Category: Casestudy

Non Alcoholic Beverages

Reducing Expenditure and Identifying Category Specific Opportunities for a Non Alcoholic Beverages Company

Non Alcoholic Beverages Industry Overview

U.S. consumers have a great thirst for trying new and exciting non alcoholic beverages. Nearly, 10% sales in the non alcoholic beverages industry come from new products.  As a result, companies consistently need to bring new offerings to the marketplace and perform category level spend analysis to ensure profitability in different categories. 

Business Challenges Faced

The client is a well-known company in the non alcoholic beverages industry with 30,000+ employees.  With the rise in new product launches, brand extensions, and new flavour offerings, the client felt the need to lean on innovative practices to sustain their market share and increase profitability. However, this required the client to track savings from existing categories and identify latent saving opportunities. The client, therefore, approached SpendEdge to leverage its expertise in offering category level spend analysis solution. 

Key objectives the client aimed to achieve through the category level spend analysis are:

  • Identify saving opportunities in beverage staple categories such as water milk, and tea.
  • Devise a spend strategy that could analyze their spend and find scope for improvement.
  • Develop partnerships with suppliers in the non alcoholic beverages industry to implement best contracting practices.

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Automotive industry

Minimizing Risks and Reducing End-to-end Supply Chain Costs for an Automotive Company

Automotive Industry Analysis

The automotive industry plays an important role in maintaining the economic health of European countries. The turnover generated by the industry accounts for almost 7% of the EU’s GDP. However, despite the market witnessing promising growth, companies in the automotive industry need to redesign their supply chain strategies to prepare themselves for any unforeseen risks and transformations.  

Business Challenges Faced

The client – a leading original equipment manufacturer (OEM) in the automotive industry – wanted to identify potential opportunities and risks in the supply chain amid wrenching changes in global economies. They wanted to gain in-depth insights into the supply trends impacting operations in the European market. The client, therefore, approached SpendEdge to leverage its expertise in offering supply side risk assessment solutions to better understand the current structure of the supply chain and devise effective supply chain strategies. 

Key objectives the client aimed to achieve through this supply side risk assessment were:  

  • Mitigate chances of supply failure occurring due to supplier or logistics delays.
  • Reduce the possibilities of outturn costs being higher than the anticipated costs.
  • Minimize risks associated with quality failure, product failure, and latent defects impacting auto sales growth.

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spend benchmarking analysis

Benefits of Spend Analysis: Enabling Companies to Achieve Savings, Optimize Capital, and Reduce Procurement Spend

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the launch of their latest newsletter on the benefits of spend analysis solutions for businesses today. Spend analysis can help companies achieve cost effectiveness and boost process efficiency. It can also help reduce maverick purchasing and helps businesses identify opportunities that are specific to their category.

Achieving Savings of $35M for a Microelectronics Firm

Developing a spend analysis plan to analyze expenditures and increase R&D investments is imperative if you are planning to make investments in mechatronics technologies. A Germany-based microelectronics company was finding it difficult to analyze spend and devise an effective spend strategy to achieve significant cost savings. They also wanted to run an RFP for new suppliers to identify suppliers who would be able to keep up with regulations in the electronics and microtechnology industry.

SpendEdge’s spend analysis solution helped the client to perform a proper supplier spend analysis and categorize their direct and indirect spend. The solution offered helped the client to negotiate the best deals with advanced technology providers. As a result, the client achieved $35 million in annual cost savings

Transforming Finance Operations Through Spend Analysis

Keeping tabs on changing supply chain priorities and managing spend is an arduous task for most companies. Don’t you agree? Read our success story on how we helped a leading medical devices company address concerns about maverick spend.

During the course of this engagement, our spend analysis team offered information on how the client could improve their spend management capabilities and improve ROIs. They helped the client to effectively price their products according to the industry standards and build their presence in the industry.

Increasing Transparency and Commercializing Revenue Models

Wondering how you can reduce unaccounted spend and increase spend visibility? Our spend analysis report recently helped one of the leading automotive companies to compare their spend with that of industry peers and gain granular insights into recent spending trends. The report offered information on how to boost spend visibility and identify potential sourcing opportunities in the automotive industry so that the client could improve organizational efficiency and drive better savings.

