Supply Chain Risk Management Case studies Archives - Page 2 of 11 - SpendEdge

Category: Supply Chain Risk Management Case studies

Designer Toys Supply Chain Management – SpendEdge Case Study

Case Overview

A leading designer toys manufacturer identified a list of fundamental skill areas to target across the supply chain, including supply chain logistics, procurement, planning, manufacturing, and customer service. As a result, the designer toys manufacturer approached SpendEdge to help them overcome their predicaments. During the course of this engagement, SpendEdge worked with the designer toys manufacturer and rolled out a two-phased approach to supply chain management and development.

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Client Profile

The client – is an American multinational designer toy manufacturing company based out of California, U.S. The company employs over 25,000 individuals.


The designer toys manufacturer’s primary goal was to develop critical functional skills that are needed across their global workforce to achieve supply chain excellence, with a specific focus on enhancements to the metric of On Time in Full (OTIF).  Additionally, the client acknowledged a list of fundamental skill areas to target across the supply chain, including supply chain logistics, procurement, planning, manufacturing, and customer service.

Solutions Delivered

With the help of SpendEdge’s supply chain management solutions, the designer toys manufacturer developed core supply chain skills and proficiency across their global population, from essential supply chain processes to deep functional oriented processes in areas such as product lifecycle management.

Continue reading to know more about the functions of supply chain management and the real importance of supply chain management or request a proposal

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SpendEdge’s Supply Chain Management Helps a Leading Electric Vehicles Market Player Identify US$ 79 Million in Savings

Electric Vehicles Market

The global electric vehicles market is changing rapidly. Once derided as toys, electric vehicles are on pace to reach incredible numbers this year, up from just a few hundred thousand over the last half-decade.

Governments across the globe have offered generous electric vehicles purchase incentives to help get the market rolling. Simultaneously, tightening fuel economy standards will require significant electrification of the vehicle fleet and China’s ‘New Energy Vehicle’ ratio is forcing automakers into electric vehicles faster than most of them would like. request proposal However, electric vehicles market players are facing challenges in terms of the charging infrastructure in many countries and the supply of raw materials including cobalt.

Business Issues

  • The client: A leading electric vehicles market player
  • Area of Engagement: Supply chain management

The client- is an American multinational corporation based in California, United States that specializes in electric vehicles. The company aims to offer electric vehicles at affordable prices to the average consumer in the coming years. The client wanted to inspect several categories of automotive components, which added up to $750 million in annual spend. Additionally, the objective of the client was just not to reduce the amount spent in the categories, but also rebalance their supply base to address the rising importance of global markets.

Summary of our Supply Chain Management Engagement

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Client Journey

SpendEdge put across a team of supply chain management experts to extract the client’s spending information from internal databases and project future spending volumes. The experts also helped the client analyze the RFQ responses and conducted multiple rounds of negotiations with the potential suppliers. Furthermore, the experts conveyed the importance of supply chain management to the client’s business.  

Solution Benefits and Business Impact

With the help of SpendEdge’s supply chain management solution, the electric vehicles market player was able to shorten the time needed to identify a pool of capable suppliers in low-cost countries. Additionally, the electric vehicles market client obtained a deeper understanding of global supply capabilities and achieved its goal of supplier diversification to address the increasing importance of supply chain management. request proposal This further helped the client identify US$ 79 million in savings for their categories, representing almost nine percent in annual savings.

Importance of Supply Chain Management

Supply chain management (SCM) is an integral part of every organization. Supply chain management is the dynamic management of supply chain activities to accomplish a sustainable competitive advantage and maximize customer value. Additionally, supply chain management streamlines everything from product flow to unforeseen natural disasters. Also, with an effective supply chain management, organizations can diagnose problems and disruptions accurately.

