Category: Casestudy

category management

Developing a Consumer-Oriented Category Management Strategy and Achieving Over $80 Million for a Food Manufacturer

Food Industry Overview

The introduction of big retailers in the food industry is expected to increase pressure on business models. Growth of new online and home delivery shopping models will inflict collateral damage on the smaller and regional manufacturers. With reducing profit margins, food companies will now have to identify ways to reduce costs while maintaining competitive differentiation. For this, they must focus on popular product categories that can drive sales and ensure the efficiency of their processes.  

Business Challenges Faced

The client, a leading food company in North America supplied several food categories, including frozen snacks, dinners and generated an annual revenue of over $10 billion in the last financial year. Through an effective category management strategy, they wanted to uncover additional opportunities and develop product supply strategies and tactics to cut costs effectively. However, developing an effective category management strategy required a data-driven, fact-based, analysis-intensive process. The client, therefore, decided to leverage SpendEdge’s expertise to gain a broader perspective of the complete process and break from current paradigms.

Want to know how an effective category management strategy can help you to redesign product supply strategies and minimize costs? Request a proposal and access our category management procurement solution portfolio for free.

Our Research Approach

The experts at SpendEdge worked through the eight-step category management approach. This helped the client to gain comprehensive insights regarding different aspects such as spend, demand, and competitors impacting the fresh food industry. They also gained detailed insights into customers’ buying habits and improved their decision-making process. In the next step, synergies across departments were created to enhance both consumer value and business results. Much emphasis was laid on implementing activity-based costing to better manage costs with minimal resources.

The category management strategy coupled with activity-based costing facilitated the client to strengthen the relationship between suppliers and distributors and gain better results. The improved category management process streamlined the marketing and product supply strategies and empowered the client to defend category sales while improving the cash flow. Also, the new category management procurement tactics driven by shopper insights enhanced shopper marketing experience. Additionally, a better understanding of customers’ needs and category-specific insights empowered the client to tackle competitive pressure effectively.

Wondering how you can on implement an activity-based costing method and enhance customer value?

Reach out to our experts for customized category management report. 

Engagement Outcome

The proprietary activity-based costing and category procurement solution helped the client to develop a consumer-oriented category business plan and achieve over $80 million in revenues. The insights on suppliers’ landscape and their organizational capability further helped the client to fasten the time between the initiation and completion of the process.

Developing a category management strategy is crucial for companies in the food category to develop a consumer-oriented category business plan. Subscribe now to enjoy free access to our web-based platform.

Benefits of Devising a Category Management Strategy

  • Helps companies to work with suppliers in an efficient manner.
  • Delivers value-based services to address customers’ needs.
  • Provides accurate spend insights on the existing as well as upcoming contracts.
  • Facilitates coordination at the highest level and improves relationships between suppliers.

To know more about the benefits of developing a category management strategy, request for more information from our analysts.

tire industry

Helping a Canadian Tire Manufacturer to Reduce Production and Distribution Costs by 40%

Canadian Tire Industry Overview

Despite exhibiting growth over five years, volatile input prices coupled with pressure from imports have placed significant downward pressure on the performance of the tire industry in Canada. The need to improve fuel efficiency and safety has increased demand for more advanced tire technology. Also, demand for tires is expected to stagnate as new vehicle production slows and companies must find ways to manage raw material costs. 

Business Challenges Faced

The client, a leading company in the Canadian tire industry, was facing numerous challenges on different fronts such as production, sales, and market competition. This included decreasing per year sales, increasing part worn sales, expanding factory warehouse direct volumes, growing raw materials costs and higher distribution costs. Therefore, they decided to collaborate with SpendEdge to achieve financial and environmental savings without compromising on service. Also, they wanted detailed insights into customer data and vehicle data to improve their process efficiency.

Inability to perform tire industry analysis and achieve financial savings can impact the process efficiency for tire manufacturers. Request a free proposal and our experts will get back to you asap.  

