into account as it might constitute 30% to 80% of the overall deviation.

2. The key indicator-purchase price variance cannot be directly calculated without knowing prices for material in the previous period. If historical prices are known, companies can create default values.   

3. Purchase price variance for two materials or of two suppliers can only be compared if the same Incoterms apply.   

To know how you can track or measure purchase price variance for different materials, request for more information from our analysts.



Identifying Major Growth Opportunities for a Multinational Beauty Products Company by Performing Opportunity Assessment

Global Cosmetics Industry Overview

The global cosmetic market grew over 5 percent due to growth in the main product categories such as skin care, hair care, and makeup products in 2019. However, companies are facing predicaments in expanding their business. They feel the need to conduct a formal opportunity assessment to boost ROI and compete with other multinational corporations. This case study is a classic example of how we helped a leading beauty products company to validate business requirements and boost ROI.

Business Challenges Faced

The client is one of the leading global beauty products companies with an extensive portfolio of reputed beauty brands sold in more than 30 countries. Driven by a surge in demand for skin care products across the region, they wanted to perform a detailed analysis to identify opportunities for growth before expanding their offerings. The company collaborated with SpendEdge to expand its skincare product range in the European region over the next two years, with the aim of becoming a market leader in countries such as the UK and Spain. The company’s leadership wanted extended support to understand existing spend dimensions and validate business requirements that would help them prioritize initiatives for growth.

Performing an opportunity assessment is crucial for companies to prioritize growth initiatives. Request a proposal to access our opportunity assessment solutions for FREE now!

Our Research Approach

Since, the client was looking for a range of skills across research, analysis and consulting – our opportunity assessment solution was the best fit. Our team of analysts assessed the overall performance of the client’s procurement function in the European region – 20+ markets and obtained actionable data for understanding the supply market and evaluate existing spend dimensions.

The insights from our opportunity assessment report helped the client to understand the market from both suppliers’ and customers’ perspective and narrow down options for the business. This helped the client to understand consumer behaviors, conduct need analysis, and devise an effective purchasing strategy. Also, the report provided the necessary insights required for the lean-agile approach taken by the organization to drive early value and boost ROI.  

Wondering how you can develop an effective opportunity assessment template and gain insights to boost ROI? Reach out to our experts for customized solutions. 

Engagement Outcome   

SpendEdge’s opportunity assessment solution helped the multinational beauty products company to create a road map for expansion in the European region and increase revenue by €20 million in the first six months.By understanding supply market drivers and expanding its presence in the desired categories, the company is expecting to achieve €50 million in revenues. 

Conducting an opportunity assessment involves evaluating the sourcing and procurement process. Subscribe now to enjoy free access to our web-based platform to obtain better insights to improve the process.  

How Can Opportunity Assessment Services Benefit Companies? 

1. It provides businesses an opportunity to assess the financial viability of supply market opportunities.

2. It helps companies to analyze competitors and consumers on multiple levels and understand if the demand for a product or service is seasonal or year-round.   

3. It streamlines marketing and procurement functions to boost the company’s ROI.

To know how you can develop an effective opportunity assessment framework, request for more information from our analysts.

A Fortune 500 Global Pharmaceutical Company Develops Commodity Procurement Strategy to Ensure Cost Containment

Global Pharmaceutical Industry Overview

As expenditure control becomes prominent in the pharmaceutical industry, companies are compelled to return to old mainstay of the finance portfolio i.e., sourcing and procurement. Sourcing focuses on supplier selection and manufacturing supply chain whereas procurement drives the acquisition process for goods and services. Companies must take a more strategic approach to address pricing pressures and manage the contract process efficiently across the global supply chain. This case study is a classic example of we helped a pharmaceutical company to achieve its procurement objectives.