A must-read case study for strategy experts and decision makers looking to understand the importance of supply chain management

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Outdoor Gear Market Supply Chain Optimization: A SpendEdge Success Study

For years, outdoor gear distributors are trying to maintain a delicate balance of fulfilling expectations without having product overages and losing potential profit in fire sales. To gain improved control, outdoor gear market players need an enterprise-level view of inventory that the flexibility of the cloud can enable with ease. Additionally, with integrated operations, inventory, and financials, businesses can easily view demand history of the products to balance customer expectations with actual demand, drilling down to even the material level to request proposal ensure accurate lead times, cost estimates, and stock to streamline inventory management and enable more effective logistics.

Moreover, in today’s competitive environment, maintaining business and growth in standard channels is no longer enough. It’s important for outdoor gear market players to create relationships with their customers, mindful of the unique place these products hold in the hearts and minds.

Business Issues

  • The client: A leading outdoor gear market player
  • Area of Engagement: Supply chain optimization

The client – an American multinational corporation that is involved in designing, developing, manufacturing, and sales of outdoor gear, apparel, footwear, and accessories. The company is headquartered in Oregon, U.S. It is the world’s largest supplier of outdoor gear, with revenue more than US$34 billion in 2017. The client player was facing fierce competition in the outdoor gear market and the threat of vertical integration from peer manufacturers was putting pressure on the company’s supply chain. The challenges identified by the client were related to their supply and demand. These issues aggravated by the company’s growth and capacity constraints – and they lead to a loss of sales and excess inventory totaling US$ 5.2 million.

How Can Supply Chain Optimization Help Outdoor Gear Market Players?

With effective supply chain optimization in place – which includes strategies and best practices for coordinating and integrating all the functions, transactions, activities, and people in the entire value chain – companies will be able to address and adapt to ever-increasing complexities. Supply chain optimization also allows organizations to streamline their processes to ease the flow of people and the products created. Moreover, supply chain optimization aids in logistics, transport, and regulatory compliance which consequently plays an instrumental role in Request Demodecreasing liabilities, reducing hold-ups, and mitigating vulnerabilities at large.

Summary of our supply chain optimization solution

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Client Journey

SpendEdge’s supply chain optimization specialists tailored a research approach which included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures to help the client overcome their predicaments. The specialists also congregated information from various proprietary sources to help the outdoor gear market player gain more visibility into their sourcing and procurement processes and identify the major areas of spend.

Solution Benefits and Business Impact

With the help of SpendEdge’s supply chain optimization engagement, the outdoor gear market player carried out a thorough analysis of their supply chain and increased focus on terms of sale, order quantity, and consolidation at the origin. The client also halved order quantity, increased order frequency, and reduced request proposal inventory levels with the help of this engagement. This further helped the client achieve a saving of US$ 13 million.

Future of Outdoor Gear

Terms like urban outdoor, athleisure, and lifestyle and sustainable fashion have dominated the outdoor gear market. This means that the image of customers and the relation between customer and brand has also transformed. Additionally, sustainability and responsibly produced outdoor gear are becoming more and more important for customers today. As a result, companies in the outdoor gear market must take the necessary steps to improve customer satisfaction and achieve a competitive advantage.

A must-read case study for procurement specialists and decision makers looking to develop an understanding of the outdoor gear market

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SpendEdge helps a Leading Food Retailer Develop a Risk Management Framework to Save Millions – A Retail Industry Engagement

Engagement Overview:

A leading player in the food retail industry wanted to enhance their procurement strategies to overcome operational risks. The failure of their supply chain strategies had greatly impacted their revenue, as a result of which they wanted to implement a detailed supply chain risk assessment to gain a competitive advantage.

SpendEdge was approached by the retail industry client to leverage its expertise in risk assessment and develop an accurate risk mitigation strategy. The supply chain risk assessment engagement entailed a quantitative analysis of various supply chain categories to devise an exclusive risk management approach.

About the Client:

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A leading multi-brand food retail major operating in the U.S., which recently made its way into the coveted top 10 listing of the world’s largest and most successful retailers.

