Category: Casestudy

risk assessment

Supplier Profiling: A Case Study on How Performance Assessment Helped a Car Manufacturer to Reduce Sourcing Costs By 19%

The Business Problem 

The client, a leading car manufacturing company in the US, was struggling amid a tumultuous economy. Despite the US being the largest automobile market, their profit margins were shrinking rapidly, and their stock price had taken a tumble. This compelled the client to take a step back and conduct a comprehensive supplier performance assessment as a major chunk of their total production costs were coming from suppliers due to the implementation of a poor sourcing process. They also realized that conducting a comprehensive performance assessment of suppliers was crucial for the company to decrease costs, improve quality, and integrate new technologies.

Is poor planning increasing production costs for your products? Well, not anymore! Request a free proposal below and know how our performance assessment solutions can improve your supplier profiling process.

Solutions Offered

To cater to the car manufacturer’s predicaments and help them reduce operational costs, the experts at SpendEdge tailored a comprehensive two-step research methodology. This extensive research methodology included primary and secondary research coupled with interviews and discussions with industry stakeholders to identify the optimal process to profile suppliers.

In a span of 12-weeks, the performance assessment solution started showing promising results. Their supplier profiling process improved drastically, and the car manufacturer was able to achieve significant cost savings since they were now able to meet all their performance goals. The company was also successful in removing wasteful costs and activities such as extra freight charges, overtime, safety stocks, obsolete inventory, and buying from multiple sources caused by supplier glitches. Moreover, with the aid of SpendEdge’s performance assessment solution, the client was able to better understand supplier performance and industry best practices, which had a subsequent impact on the costs and supplier engagement process.

Interested in conducting a comprehensive performance assessment of suppliers? Request a free demo and know how our experts can help you in understanding supplier performance industry best practices.

Key Findings

The performance assessment solution helped the client to enhance their supplier relationship and design a program to recognize the high performing suppliers. This reduced their sourcing costs by 19% and helped them mitigate financial risks. The supplier performance assessment also helped address factors such as quality, delivery, and cost management apart from underlying qualitative factors.

Why is Supplier Performance Assessment Critical?

With the increasing number of offshore suppliers, supplier performance assessment becomes critical for companies looking to overcome a variety of supply chain challenges. Companies must conduct performance assessment to gain better visibility into their suppliers’ performance, remove hidden cost drivers, and reduce risks by lowering order cycle times and inventory. Also, the supplier performance assessment process helps companies to achieve at least 20% improvement in supplier performance metrics such as on-time delivery, quality, and cost.


Supplier evaluation is crucial for improving the operational performance of companies. Contact our offices below and know how we can help you increase operational efficiency.







vendor risk management

Leveraging Demand Aggregation Solutions to Help a Pharmaceutical Company Achieve Savings of $2.1 Million – A SpendEdge Success Story

The Business Challenge

The client, a leading pharmaceutical company in the US, was facing predicaments in determining the aggregate demand for the total sum of medicines produced by the company. The fragmented and uncertain ordering patterns, different labeling and packaging configurations, and underutilization of available capacity were further increasing the spend of the company. They wanted to reduce their overall cost by increasing supply chain visibility.

Is poor supply chain performance impacting the spend of your company? Get in touch with our experts and know how analyzing the aggregate demand can help your organization to improve the efficacy of their supply chain.

Solutions Offered

To help the pharmaceutical company, the experts at SpendEdge delivered demand aggregation solutions and increased efficiency and transparency in the procurement of medicines. They also adopted a comprehensive two-step research methodology comprising of primary and secondary research coupled with scrupulous qualitative and quantitative data collection techniques.

The demand aggregation solution helped the pharma client to better negotiate prices and facilitate the agreement of contracts with negotiated prices for different volumes. The company upgraded its procurement process as discretionary resource allocation methods were exacerbating existing inefficiencies and process transparency. The demand aggregation solution also helped the company in their large-scale medicine procurement activities and improved the efficacy of its supply chain. This modified the frequency of actual delivery and payment schedules and ensured the timely allocation of resources for payments.

Wondering how price level increases lead to lower spending?

Request a free proposal and know how our experts can help you understand different components of aggregate demand and provide effective demand aggregation solutions to lower spend.

Key Findings

In a span of three months, the demand aggregation solution helped the pharmaceutical company to successfully reduce their financial costs and achieve savings of US $2.1 million. Furthermore, it helped the company to establish a large-scale competitive procurement process and implement strategic purchasing practices.