With our help, the client was able to implement an efficient spend management process and commercialize their businesses and revenue models to better connect with customers.

Optimizing Capital and Maximizing Process Efficiency by Over 60%

Developing a coordinated post-merger spend management strategy to standardize spend data is crucial while merging with a multi-national Fortune 500 company. Take a quick look at our recent case study to understand how we helped a leading facility management services provider in the US to analyze spend across different categories and enhance their process efficiency.

Increasing cost reduction pressures were compelling the client to analyze their spend data, adapt to a fast-evolving marketplace, and identify potential areas for cost reduction. Our experts adopted a comprehensive four-step approach to optimize their working capital and maximized their process efficiency by over 60%.

cpg industry

A Leading CPG Company Mitigates Risks and Improves Cash Flow Margins with SpendEdge’s Supplier Risk Analysis

CPG Industry Overview

Profitability is the key aim of all companies in the CPG industry.  But with fast-changing consumer preferences and shifting channel landscape, CPG companies have been forced to cut their costs and improve their supplier risk assessment process to address unprecedented risks. Businesses in the CPG industry need to devise a way to obtain a larger return on their investments and improve profitability.

Business Challenges Faced

The client is one of the leading companies in the CPG industry, based out the United States, and has operations spread across the globe. However, factors such as increasing trade wars and tariffs in the US, rising raw material costs, stalled demand, and declining profit margins were increasing supplier risks. The inability to manage such supplier risks was resulting in significant monetary losses, damaging the company’s reputation, and resulting in regulatory penalties, production delays, and product recalls.

The client, therefore, approached SpendEdge to leverage their expertise in conducting supplier risk analysis and profitability assessment. With SpendEdge’s supplier risk analysis solutions, they wanted to identify typical risks associated with key suppliers in the CPG industry, their impact on the supply chain, and analyze the overall efficiency of the firm in generating returns for its shareholders.

The key financial objectives client aimed to achieve through the supplier risk analysis engagement were:

  • Compute gross profit margins and operating profit margins to determine functional areas that were impacting the firm’s profitability.
  • Propose measures to increase value obtained from existing suppliers and improve the cash flow margin.

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Spend analysis

Spend Analysis Solution Helped a Microelectronics Manufacturer to Improve Spend Visibility and Achieve Annual Savings of $35 Million

Most organizations aim at increasing profitability and optimizing cost. In fact, a cost-effective procurement process can help them achieve significant savings. However, organizations need to analyze their spend before cutting unnecessary costs and turn to spend analysis to achieve long-term savings.

Challenges Faced

The client is multi-billion microelectronics manufacturer headquartered in Germany. Owing to the ongoing digitalization of industrial production and increasing use of microelectronics in Industry 4.0, the client decided to develop a spend analysis plan. The plan aimed to assess the organization’s expenditures, increase R&D investments, and run an RFP for new suppliers to address the demands of the electronics and microtechnology (E&M) sector. However, the client’s spend data was not up-to-date and they were engaged with strategic activities such as developing mechatronics technologies to make Industry 4.0 a reality.  Naturally, the client needed to engage with a company that could help them analyze spend data, identify risks associated with current and new suppliers, ensure regulatory compliance and manage complex contracts.  By realizing their need to leverage procurement spend analysis services, the client chose to partner with SpendEdge to address their spend related woes.

Wondering how you can analyze the current state of spend and achieve savings through spend analysis? Request a free proposal and access our portfolio of spend analysis solutions for free. 

Our Approach

The experts realized that the client wanted to transform data into actionable information and devise an effective spend strategy. Therefore, they obtained data from different sources and consolidated it into a central database.  They cleansed the data, involved suppliers, and grouped purchases made from same suppliers to conduct a proper supplier spend analysis. This helped them to categorize their direct and indirect spend and determine where the money was being spent. The improved spend analysis process helped the client to negotiate the best contract deals per supplier.