Our Research Approach

Leveraging their scales and depth of experience, the experts at SpendEdge carried out a comprehensive tire industry analysis and offered a spend analysis and price forecasting solution. This helped the client to develop a short and medium-term spend strategy and identify the possibility of improving savings. They identified the commodities such as rubber content and steel cord that were the key drivers for the company. Instead of analyzing the pricing landscape in Canada, the experts analyzed price trends and fluctuations at the global level and determined the potential impact on costs of raw material sourcing.

Furthermore, to address the increased use of part worn sales, they identified markets where the legislation laws were strict regarding the same. They focused more on labeling the tires correctly and promoting them based on their quality. While working, our experts also realized that the client wasn’t data-savvy enough and lacked accurate customer data, sell-in data, sell-out data, and vehicle data. Therefore, they communicated with CPOs and developed business case and procurement roadmap to improve process efficiency and realize cost savings from purchases.

Want to know how our customized tire industry analysis helped the client to identify savings opportunities?

Get in touch with our experts now! 

Engagement Outcome

SpendEdge’s customized tire industry report helped the client to source rubber and steel cord at best prices and reduce the production and distribution costs by 40%. This helped the client to focus more on the labeling of products. The procurement roadmap developed helped the client to better comprehend price fluctuations and demand. Our experts also helped the client to develop a robust pricing structure while maintaining quality service levels.

Developing a robust pricing strategy requires companies to comprehend price fluctuations. Request a free demo to access our web-based procurement platform and gain detailed pricing insights.  

Tire Industry Trends to Watch Out for in 2019 and Beyond

Electric vehicles: The increasing use of electric vehicles and Germany’s initiative to ban internal combustion engines by 2030 is expected to drive the popularity of electric vehicles. Companies in the tire industry will now have to focus on higher torque and increased load demands due to heavier batteries.

Autonomous vehicles: The introduction of level 4 and 5 autonomous vehicles will alter the driving patters and will require different tire assessments. Tire manufacturers will have to improve durability, rolling resistance, and handling requirements of products. 

Performing automotive and tire industry analysis is vital for companies to identify the latest trends in the market. Request for more information to obtain tire industry statistics and market insights.

mining equipment

Identifying Profitable Projects for a Company in the Mining Equipment Industry with the Help of Category Market Intelligence Solution

Mining Equipment Industry Outlook

The continuous demand on the global mineral and metal markets provides mining equipment manufacturers in Sweden a competitive edge. The advent of automation technologies in the category has led to the augmented use of smart and connected solutions. This, in turn, has provided significant opportunities for mining equipment manufacturers for the retrofitting of existing products. However, companies need to assess market drivers and factors impacting the equipment sales to sustain in the market.  

Business Challenges Faced

The client, one of the leading mining equipment manufacturers in Sweden was facing predicaments due to stagnant growth rates. The limited availability of large-scale projects and the abundance of low-cost inferior equipment into the market was adversely affecting their mining equipment sales. Moreover, the decline in world commodity prices and demand due to cooling-off the Chinese economy was creating difficulties for the company. The client, therefore, decided to leverage SpendEdge’s category market intelligence solution to better understand the market dynamics. They also wanted to obtain real-time insights to profile the right suppliers for their business.  

Want to know how assessing market dynamics can help companies in the mining equipment industry to analyze market trends and determine the market demand? Request a free proposal and our team will get back to you asap.

Our Research Approach

With the aid of SpendEdge, the client performed a comprehensive SWOT and PESTLE analysis to better understand the internal and external factors impacting the mining equipment industry. This helped the client to assess market dynamics, trends, suppliers pricing, and gain detailed insights regarding the mining equipment market size. Also, the experts conducted a technology landscape assessment and analyzed competitors’ category strategies to improve category forecasting and develop successful category plans.

The comprehensive mining equipment industry report offered also helped the client to identify key suppliers operating in the industry space. They gained a detailed understanding of the various components and procured the right products and services at the right price levels.

Wondering how you can gain detailed insights regarding the mining equipment industry?

Reach out to our experts for customized category market intelligence solution. 

Engagement Outcome

SpendEdge’s solution helped the client to understand price fluctuations, identify profitable projects, increase mining equipment sales, and improve supplier efficiency. This approach reduced the operational costs for the client and increased their profit margins by 35%. The supply market insights further helped the client to evaluate and determine appropriate supply markets to conduct in-depth analysis and profile potential suppliers.