What is Demand Aggregation?       

Demand aggregation is a method that provides “visibility” into the purchasing requests through the process of coordinating and consolidating individual requirements for companies. Often, when procurement departments working within large companies face various organizational challenges that make it difficult to analyze the spend of the enterprise, demand aggregation can be a highly valuable strategy. It helps companies to improve savings, lower supply management TCO, and provide greater assurance of supply.

Want to know how demand aggregation can help your organization? Request a free demo below and gain detailed insights into our portfolio of aggregate demand solutions.

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supply chain risk management

How Supply Chain Risk Management Helped a Telecom Company to Create Value in the Supply Chain – A SpendEdge Case Study

The Business Challenge

The client, a leading European telecom services provider, wanted to devise strategies to avoid supply chain disruptions caused due to inventory problems, incorrect forecasts, and delays. They wanted to achieve better visibility to ensure the smooth flow of materials and information in production or distribution. This compelled the client to engage with SpendEdge to improve its supply chain risk management capabilities.  The key objectives they were looking to achieve through this process were:

  • Manage supply chain disruptions
  • Gain better control over inventory
  • Improve visibility into the supply chain

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competitive pricing

Developing an Effective Competitive Pricing Strategy to Increase the Overall Savings for a Fast Food Company

The Business Challenge

The client, a well-established fast food company in Sweden, was facing predicaments in sustaining their profitability for the last few years. Their belief that the company’s pricing strategy was incorrect was making them highly skeptical of implementing new pricing initiatives. However, the new top-level management realized the power of competitive pricing and approached SpendEdge to leverage its competitive pricing solutions to enhance ROI.

Companies in the market need to formulate better competitive pricing strategies to stay competitive in the market. Get in touch with our experts and know how competition based pricing can help your organization to achieve better savings and gain higher profit margins.

Solutions Offered

The pricing experts at SpendEdge performed a detailed analysis of the pricing opportunities of transactional and value pricing models to spot quick opportunities. They adopted a research methodology that consisted of qualitative and quantitative data collection techniques to help the client implement a pricing strategy with confidence.

In a span of 12 weeks, the experts implemented a competitive pricing strategy to capture the interest of customers willing to spend on their products. They quantified buyer personas and selected a price that their customers were willing to pay. Also, the competitive pricing strategy ensured that they didn’t increase the prices of the products with the highest margins. Instead, they reduced the sourcing costs of raw materials for these products by identifying suppliers offering better prices. Furthermore, they analyzed the pricing models to figure out the key factors driving the prices of the company’s offerings.

Interested in devising effective competitive pricing strategies?

Request a free proposal and know how our competitive pricing solutions can help your organization to stay ahead of the curve.

Key Findings

The competitive pricing analysis engagement helped the company to raise the prices of their offerings by an average of 3% across the country. This resulted in a 31% increase in the overall savings of the company. Discovering regional variations in pricing helped the client to identify cost-saving opportunities and make prudent business decisions.

What is Competitive Pricing?

Competitive pricing is a strategic process of pricing the company’s products or services in accordance with the competitors in the market. This is often done by businesses selling similar products as the attributes of the products remain similar. Also, competitive pricing takes into consideration factors such as the product’s life cycle and the stage of the product. 

Analyzing the pricing model of competitor companies requires a great deal of market knowledge and expertise. Request a free demo and know how our experts can help you develop better strategies.

 

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portfolio analysis

How Portfolio Analysis Helped a Professional Services Firm to Double Their Profits & Improve Rankings in the Industry – A SpendEdge Case Study

The Business Challenge

The client, a leading professional services firm (PSF) headquartered in California, was facing predicaments in expanding their offerings. The strategies adopted by them to utilize business opportunities and profitability, while providing a robust portfolio that could withstand downturns in certain sectors, were failing miserably. This compelled the client to leverage SpendEdge’s expertise and strategize direct business resources while determining the way for reducing excess spend.

Devising portfolio strategies that can withstand economic downturns can be a tough task for companies. Get in touch with our experts and know how portfolio analysis can help your organization to formulate effective strategies and gain positive business outcomes.

Solutions Offered

To help the professional services firm, the experts at SpendEdge critically analyzed the company’s services and performed a portfolio analysis. They adopted a comprehensive two-step research methodology comprising of primary and secondary research coupled with scrupulous qualitative and quantitative data collection techniques.

