A leading chemical industry client specializing in the manufacturing of coagulants wanted to make their supply chain more resilient to maintain topline revenue growth. Owing to the complexity of their global supply chain, risk occurrence proved to be costlier. To enhance their supply chain risk assessment capabilities, the chemical industry client wanted to develop a risk assessment framework. A detailed quantitative analysis of various categories within the supply chain was carried out to prioritize risks and develop an effective risk assessment framework.
About the Client:
The client is a leading player in the chemical industry, specializing in the manufacturing of coagulants that are supplied to the wastewater management industries across the globe.
The chemical industry client was facing challenges in devising an appropriate risk assessment frameworks that could be implemented across their coagulants manufacturing units.
How did SpendEdge Help the Client?
- Step 1: Risk identification
The first step dealt with the process of supply chain risk identification. It included the creation of a draft list of major risks factors across their supply network.
- Step 2: Probability assessment
The next step after risk identification is to assess the impact of risks and classify them based on their probability of occurrence. This helped the chemical industry client address several issues that affected the flow of information throughout the global supply network.
- Step 3: Risk management framework
The supply chain risk assessment experts at SpendEdge devised a three-step risk management approach that helped the chemical industry client to gain a holistic view of risk factors and develop precise strategies to mitigate the impact or probability of its occurrence.
Key questions answered in this risk assessment engagement include:
Benefits of the Engagement:
The supply chain risk assessment solution offered by our experts helped the coagulants manufacturer gain an overview of various risk factors across their global supply network. Our solutions also assisted the chemical industry in detecting, gauging, and assessing the potential disruptions arising due to a variety of supply chain risks emanating from both external and internal factors. SpendEdge’s risk assessment also offered a detailed lifecycle of risk factors and acted as a tool that helped the client drive business value.
Why incorporate supply chain risk assessment?
The business risks posed by potential supply chain failures are compelling supply chain risk managers in the chemical industry to keep a close handle on their supplier relationships. An ever-growing range of strategic issues arising due to factors such as governance, corporate performance, and sustainability are pressurizing risk managers to include risk assessment as a critical aspect of their business processes.
SpendEdge’s supply chain risk assessment solution helps you to develop a responsive and bespoke approach to risk management. Our experts also offer recommendations that guide the development of appropriate tools and methods including the development of strategies that foster implementation, adoption, and enhancement.
Supply chain risk managers are often well positioned to implement key measures to reduce risks associated with supply chain failures and to ensure superior supplier community performance. But to develop a robust risk assessment framework, different aspects of the supply chain need to be examined in detail. Moreover, implementing risk assessment as the main aspect of your business strategy helps enhance overall business value.
Risk assessment also covers various perspectives of both external and internal supply risks. It includes supplier failure, process breakdowns, poor component quality, and inadequate logistics and distribution skills.
To know more about our risk assessment solutions
A chemical industry client wanted to aggregate raw spend data from multiple sources across the organization including – ERP, procurement, accounts payable, and so on. To gain detailed visibility into their spend patterns, the organic chemicals manufacturer approached SpendEdge to devise a comprehensive approach to spend management by implementing spend analysis based solutions throughout their global supply chains.
A detailed quantitative analysis of various categories within the supply chain was carried out identify spend patterns and benchmark the best practices to be followed. Spend analysis also offered the foundation for making more informed business decisions. Also, the constant monitoring of variables that could possibly impact organizational spend resulted in the development of a robust spend management strategy. The variable included – consolidation within the sector, entry of new players, technological developments, and macroeconomic factors affecting the growth of the organic chemicals market.
About the Client:
A multinational company specializing in the manufacturing of organic chemicals. The client is a leading player in the chemical industry with several well-established subsidiaries operating in over 40 developed economies.
The organic chemicals manufacturer was facing difficulties in assessing spend patterns.
How did SpendEdge Help the Client?
- Step 1: Identification and collection of spend data from several resources
Our spend analysis experts followed a structured approach to gather and consolidate spend data from different business units into a central database. It included data from sources like accounts payable, e-procurement systems, and general ledgers.
- Step 2: Benchmarking of standardized processes
Implementation of spend management tools helped the client to benchmark best practices to be followed.