SpendEdge’s experts developed a detailed commodity structure, which was tailored to the client’s requirement, for both direct and indirect spend categories and then mapped the spend to the correct category based on vendor names and product descriptions. The spend analysis solution delivered enabled the client to gain detailed insights into the spend category and devise strategies to improve savings in those categories.

Conducting spend analysis requires companies to collect and analyze a huge amount of data?

Request a free demo from our experts and gain detailed insights to improve the process.

Results

The spend analysis solution offered helped the client to:

  • Devise spend analysis template and understand the current state of spend.
  • Identify suppliers who can provide top-class technological performance.
  • Adopt the best contracting practices and negotiate the best deals with advanced technology providers.
  • Gain detailed insights to determine the amount spent on research and development annually.
  • Achieve an annual cost savings of $35 million in annual cost savings for the overall spend.
  • To gain detailed insights into the spend analysis solution offered, request for more information.

Benefits of Spend Analysis Solution

Improve spend visibility: Leveraging spend analysis solution allows companies to gain valuable information and greater visibility on money spent on different functions. It helps analyze expenses for purchasing materials/services and costs incurred by suppliers and helps companies to formulate an effective spend strategy.

Enhance category level analysis: It helps companies to adopt a category management approach and analyze data spend per category. It further helps organizations to divide the categories into sub-categories and perform a more detailed analysis, providing an overview of overall spending and enabling better cost control.

Improve processes: Companies leveraging spend analysis solution can better utilize spend data to make informed decisions about how processes can be improved within the organization. Also, they can identify opportunities for process improvements and significantly improve ROI. 

Want to improve your spend analysis process and boost your savings? Get in touch with our experts and leverage our solutions!

procurement process

Procurement Market Intelligence: Streamlining Procurement Process and Achieving Savings of $19 Million for a Healthcare Products Manufacturer

Recent changes in the Canadian healthcare sector has set the stage for new opportunities for revenue generation. However, recent changes have created the need for companies to improve their procurement process flow and address problems in healthcare procurement.

The Business Problem

The client is a leading manufacturer of healthcare products in Canada and generates an annual revenue of over $70 million. However, the country’s complicated procurement system, coupled with numerous jurisdictions, each with its own legislative framework, was creating a complex healthcare ecosystem. The client was also sourcing products from multiple suppliers and receiving multiple deliveries and invoices, which was leading to excess spend. This compelled the client to map the procurement process flow and leverage SpendEdge’s procurement market intelligence solution to gain detailed insights into the commodity categories and meet regulatory requirements.

Understanding the procurement process flow is crucial for companies to reduce excess spend. Request a free proposal and access our complete portfolio of procurement market intelligence solutions for free.

Solutions Offered and Client Journey

To help the client correctly map their procurement process flow, the experts at SpendEdge identified gaps within their process and consolidated the requirements of all departments within the organization. They also gained visibility into the spend areas and specialty categories to help the client identify cost-saving opportunities.

Insights obtained from SpendEdge’s solution helped the client to track and manage information on supplies, labor, and other expenses. This helped them to identify related goods that can be purchased from fewer suppliers, leveraging larger spend to negotiate better pricing. Also, evaluating suppliers on the basis of the quality of service, warranty, and customer service helped the client to improve the procurement process flow. The solution delivered enabled the client to benchmark pricing and ensure procurement costs were in line with the average market prices.

Wondering how you can improve the procurement process?

Request a free demo from our experts and know more about the procurement process steps.

Key Findings and Outcome

Achieved significant savings

The improved procurement process flow ensured that the single purchase order and shortlisted vendors could meet the needs of the entire company. This reduced the time taken by the client to process the requests. The solution provided further helped the client to develop a good working relationship with the suppliers and negotiate the best deals. This minimized the time spent on low-value items and helped the client to achieve savings of over $19 million. 