Business Challenges Faced

A fortune 500 global pharmaceutical company was facing predicaments due to overdrawn budgets and increased spend. The ineffective purchase planning and poor negotiation strategies were dwindling their market share. The client wanted to stay abreast of market movements of key categories and commodities in order to ensure cost containment, better plan the budget and improve supplier negotiations. The company, therefore, decided to engage with SpendEdge to leverage market intelligence services to devise a successful commodity procurement strategy and meet their business objectives. 

Improving purchase planning and negotiation strategies require companies to leverage market intelligence services. Request a proposal to access our procurement market intelligence solutions for FREE and develop an effective commodity procurement strategy.

Our Research Approach

To help the client build an effective commodity procurement strategy, the experts at SpendEdge analyzed cost drivers for various spend categories. They reviewed existing contracts and identified potential opportunities for spend management. Also, they assessed variables that could be correlated with price movements of key commodities such as agricultural, fuels, and petrochemicals. Collating data related to the cost structure, spend, commodity forecast helped the client to develop inflation forecasts at category, regional and global levels.

The insights offered facilitated the client to present fact-based arguments during supplier negotiation and make informed contracting decisions based on the expected market movements.  Understanding the underlying fundamentals of commodities prices created the basis for informed sourcing decisions, budget planning, and supplier management. Tracking the inflation across key commodities also provided the client with the information required to devise a sound commodity procurement strategy.

Wondering how you can track inflation across key categories and analyze cost drivers to create a commodity procurement strategy? Reach out to our experts for customized solutions. 

Engagement Outcome   

The engagement delivered tangible benefits to the client and helped them achieve yearly savings of $15 million though dedicated forecasting. The commodity procurement strategy further facilitated better negotiations and savings of $3 million to the client.  

Achieving substantial savings require commodity procurement strategy and real-time insights into every aspect of procurement. Subscribe now to enjoy free access to our web-based platform for better insights. 

Road map for Commodity Procurement Strategy

1. Perform spend analysis and aggregate total purchases across all organizational divisions.

2. Examine the supply industry, determine major suppliers, and understand competition dynamics.

3. Identify cost and performance drivers for specific supply or service in the commodity strategy process.

4. Develop a commodity acquisition strategy based on commodity profile.

To gain actionable insights to develop commodity procurement strategy plan, request for more information from our analysts.

American food industry

Generating $25 Million in Free Cash Flow for a Company in the American Food Industry – A Success Story by SpendEdge

American Food Industry Overview 

In the face of significant headwinds, profits in the American food industry have fallen significantly. Factors such as increasing competition, especially from private players and discounters and value-conscious purchasing from customers are further putting downward pressure on prices. Companies are finding it hard to keep up with new trends, demand volatility, portfolio complexity, and development costs. Businesses, therefore, are compelled to identify innovative ways to reduce total costs and unlock hidden value in the supply chain.

Business Challenges Faced

The client is a well-known name in flavor, spices, and seasonings with facilities in 10 nations. Until last year, the company’s procurement function was regionally focused, operating separately from other parts of the supply chain. However, the business environment was changing rapidly-creating unrelenting pressure to generate more cash savings that could fund business expansion and offset agricultural commodity price increases. The company wanted to build a globally coordinated and aligned supply chain while focusing on category management and supplier integration. This required insights that could enable the company to create a supply chain framework. The client, therefore collaborated with SpendEdge, to gain deep-dive insights into the American food industry.  

The inability to generate more cash savings can prohibit business expansion for companies in the American food industry. Request a free proposal to access our tailor-made procurement market intelligence solutions.

Our Research Approach 

The analysts at SpendEdge rallied around the vision provided and conducted an in-depth analysis of the American food industry. They offered actionable insights that helped the client to align vision with strategy and create a roadmap for execution that could capture the immediate value and build momentum. This helped the client to broaden supply chain operations and overcome the bottlenecks of cost savings when dealing with agricultural materials with long growing cycles.

The team invested time in analyzing and identifying the successful strategies adopted by best-in-class companies to build new processes and gain more value out of standard processes. Also, they reviewed essential parts in the distribution network and found out the opportunities for growth. This facilitated the client to have a better idea of what it takes to expand the business and think strategically about revenue, cost, and asset utilization.    