During the course of the service portfolio analysis engagement, the professional services firm made prudent business decisions to re-profile their business and devise more accurate business strategies. They focused on improving service offerings that can help them rank in the top tier of the industry. The company also made a large-scale acquisition to increase their footprint outside of the United States, where they had better chances of long-term growth. This resulted in significant downsizing and allowed more investment with those clients and regions where the potential for sustained growth was higher.

Key Findings

Within a span of eight months, the service portfolio analysis helped the company to shift from the most challenging performance year to one of the best financial years. The businesses of the company that were turning financially unfeasible, started growing at twice the rate of the industry average. This doubled the company’s profit and improved their rankings by five positions internationally.

Want to improve the global portfolio’s performance?

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What is Portfolio Analysis?

A critical evaluation of the components involved in a mix of products or services with the purpose of making business decisions that can improve the overall return is referred to as portfolio analysis. Additionally, in terms of securities,  a portfolio analysis refers to an investment portfolio that can help in better allocation of resources and an increase in profits. It highlights the trade-off between the returns on an investment and the risks associated with that investment. The information on returns is then used to perform strategic portfolio analysis for businesses.

Implementing a portfolio analysis tool can cost companies a lot in terms of money and time. To know how our experts can help you perform portfolio analysis, request a free demo and start your free trial now!

 

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market intelligence

How Category Market Intelligence Services Helped a Retail Company to Increase Sales by 150% – A SpendEdge’s Success Story

The Business Challenge

The client – a developing online fashion retail company – was facing predicaments in selling their products. They were finding it hard to position their products in such a way that they can compete with the leading online retail channels in the international market. This compelled them to assess the global market dynamics and drivers that were impacting market trends. They also wanted to develop a market research report that can offer insights into the current situation in the retail market. Moreover, they were looking forward to analyzing competitors’ category strategies to compete with top-level companies in the industry.

Is your business revenue dwindling due to heavy market competition? Get in touch with our experts and know how our category market intelligence services can help you to analyze the global market trends and devise effective marketing strategies.

Solutions Offered

To help the retail e-commerce company devise effective marketing strategies that can tap the potential growth opportunities, the category market intelligence experts at SpendEdge tailored a comprehensive market research methodology. The extensive market research methodology included primary and secondary research coupled with meticulous qualitative and quantitative data collection techniques.

With the aid of the category market intelligence report, the client was able to analyze the performance of the market in a span of two weeks and obtain detailed insights into the latest trends and developments that were going to define the global market.  By targeting the online consumers’ niche, the ecommerce company created an exclusive range of fashion products and achieved a 150% hike in sales after implementing the category market intelligence solutions. Furthermore, our experts offered a category market intelligence report that provided them with the overview of the competitor companies in the international market and the procurement best practices that they can follow. This helped the client to gain buyer insights, analyze risks and understand problems pertaining to suppliers.

Want to know how buyer insights can increase sales?

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Key Findings

The category market intelligence solutions helped the client to gain accurate buyer insights and improve their sales by 150%. The analysis of the competitors’ category strategies guided the company to formulate effective marketing strategies that can maintain the sales by managing key risks in the supply chain.

What Is the Importance of Category Market Intelligence Solutions?

The category market intelligence solutions help companies to determine market size related to their products and gain detailed insights into the latest trends and developments. Additionally, it prepares companies to mitigate risks such as financially unstable vendors, fluctuations in commodity prices, regulatory change implications, and upstream supply chain interruptions in procurement.

Assessing market dynamics and predicting market sizing requires a great deal of expertise. Request a free demo and know how our experts can assist your company with effective category market intelligence solutions.

 

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cost model analysis

Cost Model Analysis: Assessing the Impact of Each Cost Driver on the Overall Cost and Ensuring Low-cost Raw Material Sourcing for a Food Packaging Company – SpendEdge

The Business Challenge

The client, a renowned company in the food packaging industry in the US, was interested in developing a cost model analysis process for their company. The aim of this process was to handle and store at least 1000 units of packaging materials in the inventory. They wanted to assess the impact of each cost driver on the overall cost and gain detailed insights into the costs incurred by their packages to increase the value proposition for their customers. Furthermore, with the aid of a cost model analysis engagement, the client wanted to identify cost elements incurred by their products in the inventory.

Want to know how cost model analysis can help you to analyze the impact of each cost driver for your business. Get in touch with our experts today!