Maintained regulatory compliance

The experts at SpendEdge realized that the government policies and regulations seek to strengthen healthcare security and safety at a macro level. Therefore, they identified laws and regulations that must be followed by the client to sustain themselves in the healthcare market. They focused on compliance, ethics, and risks to drive awareness throughout the enterprise and improved compliance. For detailed insights into the solution offered, request for more information.

What are the Best Practices in Procurement Process?

Since the efficiency of the procurement process can decide the success for businesses, it becomes imperative for companies to follow procurement process steps and map the procurement process flow. Here are a few procurement best practices that companies can follow:

Automate data gathering process: Conducting research on suppliers can be a time-consuming process. By automating this process, companies can ensure the availability of information without spending a lot of time and effort.

Involve in strategic sourcing: The best-in-class organizations obtain feedback and information regarding their objectives and strategies from different functions. This helps them to ensure availability of supplies, reduce the total cost, and streamline the procurement process.

Make continuous improvements: It is advisable for companies to never assume that the procurement process flow is perfect. Make continuous improvements to tap new opportunities and gain greater efficiency.

Want to map the procurement process flow? Get in touch with our experts today!

supply market intelligence

Supply Market Intelligence: Improving Operating Processes for a Chemicals Company

The chemicals industry is expected to face new supply chain challenges and opportunities. It is therefore critical for companies to understand key developments in the chemicals market and know how supply market intelligence can help them seize this opportunity to gain long-term competitive advantage.

The Business Problem

The client is a leading player in the chemicals industry in North America. Owing to the ongoing high-cost pressure caused by intensifying global competition the client felt the need to prepare themselves for the requirements of future markets. Increasing complexities in the chemicals market due to global demand shifts, market consolidation, and uncertainties further necessitated the client to implement an effective supply market intelligence strategy to stay competitive. They wanted to conduct supply market analysis and identify opportunities for organic growth that was slowed down due to the saturation of markets in the western world as value chains were moving to Asia.

The client, therefore, chose to collaborate with SpendEdge to leverage its supply market intelligence services to build a transparent, structured and lean supply chain and gain detailed insights into supply markets.

Analyzing supply market conditions is imperative for businesses to identify growth opportunities. Request a free proposal and leverage our supply market intelligence services.

Solutions Offered and Client Journey

The supply market intelligence services offered helped the client to identify the current state and starting points for improvements in the procurement process. It paved the way for a structured chemicals supply chain that can address the specific needs of the client. Also, this helped the client to redesign their supply chain processes by conducting in-depth analysis and profiling right suppliers.

SpendEdge’s supply market intelligence services enabled the client to identify products without significant incremental sales and reduce non-profitable complexity by focusing resources on value-adding processes. The experts provided access to a wide range of information that helped the client to gain a high-level understanding of markets without spending much time on supply market analysis. This improved the supply market intelligence process and increased the efficiency of the sourcing lifecycle. In addition, supply market intelligence services offered valuable insights regarding developments in the category markets and helped the client to identify best cost sourcing locations and conduct a supplier cost analysis.

Wondering how you can analyze supply markets, category markets, and identify low-cost sourcing opportunities?

Request a free demo from our experts and gain real-time market information.

Key Findings and Outcome

Improved operating process

The supply market intelligence services provided real-time information on suppliers’ activities. This made the client aware of the disruptions that might require immediate actions. Also, this provided necessary insights to find alternate suppliers, devise effective strategies to improve the efficiency of the supply chain and increase reliability across operations.

Provided edge over competitors

Competitive advantage is often gained by companies that are more agile and can proactively devise strategies to address disruptions. Supply market intelligence services helped the client to gain real-time market information, reassess their footprint in Asia to avoid losing market to local players and strengthened their presence in North America.  For detailed insights on supply market intelligence services offered, request for more information.

Benefits of Supply Market Intelligence for Procurement Professionals

Develop superior supply chain strategies

Supply market intelligence services help companies to analyze the impact of potential events on the procurement functions and devise effective procurement strategies. It offers real-time insights into the implications of unique events or disruptions that can occur in the future. It also offers comprehensive insights for procuring the right products and services at the right price levels from suppliers.