Want to know how our customized American food industry analysis helped the client to identify opportunities for growth?

Get in touch with our experts now!   

Engagement Outcome 

With comprehensive insights into procurement functions in the American food industry, the client improved supply chain management. The strategies devised by them resulted in 20% procurement cost savings in the first quarter. The company was also able to $25 million in free cash flow, thereby facilitating procurement transformation into a global process.

Gaining accurate supply market insights is crucial for companies in the American food industry to improve the supply chain. Request a free demo to access our web-based procurement platform and gain reports across 800+ categories. 

Procurement Strategies for Companies in the American Food Industry  

  • Improve forecasting abilities by analyzing the links between prices and external factors. 
  • Increase product value and sales through value-added processes and ingredients. 
  • Build a better understanding of the role of different players across the whole value chain.

To know in detail about the strategies to increase share in the American food industry, request more information from our experts.  

packaging sourcing strategy

Realizing Savings of $15 Million in Packaging Spend for an FMCG Company – Packaging Sourcing Strategy

Global FMCG Packaging Market Overview 

The global FMCG packaging market is expected to grow at a CAGR of about 4.2%. These numbers will be primarily achieved through slight growth in developed markets and stronger growth within emerging markets. However, such growth trends present additional challenges for procurement teams. They are tasked with evaluating the geographical balance needed between their production facilities and suppliers’ production facilities. Segments of the packaging industry prefer local sourcing strategies, whereas others look for more regional or global strategies. This makes it critical for companies to evaluate the possibilities surrounding these options.

Business Challenges Faced 

The client is a renowned FMCG company with operations spread across 15 countries whose major products rely on packaging to support numerous functions throughout the supply chain. But packaging became one of the challenging areas of spend for the procurement team due to factors such as brand equity, product protection, product quality, customer behavior, and supply chain. The company started to find it difficult to embrace such complexities and implement strategic sourcing approaches to the sourcing of packaging that could help them realize significant cost savings and supply chain efficiencies. The company, therefore, decided to collaborate with SpendEdge to develop an effective packaging sourcing strategy and gain an advantage in the extremely competitive marketplace.

Developing an effective packaging sourcing strategy is crucial for FMCG companies to reduce unnecessary spend. Request a proposal to devise a successful packaging sourcing strategy plan for FREE now!

Our Research Approach 

Considering growth trends in developed and emerging markets, the experts at SpendEdge identified three key practices to develop an effective packaging sourcing strategy. These practices involved spend aggregation, supplier evaluation, and total cost optimization. 

To tackle spend aggregation, the team provided in-depth information that could help the client increase their spend volume and improve leverage across the supply base. They pulled spend together locally, regionally and globally, thereby providing a strong opportunity to improve spending leverage. 

Critical to any packaging sourcing strategy is the ability to evaluate suppliers. The experts identified data elements that were crucial for the selection of best suppliers and collected information in areas such as business profile, growth strategies costs, packaging technologies, manufacturing capabilities, and distribution capabilities. This advanced supplier data collection helped the client in the evaluation of suppliers and the alignment of their capabilities with the packaging sourcing strategy. 

The experts also explored the other price and non-price factors such as lead times, capacities, supply continuity planning, quality and price stability that could impact the product, supply chain, and overall packaging strategy.   

Wondering how developing packaging sourcing strategy development could help companies improve supply chain efficiency?

Reach out to our experts for customized solutions.  

Engagement Outcome 

With the right packaging sourcing strategy, the client was able to embrace the complexity of packaging procurement, and benefit from introducing supplier innovation and a broader evaluation of total value. It was also able to realize savings of $15 million in packaging spend annually.

Creating a packaging sourcing strategy template requires gaining real-time insights into every aspect of sourcing. Subscribe now to enjoy free access to our web-based platform for better insights. 