Solutions Offered

To conduct a cost model analysis study for the client, the experts at SpendEdge adopted a comprehensive two-step research methodology, which involved primary and secondary research coupled with scrupulous qualitative and quantitative data assessment techniques. This enabled the client to manage their inventory and supply chains more efficiently.

In a span of three weeks, the client obtained comprehensive insights into the costs incurred by their own packages in material inventory, enabling them to increase the value proposition towards their customers. The cost model analysis also helped the company to determine the total cost as well as cost per activity cost for 1000 units of material. The analysis helped the client to understand negotiation levers adopted by suppliers and ensured low-cost raw material sourcing.

Interested in the benefits of cost model analysis?

Request a free proposal and know how our portfolio of cost analysis solutions can assist your organization.

Key Findings

The cost model analysis helped the food packaging company to identify the key cost elements and determine the costs associated with individual activities carried out in material inventory. They also found out that external storage was a more financially viable solution than internal storage, especially for materials that are stored for a long period of time. Additionally, the client was able to explore the possible cost-saving opportunities and reduce costs related to the packaging system by 19%.

What is the Purpose of Cost Model Analysis?

For businesses to outclass their competitors, it has become imperative to get the most out of every idea, option, and investment. The cost model analysis helps companies to identify the benefits of a business strategy and the costs associated with it. Also, it allows companies to assess the impact of each cost driver on overall cost and help them to negotiate levers adopted by suppliers to ensure low cost raw material sourcing.

Ever wondered how the best in class companies are utilizing cost model analysis engagement? Request a free demo and know how our experts can guide you in conducting a precise total cost analysis.

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material procurement

How Effective Material Procurement Helped a Pharmaceutical Company to Reduce Logistics Costs By 35% – A SpendEdge’s Success Story

The Business Challenge

The client, one of the leading multi-billion-dollar pharmaceutical companies in the world, was facing predicaments in determining the optimal inventory for raw materials. Their material management process of ordering the raw material from suppliers was quite slow and needed to be placed well ahead of times due to long lead-times. This was resulting in differences in the amount ordered and the amount really needed at the time of delivery by the pharmaceutical company.

Are complexities associated with material procurement hampering the growth of your business? Get in touch with our experts and know how our material procurement services can help your organization.

Solutions Offered

To help the pharmaceutical company to better manage the material procurement process flow, the procurement experts at SpendEdge tailored a comprehensive market research methodology. The research methodology involved primary and secondary research coupled with qualitative and quantitative assessments to help the client select new suppliers to purchase in accordance with the company’s internal procurement criteria.

In a short span of five weeks, the material procurement experts at SpendEdge were able to analyze and implement material management solutions to address the uncertainties caused by unpredictable market demands. Their recommendations helped the pharmaceutical company to create appropriate safety stock of raw material that can serve as a buffer against the uncertainties. This reduced their lead times by over 50%. Furthermore, the detailed forecasts and raw material purchasing agreements devised by experts enabled the client to address any potential delays in the material procurement process.

Interested in optimizing budgets for your material procurement process?

Request a free proposal and know how our procurement services can help you reduce excess spend and streamline sourcing processes.

Key Findings

Improvements in the material procurement process helped the pharmaceutical company to maximize the availability of raw materials for internal and external customers. They were also able to minimize warehouse stock of procured raw materials, which reduced their logistics costs for procurement by 35%.

Why is Material Procurement Important?

In recent times, material procurement is considered a strategic function to improve the organization’s profitability. It helps companies to reduce raw material prices and costs,  identify better sources of supply, and reduce lead times. However, material procurement basically depends on two factors: information and supplier relationships. Information can be gained through technology but relationships with suppliers need to be established with time so that products move through the pipeline faster.

The increased quality concerns and regulatory scrutiny is compelling companies to invest in the role of material procurement. Request a free demo and know how our experts can enhance material management for your company.

 

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price forecasting

Price Forecasting: An Effective Tool for Companies to Identify Profitable Products and Predict Fluctuating Oil Prices – A SpendEdge Case Study

The Business Challenge

The client, one of the leading oil and gas companies in the United States, was facing predicaments in forecasting the fuel price spreads and crack spreads for a variety of products. This was hindering the production and refinery planning for the company. Also, with the increase in oil prices and volatility, business strategies and supply chain were getting negatively impacted. This created the demand for a dedicated manufacturing environment and price forecasting solutions for the oil company.