Understanding pricing trends is crucial for companies to identify profitable projects and improve mining equipment market share. Subscribe now to enjoy free access to SpendEdge’s pricing insights regarding the industry.  

Best Practices for Companies in the Mining Equipment Industry

  • Make improvements to machinery to achieve productivity gains.
  • Increase cross-industry collaboration to improve equipment sales.
  • Adopt lean techniques and process automation without jeopardizing the quality of equipment.
  • Improve the production efficiency and reduce consumption of resources per unit of production to ensure sustainability.

To gain more insights regarding the industry, request for more information from our analysts.

market intelligence

Analyzing Global Supply Markets with the Aid of Supply Market Intelligence Solution

SpendEdge, a leading provider of supply market intelligence solutions, has announced the completion of their latest presentation on analyzing global supply markets with the aid of supply market intelligence solution. The article offers detailed insights into the benefits of supply market intelligence solution reaped by our clients. The article also highlights how supply market intelligence services can help companies to closely monitor supply market conditions and improve supply chain strategies. 

Developing Effective Supply Chain Strategies to Strengthen their Presence in North America

Intensifying global competition presents a plethora of challenges for companies operating in the chemicals industry. A leading company in North America was finding it difficult to address high-cost pressure and identify opportunities for organic growth. They wanted to improve their supply market intelligence process to address market complexities.

The solution offered by our experts helped the client to perform supply market intelligence analysis and gain real-time information on suppliers’ activities while improving supply chain efficiency. Also, it helped them develop superior supply chain strategies, reassess their footprint in Asia, and strengthen their presence in North America.  Products without significant incremental sales were further identified to reduce non-profitable complexity and improve value-added processes.

Analyzing the Global Supply Market for a Pharmaceutical Drugs Company

Understanding supply market forces and implementing a comparative analysis of the pharmaceutical drugs market has always been an arduous task for companies. One of our clients, a market leader in the pharmaceutical drugs segment wanted to leverage our supply market intelligence services to develop an effective supply chain management system.

Our supply market intelligence experts developed a commodity profile to better understand the market landscape. They determined cost structures of suppliers and identified key market indicators to identify the supply market trends. The solution offered helped the client to obtain detailed insights regarding the global supply market and develop an effective supply chain management system.

Tackling Price Fluctuations and Realizing $30 Million in Savings

New technologies are expected to disrupt the automotive industry in the coming years. To address disruptions and identify potential opportunities, a leading company in the U.S automotive aftermarket industry collaborated with SpendEdge to leverage our expertise in offering supply market intelligence solutions. They wanted to develop an effective supply market intelligence strategy to minimize category spend and rebalance their global supply base.

During the course of this engagement, our experts extracted information from their internal databases and rationalized the supply base. They analyzed RFP responses from potential suppliers and conducted multiple rounds of negotiations to determine key suppliers. This helped the client to identify capable suppliers, address price fluctuations and supply market challenges, and realize $30 million in savings.

About SpendEdge

SpendEdge delivers robust, real-time supply market intelligence solutions to help sourcing and procurement professionals analyze supply markets. Our innovative supply market intelligence help enterprises to transform the structural capabilities of businesses and improve execution efficiency. Our state-of-the-art supply market intelligence solutions also help enterprises to transform structural capabilities, improve execution efficiency, and achieve better cost savings. We provide businesses with actionable insights and techniques to improve their supply market intelligence capabilities.

Recent Posts

SWOT analysis

Improving Budget Planning for a Healthcare Company by Successfully Performing a SWOT Analysis

European Healthcare Industry Overview

Across Europe, companies in the healthcare industry are barely managing to cover their costs. Not only are the methods for raising funds to cover costs inadequate, but the costs themselves are set to rise. The major concern of Europe’s healthcare industry is to find ways to balance the budget and restrain spending. However, budget planning requires companies to efficiently address different internal and external aspects.