Improve customer satisfaction

With the right supply market intelligence services, companies can gain additional information about the customer base and analyze it to defined criteria. They can utilize customer-specific service profiles to offer unique solutions and increase customer satisfaction by anticipating demand patterns.

Analyze suppliers

Supply market intelligence services provide a detailed understanding of various components of supply markets. This helps companies to identify low-cost country suppliers, understand possible supply channels, and obtain geographic distribution of suppliers; thus, enabling them to procure services at the right prices.

Want to conduct a supply market analysis to reduce supply risk? Get in touch with our experts and utilize our supply market intelligence services.

cost benefit analysis

Cost Benefit Analysis: Increasing Revenues by 30% for a Financial Services Organization

Changing regulatory requirements across the globe has compelled financial services organizations to identify their capital requirements and invest in projects that are economically viable.

The Business Problem

The client is a global financial services organization, headquartered in the US, which generates an annual revenue of $18 billion. Owing to the recent changes in regulatory policies, the client wanted to associate with organizations such as SpendEdge to leverage their expertise in devising an effective cost benefit analysis template. They wanted to minimize the undue burden on their customers and evaluate investment policies and new banking regulations to ensure financial stability. In addition, they wanted to drive effectiveness and efficiencies across their risk and compliance programs to meet applicable laws.  Also, they sought to analyze investment opportunities and drive better revenues.

It is imperative for companies to analyze their projects based on actual financial costs. Request a free proposal and access our complete portfolio of cost benefit analysis solutions.

Solutions Offered and Client Journey

The experts at SpendEdge identified the capital requirements of the client in the initial phase of the engagement and devised an effective cost benefit analysis template. They analyzed the minimum ratio of capital to assets that must be maintained to prevent the firm from becoming overleveraged. This enabled the client to minimize the risk of insolvency if asset values decline or the cost of borrowing increases.

In the next phase of the engagement, the experts mapped the time required to realize cost benefits with the ongoing policies and how much will they pan out over a phase. This helped the client to align themselves to the expectations of customers and stakeholders and understand the impact of cost and revenue. In addition, the cost benefit analysis template enabled the client to compute the net present values and ensure feasibility of policies.

Wondering how you can develop an effective cost benefit template?

Request a free demo from our experts and know more about the cost benefit analysis steps involved in the process.

Key Findings and Outcome

Increased revenues

The cost benefit analysis template helped the client to reduce capital misallocation. They engaged resources on projects that would generate positive value for the company.  In addition, limiting the number of trades that can be made over small periods of time counted in favor of the client and helped them increase revenues by over 30%.

Reduces uncertainties

The solution offered reduced uncertainties for the client. It modified the risk level for the client and helped them to develop financial capabilities to the extent that they almost became risk-averse. This protected the client from making investments based on cognitive biases and prevented them from making financial trades that undermined their financial well-being. For detailed insights on cost benefit analysis method and solution offered, request for more information.

Cost Benefit Analysis Steps

SAWhat are the Benefits of Cost Benefit Analysis Template?

Simplifies complex business process

Cost benefit analysis template simplifies complex business processes. It provides detailed insights into the different types of expenses or investments in simple terms and allows businesses to compare different projects or policies no matter how dissimilar they are.

Compares ongoing initiatives

The is another benefit of having cost benefit analysis template. It compares projects or initiatives based on actual financial costs and helps businesses overcome biases and invest in projects that are actually financially viable. 

Estimates net benefit

Although companies cost benefit analysis template can estimate the net benefit of a project, but benefits are comparatively difficult to predict. Estimating costs and benefits can help businesses to calculate the lowest amount of revenue a new project needs to produce to make it profitable.

Want to know how you can conduct cost benefit analysis? Get in touch with our experts and gain detailed insights on the cost benefit analysis steps.

 

Supplier risk analysis

Improving Supplier Segmentation for an Industrial Machinery Manufacturer by Conducting Supplier Risk Analysis

Companies of today are exposed to ever-growing counterparty risks. It is, therefore, recommended to evaluate supplier risk continuously to minimize disruption in the production process. Also, to maintain a competitive advantage, manufacturers must improve their supplier risk analysis process.