The ability to perform an oil price forecast is vital for companies to implement their business strategies effectively. Get in touch with our experts and know how our price forecasting solutions can help your company in making informed business decisions.

Solutions Offered

To improve the supply chain flexibility, the oil company decided to collaborate with SpendEdge. The supply chain experts at SpendEdge conducted a comprehensive market research, comprising of qualitative and quantitative assessments, to determine how volatile oil prices affect supply chain flexibility and dedicated manufacturing environment.

Since the implementation of transportation strategies and utilization of dedicated manufacturing are based on oil prices, the price forecasting solution helped the client to determine when to reduce inventory levels.  Price forecasting also predicted the appropriate time for the client to shift from just-in-time delivery to better use of transportation capacity. Additionally, the oil price forecast provided necessary insights for the company to switch to shared resources such as third-party logistics carriers and consolidated warehouses.

Want to know how price prediction empowers companies to serve customer demands?

Request a free proposal and know how our portfolio of price forecasting solutions can improve the efficiency of your company to address customer demands.

Key Findings

In a span of two months, our price forecasting solution enabled the company to predict the fluctuation in oil prices and identify the most profitable products in the near term. Reducing the price forecasting error by more than 50% helped the client to precisely position their inventory in the supply chain and address customer demands. Moreover, price forecasting helped the client to reduce inventory levels, expediting costs, and transportation costs.

Why Price Forecasting Is Important in Supply Chain?

As price forecasting helps predict short- and long-term prices of products, companies can accurately analyze the demand and supply of their products. They can shift from quick delivery to cheaper and sometimes slower transportation modes to cut fuel consumption and reduce transportation costs. Also, with the help of price forecasting solutions, they can increase total safety stock in the supply chain and leverage economies of scale.

Oil price forecast requires the analysis of various factors. Request a free demo and know how our experts can assist you with their price forecasting solutions.

 

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supply chain solutions

Supply Chain Solutions: Enhancing Inbound Logistics Process to Meet Short-term Demand Forecasts for a Fashion Retail Company – A SpendEdge Case Study

The Business Challenge

The client, a fast fashion retail company headquartered in Western Europe wanted to leverage supply chain solutions to reduce inventory and the financial costs associated with it.  The client wanted to reduce lead times for the delivery of unique fashion items to offer customers more styles and create a sense of urgency to buy as items often sell out quickly. Moreover, the company was interested in gauging short-term trends that required them to buy bulk quantities of fabric from suppliers in different countries.

Building a fast-moving and finely tuned supply chain requires consistent effort and expertise. Get in touch with our experts and know how our experts can help you with the best supply chain solutions.

Solutions Offered

To build a highly responsive supply chain for the success of the business, the supply chain management experts at SpendEdge analyzed the manufacturing and operational process of the company.  They also carried out qualitative and quantitative assessments to recommend supply chain solutions to build a unique real-time supply chain.

In a span of six weeks, supply chain solutions improved the company’s sourcing process and substantially reduced the time taken for the purchase of raw fabric from suppliers. This improved their inbound logistics process and ensured the timely delivery of their finished goods. It also helped the fashion retail company to compete on flexibility and agility rather than low costs and cheap labor. Moreover, the supply chain solutions empowered the client to reduce the ordered inventory time to three days. This made it easier for the company to retain its customers and deliver products when their customers want them.

Key Findings

The supply chain solutions helped the client to respond in real-time as styles and customer preferences keep on evolving. They were able to make necessary adjustments to manufacturing and supply chain operations.  The improvements made to production rates, vehicles, and delivery routes and schedules enhanced the agility of their supply chain and increased its efficiency to meet short-term demand forecasts.

Want to build an agile supply chain?

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What are the Main Objectives of Supply Chain Solutions?

With the expansion of global markets and networks, it has become increasingly important for companies to leverage innovative supply chain solutions. By availing supply chain services, companies can considerably boost customer service, reduce operating costs, and enhance the financial stability of the company.

However, managing inventory, transportation, and logistics is a complex process for companies. In such a scenario, availing the services of best-in-class supply chain consulting firms is highly recommended for companies. Supply chain consulting firms allow for fast replenishment of inventory to meet customers’ demands. There are many more objectives of supply chain solutions that companies should aim to achieve:

  • Product or material replenishment
  • Faster speed to market
  • Optimization of pre and post production inventory levels
  • To enhance the efficiency of the distribution side

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