Business Challenges Faced

The client, a leading healthcare company in Europe, was in the final stages of their budget planning. The budget was about to be rolled out with the launch of the new financial year. But the client wanted a third party planning and budget analysis to identify key internal and external issues and refresh strategies of their budget. They wanted to assess market dynamics, drivers and niches apart from gaining a comprehensive overview of the latest trends and opportunities. This required them to systematically explore areas for business development, resource development (physical and intellectual resources) and vulnerability needing improvement. Due to the complexity of the process, the client decided to collaborate with SpendEdge to leverage our expertise in developing healthcare SWOT analysis template.

Developing a healthcare SWOT analysis template is crucial for companies to analyze different external and internal factors and plan their budget effectively. Request a free proposal to access our category market intelligence solutions for FREE now!

Our Research Approach

To help the client develop a healthcare SWOT analysis template, the experts at SpendEdge adopted a four-step approach. First, they collected and assessed important healthcare data ranging from disease registries to funding sources. This helped in identification of the organization’s capabilities. In the next step, they organized the collected data into four SWOT categories-strengths, weaknesses, opportunities and threats to identify areas that need improvement when compared to competitor healthcare organizations. Finally, a SWOT report was delivered to assess the market position and tailor SWOTs to specific departments. A SWOT analysis format was developed to create simple SWOT statements that can help the client in planning the budget.

With aid of a healthcare SWOT analysis solution, the client assessed the growth potential of key competitors in the region and gained a comprehensive understanding of the competitive landscape. This helped them better plan their budget, develop effective strategies, and enter niche segments. Also, this helped them to focus on products and services offerings that were crucial to gain measurable results.

Wondering how you can develop an effective healthcare SWOT analysis template and enter niche segments?

Reach out to our experts for customized SWOT analysis solutions. 

Engagement Outcome

The healthcare SWOT analysis helped the client to revise their budget plan and address the rising healthcare costs. They realized that the levels of availability of funding couldn’t meet the rising healthcare spend and developed a healthcare model that could meet costly technological advances as well as legacy priorities.

Developing a robust healthcare model requires companies to perform a healthcare SWOT analysis. Subscribe now to enjoy free access to our web-based platform for better insights.

Steps to Develop Healthcare SWOT Analysis Template

  • Compile and assess the key data.
  • Analyze strengths, weaknesses, opportunities, and threats (SWOT).
  • Develop a SWOT analysis format or matrix for each business option. 
  • Make a SWOT report and incorporate the analysis into the decision-making process.

To know more about SWOT analysis in healthcare, request for more information from our analysts.

airline industry

Increasing the Total Cost Savings for Airport Handling Spend by 13% for a Company in the Airline Industry

Airline Industry Overview

Recent US airline industry analysis shows that the industry has expanded significantly over the past five years. Rising levels of per capita disposable income and total corporate profits have bolstered demand from both business and leisure travelers. However, there are certain challenges facing companies in the airline industry. Over 50% of an airline’s cost base goes to suppliers. Also, many contracts are long term and have hidden penalty fees, depreciating the financial performance of companies.  

Business Challenges Faced

The client is one of the fastest-growing companies in the US airline industry. They emphasize on providing luxurious and innovative services to their clients. However, providing such services required the client to source onboard products and identify major spend categories. After tough years of marginal profitability, colossal cost, and competition challenges, the client realized that they must engage with a global procurement intelligence advisory firm to identify critical spend areas with a high degree of risk and business impact. The client, therefore, collaborated with SpendEdge to be innovative in negotiating contracts to improve financial performance.

A comprehensive domestic and global airline industry analysis is imperative for companies to address colossal cost challenges. Request a free proposal to access our solution portfolio for free now!

Our Research Approach

With SpendEdge’s help, the client performed a detailed airline industry analysis to obtain granular insights into buying activities and other spending trends. This helped them to consolidate three categories – airport lounge, ground and cargo handling – at a station where the number of cargo handling suppliers were twice, and the competition was comparatively less. Also, the insights gained through analysis helped the client to identify cargo warehouse providers who were earning substantial storage revenue from airline cargo customers. The team negotiated better contracts with them and increased the total cost savings for airport handling spend.