Tips to Create an Effective Packaging Sourcing Strategy

Tips to Create an Effective Packaging Sourcing Strategy

To know how an effective packaging sourcing strategy can help your business identify substantial savings opportunities, request for more information from our analysts.

pharmaceutical market

Identifying New Cost Reduction Opportunities and Reducing Procurement Spend by 30% for a Company in the UK Pharmaceutical Market

UK Pharmaceutical Market Overview

The impact of Brexit in the UK pharmaceutical market is not fully known. Slowed market growth, Brexit implications and inflated drug prices are still a major concern for companies. In such a scenario, there is a greater need for investment in the role of procurement to help address complexities. Companies must take a more strategic approach to maintain increasingly complex supply chains and address pricing pressures. This a classic example of how we helped a leading company in the UK pharmaceutical market to reduce procurement spend.

Business Challenges Faced

Due to operations in emerging markets as well as legal, regulatory and supply-chain related challenges, a leading company in the UK pharmaceutical market was facing predicaments in addressing the diminishing margins. Their stock prices were getting impacted and efforts to find innovative ways to increase turnover were not rendering substantial results. The client, therefore, decided to collaborate with SpendEdge to reveal significant untapped value potential for the pharmaceutical market – procurement. The key objective behind this engagement was to identify new ways to raise revenue and improve efficiency in different business areas. 

Inability to address the diminishing margins can impact the procurement function of companies in the UK pharmaceutical market. Request a free proposal to access our tailor-made solutions.

Our Research Approach

To cater to the specific requirements of the client, the experts at SpendEdge recommended standardizing processes and supporting information-sharing between cross-functional experts. The developed strategies involved planning and forecasting and setting supplier KPIs. In the next step, the experts analyzed the key suppliers and implemented service-level agreements to help companies improve supplier management, trim the list of suppliers and reduce indirect spend. In the final step, the team focused on innovation in sourcing and procurement. They conducted peer benchmarking to set up strategic partnerships with suppliers and vendors, involving them early in the product development phases and creating incentives for suppliers to bring in novel ideas about how to reach new markets via new sales channels.

Want to gain detailed insights into the UK pharmaceutical market to reach new markets and generate revenues?

 Get in touch with our experts now!     

Engagement Outcome

The unmatched expertise offered by SpendEdge helped the client to introduce innovative concepts that go beyond ‘traditional purchasing’ to improve efficiency and realize new cost reduction opportunities in the UK pharmaceutical market. This reduced 30% of the total procurement spend and enabled CPOs to set up strategic partnerships with suppliers.

Identifying cost reduction opportunities is crucial for companies in the UK pharmaceutical market to minimize the procurement spend. Request free access to our web-based procurement platform to keep up with the latest market insights. 

Steps to Devise an Effective Procurement Strategy

  • Obtain data from internal stakeholders and suppliers to analyze the existing spend.
  • Perform fact-based analysis to understand your organization’s needs clearly.
  • Analyze market conditions to know your market and suppliers better.
  • Identify procurement best practices that can eliminate the existing inefficiencies.
  • Develop a measurable, time-sensitive, and realistic procurement strategy.

To gain comprehensive insights into the UK pharmaceutical market to develop an effective procurement strategy, request more information for our experts.  

metals and mining

Increasing Local Procurement by 28% for a Company in the Metals and Mining Industry – A Case Study by SpendEdge

European Metals and Mining Industry Outlook

Metals and mining companies operating Europe are set to remain in recovery mode as a sluggish recovery in mineral prices keep investment activity subdued. Companies must remain cautious and focus on improving balance sheets to protect themselves from potential price volatility. Sourcing locally and developing the local supply base could be an effective way for companies to increase the security of supply, reduce costs, minimize lead times, and gain more favorable negotiations on accessing resources. Also, they could improve access to capital and provide more competitive access to inputs.