- Step 3: Devised a three-step approach to analyze and group spend data
The scrupulous approach helped in the constant monitoring of spend data to identify potential savings opportunities and ensure adherence to contract terms.
Key questions answered in this spend analysis study include:
Benefits of the Engagement:
Our spend analysis solution helped the organic chemicals manufacturer to break down the organization’s data silos and transform the gathered spend and contract data in an efficient and cost-effective manner. Our team worked as an extension of the organic chemicals firm to filter out irrelevant information and extract precise content to enhance visibility across various spend categories within the organic chemicals manufacturing space.
Why incorporate spend analysis solutions?
It is essential for organic chemicals manufacturing firms to break down their respective data silos to better identify collaborative procurement opportunities. However, since it is not possible to implement a common ERP or accounts payable system with same data structure throughout independent organizations, spend analysis offers an efficient and effective means to reach the desired result by aggregating data from several sources to provide the desired visibility.
Procurement teams that effectively use spend analysis will be able to better analyze their spend patterns, which will eventually result in higher returns and superior business outcomes. Moreover, with the recent focus on cost reduction, leading organizations across sectors are focusing on enhancing their spend management capabilities.
Spend analysis is one main aspect of spend management that can have a profound effect on the supply chain and the process of analyzing an organization’s spend pattern. A spend analysis engagement offers enhanced visibility into an enterprise’s procurement spend, which subsequently allows the organization to consolidate both its suppliers and its spending.
To know more about our spend analysis solution
- Spendedge Helps a Fortune 500 Medical Device Company Improve Savings Through its Spend Analysis and Benchmarking Services
- Spend Analysis Study Help Logistics Companies Reduce Sourcing and Procurement Costs Across the Supply Chain
The client wanted to gauge the performance of their supply chain. To proactively address the growing complexities of their global supply chain, a specialty chemicals company approached SpendEdge to devise a comprehensive approach to supply chain analysis. A detailed quantitative analysis of supply chain was carried out to accurately forecast inventory and production needs of the specialty chemicals client.
Supply chain analysis enabled the client to integrate risk prioritization as a core strategy in their current risk management system. Following this, the specialty chemicals company redesigned their risk management system to uncover risk factors and include proactive risk mitigation strategies.
About the Client:
A multinational chemical industry client specializing in the manufacturing of specialty chemicals. The client is a leading player in the chemical industry with several well-established subsidiaries operating in over 35 developed economies.
The specialty chemicals company was facing difficulties in gauging the performance of their supply chain.
How did SpendEdge Help the Client:
- Step 1: Developed a three-step methodology that offered a clear roadmap of the specialty chemicals space
Our supply chain analysis experts followed a structured approach to develop a supply chain management framework.
- Step 2: Mapped the supply chain activities
This step involved the identification of activities, establishments, resources, and regulatory requirements that are required to create a flowchart to obtain an overview of the supply chain activities. It also offered details on the flow of raw materials and products throughout the supply network.
- Step 3: Developed a framework to gauge the impact each factor involved in the supply chain
The final step involved the quantification of the supply chain activities and their contribution to the flow of materials both in monetary and physical terms. This helped the client to assess the importance of each factor impacting the overall performance of the supply chain.
Key questions answered in this supply chain analysis study include:
Benefits of the Engagement:
Our supply chain analysis solution helped the specialty chemicals company to analyze every stage of their supply chain activity, starting from the acquisition of raw materials or supplies from the suppliers to the delivery of finished products to the end-user segments. The primary objective of the supply chain analysis engagement was to determine the impact of factors affecting the supply chain and to deliver the finished products more quickly and efficiently to the end-users. Also, the supply chain analysis offered greater visibility into supply chain processes by establishing a cohesive relationship between all tiers of the supply chain.
Why incorporate supply chain analysis?
Supply chain analysis helps in the identification of supply chain activities or processes that can be bypassed to reduce inventory costs and improve forecasts. It also helps organizations to optimize their supply chain processes and minimize redundancy while assisting in the creation of enhanced value-added services.
Supply chain analysis encompasses a wide range of functions that may seem daunting even to a well-established specialty chemicals firm. However, it can be effectively modeled by dividing them into several strategic areas. A supply chain analysis study that aims to determine current real-world practices in supply chain risks implies a radical takeoff from conventional models.