Furthermore, to handle critical spend areas with a higher degree of risk, the experts analyzed high-profile elements that were critical to the performance of the airline and had an impact on cost and brand reputation. This empowered the client to transform the traditional cost contract into a revenue-generating deal and deliver savings of around $3 million to the benefit of all stakeholders. 

Want to know how our airline industry analysis helped the client to identify and consolidate major spend categories?

Reach out to our experts for detailed airline industry overview. 

Engagement Outcome

SpendEdge’s customized airline industry analysis helped the client to increase the total cost savings for airport handling spend by 13% and meet the cost reduction objectives.  Also, the airline procurement solution offered enhanced the operating model for procurement, improved the client’s strategic ability to increase revenue for the company, and better manage their cost base.

Efficiently managing the cost base and improving the airline industry value chain requires airline industry analysis. Subscribe now to enjoy free access to SpendEdge’s insights regarding the airline industry.

Products and Services Comprising the US Airline Industry

28Conducting a detailed airline analysis is vital for companies to identify the accurate share of products and services. Request for more information to gain industry specific insights.

spend analysis

Identifying $30 Million in Savings Opportunities for a Financial Services Company with the Help of Spend Analysis Services

Financial Services Industry Overview     

Despite all the news about profits, banks and other financial services companies are failing to meet shareholder’s expectations for investment on return on equity. Part of the reason for this is the ineffective spend analysis process. Organizations with the effective spend analysis process reap benefits in the areas of cost-effectiveness and process efficiency; whereas, others struggle to identify cost-saving opportunities. This case study is a classic example of how we helped a financial services company to improve the spend analysis process and focus on savings.  

Business Challenges Faced

The client is a leading multinational financial services company with operations spread across the globe. Their central procurement team wanted to have a better view of spend and an assessment of savings potential in order to prioritize work and focus on savings. However, limited visibility into detailed spend information, different data sets, and business unit delineations were making it difficult for the central procurement team to perform a comprehensive spend analysis. The team, therefore, engaged with SpendEdge to improve their spend analysis process and gain a rough estimation of cost savings including internal benchmarks between their offices.

Want to know how an effective spend analysis process can help you estimate cost savings? Request a proposal to access our custom-made solution portfolio for free now!  

Our Research Approach

The experts at SpendEdge performed a comprehensive spend analysis to develop initial estimates of cost savings. They also identified different sources, including accounts payable, general ledger, and pCard for spend data, and consolidated the data into one central database. This helped the client to standardize the spend and link stakeholders for better supplier management. The team then analyzed spend data and ensured that the client negotiated the best contract deals per supplier.

The solution offered further improved spend analysis process and helped the client to evaluate contracts for savings opportunities, identify the optimal number of suppliers for a specific service, and implement spend governance with the holistic view.

Wondering how an improved the spend analysis process can help you evaluate contracts for savings opportunities?

Reach out to our experts for an immediate response. 

Engagement Outcome

The robust spend analysis process helped the client to focus on a few data sets that were falling within the scope of procurement. This helped the client to develop a roadmap for future procurement initiatives and identify potential actions in terms of procurement projects. The new projects taken helped the client realize the savings of $30 million.  

Implementing a spend analysis procurement strategy is crucial for companies to realize savings. Subscribe now to access SpendEdge’s web-based procurement platform to identify cost savings opportunities.   

Benefits of the Spend Analysis Process

  • Provides a clear understanding of where the organization is spending money.
  • Helps companies to identify opportunities for savings/cost reduction.
  • Improves the ability to forecast future spending and expenditure budgets.
  • Helps understand spend with diversity vendors and uncover opportunities to engage more with diverse vendors.

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freight transportation

Improving the Transport Efficiency and Fill Rate for a Freight Transportation Company

Freight Transportation Industry Overview

Investments in the infrastructure have made Sweden as one of the top logistics markets in Europe. The central location of the country in the region makes it preferred choice for most companies that look to consolidate distribution and warehousing activities in Northern Europe to one central location. However, the fragmented nature of the freight transportation industry makes it difficult for logistics managers to meet customer expectations and ensure on-time delivery. This case study is a classic example of how we helped a company to improve their transport efficiency and increase the fill rate.