The Business Problem

The client is a leading industrial machinery manufacturer in the US who engages with approximately 100,00 suppliers in over 35 countries worldwide. Despite having different audit programs in place for a few suppliers, the US and foreign supplier concerns and distribution disruptions were impacting the growth of the client. Poor supplier segmentation and rising overhead audit costs were further forcing the client to adopt best-in-class supplier risk analysis methods. The client, therefore, approached SpendEdge to leverage their expertise in offering supplier risk analysis solution. By adopting SpendEdge’s supplier risk analysis methods, the industrial machinery manufacturer wanted to overcome shortcomings on the part of suppliers that were exposing them to a variety of risks.  

Segregating suppliers based on the risk they pose is crucial for organizations to mitigate risks. Request a free proposal and access our complete portfolio of supplier risk management solutions.

Solutions Offered and Client Journey

The experts at SpendEdge conducted a comprehensive supplier risk analysis to integrate supplier information across operational systems. They effectively consolidated supplier data across the organization to provide real-time information on suppliers and improve visibility for informed supplier risk management. This facilitated a smooth workflow for the client across different departments and business units, offering clear insights into risk factors, apart from implementing actionable supplier risk analysis techniques.

The experts also utilized due diligence data from different internal and external sources to identify suppliers that were important for the organization but posed the highest level of risk. They assigned risk categories based on supplier segmentation and provided detailed insights regarding suppliers that were likely to disrupt operations impacting the supply chain.  Such risk analysis methods enabled the client to engage with suppliers and develop effective contingency plans while predicting supplier failure. In addition, the suggested risk analysis methods helped the client to plan ahead for potential disruptions from critical suppliers by engaging with suppliers who were already vetted and approved.  

Wondering how you can conduct effective supplier risk analysis?

Request a free demo from our experts and know how we can help you implement effective supplier risks analysis methods.

Key Findings and Outcome

Improved supplier segmentation

The solution offered helped the client to segment their suppliers based on each supplier’s risk profile. This allowed them to plan and prioritize supplier audits more efficiently and reduce the number of audits performed. In addition, the supplier risk management solution helped the client to calculate the risk profile of each supplier based on audit ratings, supplier self-assessments, and other such factors

Enabled supplier rationalization

The supplier risk analysis methods helped the client to gain better visibility into supplier capabilities, maturity, and risks levels. This provided them a comprehensive understanding of where suppliers need to improve their internal processes and scale up operations. For detailed insights on the complete list of solutions delivered, request for more information.

How to Improve the Supplier Risk Analysis Process?

According to SpendEdge, following these six supplier risk analysis methods can help companies to improve their supplier risk management process.

  • Identify active suppliers, analyze the spend, and cleanse the data to develop a comprehensive overview of the supply base.
  • Figure out suppliers posing the highest level of risk who can disrupt ongoing operations.
  • Collect supplier data from different sources and gain a better understanding of risks.
  • Analyze the data to predict risks in the context of business activities and the impact they can drive.
  • Implement risk analysis techniques to address risk more quickly, efficiently and effectively.

Want to about common supplier risk analysis methods that can prove beneficial for your business? Get in touch with our experts now!

Order to Cash

Increasing Productivity for a CPG Company by Transforming the Order to Cash Process

Consumer products companies are facing a plethora of challenges when it comes to the management of the order to cash process. Such challenges include the ability to effectively manage high order volumes and dealing with high levels of deductions.

The Business Problem

The client is a global leader in the Consumer Packaged Goods (CPG) industry and manufactures a wide range of products in beauty and household care units.  However, their expanding operations, which were now spread across over 15 countries, and huge transaction volumes were creating challenges in their order to cash process. The diverse consumer base and seasonal fluctuations were further adding to the woes and compelling them to leverage the expertise of SpendEdge’s team for a solution. The key objectives they were looking to achieve through this engagement were:

  • Reduce order submission delays.
  • Increase business productivity.
  • Improve cash flow to initiate faster payments.

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