It expects organizations to redefine their supply chain management strategies and adopt a continuous approach to detect supply-side risks, classify risks, and prioritize them to drive business value. Moreover, supply chain analysis is a process, which not only emphasizes on the shortcomings in various segments of the supply network but also between the supply chain and the end-users.
To know more about our supply chain analysis solution
The client wanted to identify and capitalize on new opportunities. To enhance their product offerings by refining their product development strategies, the petrochemical industry client approached SpendEdge to help them gain an improved understanding of different supply chain categories, their customers, and disruptive forces across the industry.
To help the petrochemical industry client identify category-specific best practices, a detailed qualitative and quantitative analysis of different categories was carried out by the category management experts. The engagement also helped the client generate innovative business ideas, which, in turn, helped them to enhance their business efficiency.
About the Client
A world leader in the petrochemical industry space with business units spread across multiple geographies.
The client was facing stiff challenges in enhancing their product development strategies.
How did SpendEdge Help the Client?
Step 1: Detailed inspection of customer needs across different categories to generate new product ideas
A detailed understanding of customer needs was obtained by implementing category management solutions. It included comprehensive insights that were obtained through an analysis of product development trends and product mapping studies.
Step 2: Developed a three-step methodology to tactically address the challenges across diverse categories
The experts followed a structured approach comprising of data validation, industry analysis, stakeholder reviews to develop an accurate product development strategy.
Key questions answered in this category management engagement
Benefits of the Engagement
With the help of the category management engagement, the petrochemical industry client eliminated irrelevant information and extracted precise content to deliver actionable insights to category managers. The engagement also helped the client monitor all the developments across the establishment’s direct and indirect procurement categories.
Why incorporate category management?
Category management helps companies to leverage the demand across the enterprise to achieve maximum savings. Moreover, the rise of globalization and growing technological advancements have resulted in the rapid evolution of procurement categories and business models across industries. This has made it obligatory for procurement professionals to leverage category management solutions and adopt a pro-active approach to category planning.
Today, category management entails access to comprehensive and timely insights to devise a precise category plan. Additionally, appropriate updates on category developments are essential to identify the early warning signals and curtail supply chain disruptions across business units. Furthermore, it is important to keep track of indirect procurement categories such as – HR, IT, finance, and logistics, which can lead to significant liabilities for companies.
To know more about our category management engagement
Client: A nucleic acid labeling company, Size: >$5 billion in revenue, Area of engagement: Supply chain management
Overview of the Nucleic Acid Labeling Market
Nucleic acid labeling techniques have a wide range of applications in life sciences and biotech industries and are mainly used to identify proteins, DNA, and RNA. Currently, multiple labels are available in the market for specific applications. A proper labeling technique is the key to identify specific molecules. However, amid such trends, offering better products and services while being cost-effective and increased focus on establishing systems for ensuring quality and reducing risk becomes a major concern for nucleic acid labeling companies.
“To overcome such challenges, nucleic acid labeling companies must understand the supply chain octopus.”
The astonishing number of incidents that have rocked the business world, such as data breaches, supply chain disruptions, and fraud have often been linked to poor third-party risk management. Organizations are continually faced with challenges in managing a vast network of suppliers, including conducting due-diligence assessments, monitoring supplier performance and stability, and making sure that risks to the organization’s sustainability are kept in check. Additionally, organizations need to ensure that their suppliers are compliant with regulations and standards, as well as corporate guidelines.
The Business Challenge and Journey
Client background: An industry leader in the development and commercialization of nucleic acid labeling with more than 1500 employees in 18 different countries around the world.
- Client issue: The client’s order-to-cash (O2C) process for their supply chain was posing challenges due to their decentralized business units, global reach, cash flow challenges, and inconsistent O2C processes. In addition, they were experiencing high levels of customer dissatisfaction due to non-availability of critical products. Supply chain costs were also increasing due to duplication of effort by various teams, frequent delays in supplying spare parts, higher logistic charges, and expediting fees.