Business Challenges Faced

The client, one of the largest freight transportation companies in Sweden was facing predicaments due to fragmentation in transport flows. This growing fragmentation and focus on customization was impacting the efficiency of their transport network. Also, the decrease in fill rate and end-customer demands was creating pressure on the client to improve their transport efficiency and redesign their business model while maintaining profitability. However, the client lacked the necessary insights involved in the transport network.  The client, therefore, collaborated with SpendEdge to optimize routes, change contractor agreements, improve business relationships and increase the power of transactions in the supply chain.  

Want to know how redesigning the business model can help companies in the freight transportation industry to improve transport efficiency? Request a free proposal and our team will get back to you asap.

Our Research Approach

To help the client develop an effective business plan, the experts at SpendEdge performed a detailed freight transportation industry analysis. They identified intermediary companies (transaction level) who couldn’t fulfill their contractual obligations. This helped the client to change the interface between stakeholders and become more transparent to meet with digital information in all stages of the supply chain. Also, our recommendation to include transport planning and the procurement process in the digital information flow improved route optimization and resulted in significant savings in driving time.  

The comprehensive freight transportation industry report also helped the client to improve contract visibility and support procurement managers right from the agreement in principle to contract execution. This helped the client to associate with better intermediary companies and get the best possible terms during every transaction. Moreover, the improvised business model empowered the client to identify strategic contractors involved in the process.

Wondering how including transport planning and the procurement process in the digital information flow can reduce driving time for companies in the freight transportation industry?

Reach out to our experts for industry-specific insights. 

Engagement Outcome

SpendEdge’s customized freight transportation industry report helped the client to improve supply chain visibility. Also, the insights offered improved the transport planning and optimized the route, reducing the driving time by 33%.  The solution offered further improved the transport efficiency of the client by 40% and increased the fill rate significantly.  

Improving the transport efficiency is vital for freight transportation companies to increase the fill rate Subscribe now to enjoy free access to SpendEdge’s insights regarding the freight transportation industry.

Best Practices for Companies in the Freight Transportation Industry

  • Have a clear understanding of licensed intermediaries who work to link up shippers with qualified carriers when they have products to move.
  • Check the legitimacy of intermediaries in order to operate the business legally.
  • Associate with suppliers who have some degree of experience in the business and formal education in the industry.

To gain detailed insights regarding the freight transportation industry or freight transportation services, request for more information from our analysts.

financial risk assessment

Bringing Down Debt Securities to 20% for a Fintech Company in the US by Performing Financial Risk Assessment

FinTech Sector Overview

With the US economy on an upswing and stock market trending near record highs, most companies in the financial services tend to assume that supplier financial strength is a trivial issue. However, the junk debt, including leveraged loans reached to record highs in 2018. The situation is expected to aggravate as the business cycle ages and eventually starts to contract. This case study is a classic example of how we helped a fintech company to identify and address financial risks that were increasing their debt securities by performing financial risk assessment.

Business Challenges Faced

The client, one of the fastest-growing fintech company in the US started showing deterioration in credit quality due to large issuances of debt and financial leveraging. By the last quarter of 2018, the total balance of non-financial corporate debt securities increased by 35% and the figure was expected to aggravate further as the business cycle ages. This compelled the client to identify different economic risks and address underlying debt situation. However, monitoring commercial counterparties, and specifically tracking critical suppliers to help ensure a resilient supply chain was not an easy job. The client, therefore, decided to leverage SpendEdge’s expertise in performing comprehensive financial risk assessment and mitigating them with the right strategies.

Want to know how comprehensive financial risk assessment can help you identify risks and reduce the possibility of insolvency? Request a free proposal to develop a financial risk assessment model and we will get back to you within two working days.

Our Research Approach

To help the client efficiently identify potential threats to financial stability, the experts at SpendEdge carried out a detailed financial risk assessment. This helped the client to identify and categorize risks into micro- and macro-financial risks. The team then analyzed macro-financial risks such as maturity and liquidity mismatch, poor process control, and increased reliance on suppliers to facilitate better financial dealings. They also evaluated macro financial risks such as contagion and pro-cyclicality to help the client reduce excess provisioning of credit by banks during economic upswings.