Business Challenges Faced 

The client, a leading European company in the metals and mining industry wanted to buy more locally manufactured goods that could match the cost, quality and delivery time expectations while investing in sustainable economic growth. However, the company felt the need to address current barriers to local procurement in host countries. Local suppliers lacked the necessary capabilities and the client required suppliers with sufficient capacity to meet their procurement needs. Also, it was highlighted that procuring specialized equipment was significantly more difficult in-country and finding goods manufactured locally a challenge. 

Inability to devise local procurement strategies can cost metals and mining companies in terms of revenues and flexibility. Request a free proposal to access our tailor-made procurement market intelligence solutions.

Our Research Approach 

To help the client address the gaps and barriers to local procurement, the experts provided supplier insights to create a local supplier database for the tendering process. They recommended breaking up bids to increase access to local suppliers. They embedded supplier development in the tender process by including key performance indicators in their contracts and tracked the spend of suppliers locally.

Moreover, to drive local manufacturing, the experts identified potential markets for certain products. They analyzed factors influencing the client to buy locally. These factors could be broadly classified into themes such as:

  • proactive economic
  • proactive social
  • reactive economic
  • reactive social

(more…)

Supplier risk analysis

How Supplier Risk Analysis Helped an FMCG Company to Improve the Product Quality through the Supply Chain

US FMCG Industry Overview 

Globalization and the fast improvement in high-quality products have created high levels of market pressure for companies. The number of agents involved in the supply chain network has increased, making supplier risk analysis very difficult. For this reason, companies have more delay points and greater uncertainties. Today, greater coordination, communication, and monitoring are required of firms. The obvious problem is that even a minor incident in one part of a supply chain can have disastrous effects on other parts of the supply chain network. Leveraging supplier risk analysis solution becomes imperative in such a situation to ensure the smooth functioning of the supply chain.

Business Challenges Faced 

The client is one of the leading distributors in the US FMCG industry that supplies their imported products to most of the Central American regional market. It distributes popular products with a high volume, and its major supply base includes 30 first-tier suppliers, which are mainly located in America. More than half of the first-tier suppliers are large firms and they are mostly located in Mexico. The company relies heavily on international suppliers. The company, therefore, wanted to examine risk quality from suppliers’ and customers’ perspectives to gain a specific insight into risks in their global supply chain.

Performing a supplier risk analysis is crucial for companies to manage quality risk in the global supply chain. Request a proposal to access our supplier risk analysis solutions for FREE now!

Our Research Approach 

The collection of accurate information related to supplier risks was complex and required analysis and an overall framework throughout the sourcing lifecycle. The experts analyzed all suppliers associated with the organization and identified four major risks. These included quality risk, price risk, technology risk, environmental risk. Based on the supplier risk analysis, the experts recommended a product quality risk strategy program to define action plans for improving the product quality through the supply chain.

The supplier risk analysis solution offered helped the client to terminate suppliers’ relationships with high risks. Also, the information about supplier’s sources and production practices improved visibility in the supplier production process. The client was better able to manage contracts with the main suppliers and implement rules with a quality test policy. The insights provided also helped the client to contract an external organization to inspect, evaluate and implement new companies’ practices in order to improve the flow of goods and information.

Wondering how you can develop an effective supplier risk analysis template and gain insights to mitigate quality risks?

 Reach out to our experts for customized solutions.     

Engagement Outcome 

With the help of supplier risk analysis solution, the company gained better insights to improve, transparency, implement quality control programs, and reduce the product transit time. Risks associated with the organizational structure were identified and action plans were developed to increase the flexibility of manageable quality products.

Implementing a quality control program requires companies to improve the supplier risk analysis process. Subscribe now to enjoy free access to our web-based platform for better insights. 

Benefits of SpendEdge’s Supplier Risk Analysis Solution

  • Gain detailed insights into every attribute of a supplier’s financial stability.
  • Recognize and uncover hidden cost drivers in the customer-supplier relationship.
  • Better plan new products and services based on a good understanding of suppliers’ capabilities.

To know how supplier risk analysis report can benefit your organization, request for more information from our analysts.

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