- Client journey: The client integrated the inventory management systems of various business units to provide visibility regarding the availability of labeling materials at all locations. They also collected and analyzed historical data, monitored inventory, analyzed manufacturing and procurement lead times to gain a deeper understanding of the usage pattern and the proper classification of the inventory.
Research methodology: The supply chain management specialists at SpendEdge conducted a comprehensive research and carried out discussions with prominent stakeholders in the biotech industry space to help the client transform their order-to-cash process.
Key questions answered in this supply chain management engagement
The client developed an implementation plan, which reduced their global inventory by over 20%. This helped them increase productivity by over 35%.
To know more about our how our supply chain management solutions help nucleic acid labeling firms
Overview of the Chemical Industry
Over the years, stakeholders in the chemical industry have started focusing on core competencies and realigning their product portfolios to extend their value chains and pursue growth opportunities. Despite the political uncertainty, the global chemical production will be determined by the developments in China, which currently accounts for a majority of the production globally. The chemical industry at large comprises of a diverse and complicated set of products ranging from commodity chemicals, specialty and fine chemicals, and agriculture chemicals. Since the majority of the chemical products are derived from oil and natural gas, the prices of these products fluctuate based on the demand and supply of the products. Also, with relative higher barriers in the competitive environment, leading chemical suppliers have to rely on the manufacturing units to effectively meet the consumer’s demands. Although the chemical industry is facing promising growth with the ongoing mergers and acquisitions, several factors may hinder the growth of the industry.
Here are some of the factors influencing the growth of the industry:
Changes in competition: The chemical industry is witnessing an increase in the competition with the entry of numerous players from Asia. The rise of emerging players especially in Asia and the Middle East has led to the deconsolidation of the chemical industry. Also, it becomes necessary for the players to refine their marketing models to stay competitive.
Increasing economic volatility: In the recent years, the global economy is susceptible to crises due to events such as European E-coil outbreak, the Arab Spring civil uprisings, and the Japanese earthquake. To overcome such challenges, leading organizations are developing stringent strategies to deal with high-impact economic volatility and gain a strong foothold in the chemical space.
Rise in technological innovations: With the latest innovations taking place in the chemical industry such as horizontal drillings and fracturing, dedicated players are facing pressures to stay updated with the current technologies. Also, the rising demand from the automotive, construction, and pulp production segments is further driving the demand for products in the chemical space.
To address these challenges and meet the demands of the end-user segments, organizations are leveraging supplier risk analysis solutions. Supplier risk analysis is the systematic approach to identify, assess, and mitigate supply risks in the chemical space. Supplier risk analysis aims at reducing vulnerability and ensuring proper continuity in the supply of products in the chemical suppliers space.
The Business Challenge and Our Journey
The client, a prominent chemical supplier, wanted to identify, assess, and mitigate supplier risk and gain better visibility into the supply chain process. The client wanted to seek ways to profile the prominent chemical suppliers and devise a risk segmentation analysis to evaluate each supplier. With the help of a supplier risk analysis solution, the client also wanted to ensure that the chemical suppliers are appropriately monitored and managed throughout the supplier lifecycle. The primary concern of the client was to refine their existing supply chain model and streamline the supplier process to reduce the time-to-market for the products offered.
To cater to the business requirements and ensure better delivery of the products, the supplier risk analysis experts at SpendEdge carried out an extensive research methodology. The methodology comprised of interviews and discussions with leading stakeholders in the chemical industry. To gain a comprehensive edge of the supplier landscape, the experts also compiled information from a wide array of secondary sources including paid industry databases, company presentations, and government bodies in the chemical suppliers space.
SpendEdge’s supplier risk analysis solution helped the client revisit the risk models and develop more accurate insights into the risks associated with the chemical suppliers. The solution also ensured real-time insights into the supplier performance from the manufacturing of the products to the delivery of the same to the target audience. The client also gained adequate insights into the supplier contingencies and was able to offer better visibility into the supply chain patterns into the chemical suppliers space.
Key questions answered in this supplier risk analysis include:
The supplier risk analysis engagement offered by SpendEdge sought ways for the client to reduce the time-to-market for the products offered. The client was able to eliminate the potential bottlenecks such as delays in the launch of major products and services, disruption in supply, regulatory penalties, and environmental health and safety concerns.