With this timely identification of risks, the client developed an effective financial risk assessment template. This helped the client to calculate a financial risk score for existing suppliers and optimize exposure. Also, this helped the client to adjust contract terms, source alternative suppliers and take the process in house.

Wondering how financial risk assessment can help you calculate a financial risk score for existing suppliers and optimize exposure?

Reach out to our experts for conducting supplier financial risk assessment. 

Engagement Outcome

The improved financial risk assessment process helped the client to bring down debt securities to 20% from 35% in three months. As a result, reducing the risk of insolvency. Also, the solution offered helped the client to identify and shortlist suppliers with low financial risk, regularly monitor the existing suppliers and foresee any potential risks and develop effective financial risk assessment models.

Conducting financial risk assessment is crucial for fintech companies to identify potential risks and reduce debt securities if any. Subscribe now to access SpendEdge’s web-based procurement platform for FREE to gain industry-specific insights.

Key Factors to Consider While Performing Financial Risk Assessment

Financial Risk Assessment (1)To know how you can successfully perform a financial risk assessment and shortlist potential suppliers based on their financial strength, request for more information from our analysts.

price analysis

SpendEdge’s Cost Price Analysis Solution Helped a US Medical Products Company to Grow International Business by 170%

US Medical Industry Overview

US medical products companies are highly regarded for their innovations and high technology products. However, the quest to improve the performance of their current products has forced them to scout for new technologies. Companies of today look to partner with Contract Manufacturing Organizations (CMOs) for the current line of products. Most firms constantly look for suppliers who can leverage existing methodologies of manufacturing. However, all this requires companies to set prices on an international scale while considering factors such as strict government regulations, new clinical trials & data, long-term contracts, complex RFP/tender processes, and large purchasing groups. 

Business Challenges Faced

The client, one of the fastest-growing division of Fortune 500 medical products company, was facing a global pricing challenge. Their price negotiations with suppliers varied across different offices in 33 countries due to a lack of accurate pricing data and processes. This was making it difficult for them to make informed price, volume trade-off decisions, and develop an effective pricing strategy on a global scale. The client, therefore, decided to leverage SpendEdge’s expertise in performing cost price analysis and providing detailed supplier insights.

Want to know how performing cost price analysis can help you make informed price and volume trade-off decisions? Request a free proposal and we will get back to you within two working days.

Our Research Approach

To cater to the specific category requirements of the client, the cost price analysis experts at SpendEdge conducted a thorough analysis of the transactional data from the past year for the same products and services. They determined the viability of the current quotations and buying behavior per segment and country. They also asked five key suppliers of their prices for the same product to analyze price trends for the same commodities. This helped the client to define optimal price points in different countries.

After determining the profitable price points, the experts helped the client to develop an effective pricing strategy. The strategy was a scalable solution that better facilitated the annual price-setting process. Based on geographic differences and complexities, the client developed a cost price analysis template. The template helped the client to play-out different price volume trade-offs for different regions and evaluate if margin goals were met.

Wondering how cost price analysis in procurement can help you define optimal price points?

Reach out to our experts for an immediate response. 

Engagement Outcome

The comprehensive cost price analysis helped the client to aggressively grow the international business by 170% by the end of the forecasting period. The client stopped undercutting its margins and documented pricing guidelines to navigate factors impacting the prices. The improved cost price analysis capabilities further helped the client to better position themselves against competitors while negotiating with suppliers.

Conducting cost price analysis is crucial for companies to better negotiate with suppliers. Subscribe now to access accurate cost and pricing analysis insights from our procurement experts. 

Best Cost Price Analysis Techniques

Price analysis

 

  • Ask more than three suppliers to bid for the same product to determine if a particular price is reasonable or not. This will help you to analyze the total cost of acquisition and achieve maximum cost savings.
  • Create a list of similar items and services that are available to customers while comparing list prices. Also, consider standard industry discounts for the items or services while performing cost price analysis.
  • Sometimes, the prices of certain commodities are set by a law. When this occurs, there is usually a pricing structure for reference. Refer to the set guidelines while procuring such items.

To know how you can successfully perform cost price analysis, request for more information from our analysts.

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