Business Challenge:

The retail industry client was facing several challenges owing to their inefficient supply chain risk management strategies.

How did SpendEdge Help the Client?

  • Step 1: Identifying the risk factors and estimating their impact on business operations

Supply chain risks deter businesses from achieving their organizational goals; hence, the first step in supply chain risk assessment deals with the identification and estimation of the impact of risk factors. By doing so, the food retail client was able to classify risks based on the severity of the impact.

  • Step 2: Developing a suitable supply chain risk mitigation strategy

An effective risk mitigation strategy utilizes three resources namely – processes, people, and technology. Also, since each of these factors plays a key role in analyzing the gathered data, it’s imperative to establish an infrastructure that is dedicated to continuously gathering, interpreting, and acting on the gathered data. request proposal

  • Step 3: Developing a precise risk assessment framework

To devise an effective supply chain risk assessment framework, it is essential to analyze the gathered data to identify risks and develop strategies to avoid mishaps. The developed risk assessment framework also helped them identify and manage both short and long-term supply chain risks.

Benefits of the Engagement:

The risk assessment experts at SpendEdge devised a three-step comprehensive approach that helped the food retail client to develop a precise risk assessment framework to enhance procurement efficiency.

Why is supply chain risk assessment essential in the retail industry?

One of the most demanding concerns facing retailers today revolves around supply chain disruptions and its associated impact on revenue, profit, and brand reputation. Moreover, financial crises, natural disasters, and changes in political stability across developing countries have highlighted vulnerabilities both for individual organizations and for industries. However, supply chain risks also include risks arising due to factors such as supply disruptions, transportation delays, embargos, and outsourced service failures.

The diversity in the retail risk environment demonstrates the importance of mitigating supply chain risks with an integrated risk assessment framework. This is exactly what the supply chain risk assessment experts at SpendEdge specialize in. Our industry-specific guidelines help clients to implement an accurate supply chain risk assessment framework to ensure that they meet the industry and framework standards.

Key questions answered in this supply chain risk assessment engagement include

Risk Assessment

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Our Findings:

SpendEdge’s supply chain risk assessment solutions are guided by the principles of supply market intelligence to help clients enhance their overall supply chain efficiency. In this risk assessment engagement, the three-step approach aided the retail industry client to integrate supply chain data from various sources to identify supply chain risks and implement appropriate risk mitigation strategies.

Our approach empowered the retail industry player to be more confident in their data so that they can quickly detect supply chain risks. Also, drawing conclusions on this engagement our experts suggest that it is imperative for every organization to identify the key elements of the supply chain that are at risk and keep them under close supervision.

While risks in the supply network tend to paralyze most supply chain operations. Successful businesses are the ones that efficiently manage such risks and reinstate confidence throughout the global supply network. Nevertheless, if rightly done, the benefits are much more than cost reduction.

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Devising a Robust Supply Chain Risk Management Framework for a Leading CPG Player – A SpendEdge Case Study

Engagement Overview:

A leading player in the CPG industry wanted to devise an effective and efficient supply chain system to compete in new market segments. To do so, the client approached SpendEdge to enhance their supply chain capabilities and overcome supply chain challenges. A detailed quantitative analysis of various categories within the supply chain was carried out to analyze spend patterns and develop an effective supply chain risk management framework to suit the needs of the CPG industry client.

About the Client:

The client is a leading player in the  CPG industry, specializing in the production of a wide variety of packaged goods ranging from paper-based products to food and beverages. Also, having established their presence in the MEA market segment, the client was looking at expanding their operations to newer regions.

Business Challenge:request proposal

The CPG industry client was facing challenges in devising a flexible supply chain risk management framework.

How did SpendEdge Help the CPG Industry Client?

  • Step 1: Identifying internal and external supply chain risks

The first and the most crucial step in devising a supply chain risk management framework revolves around the identification of risk factors affecting the organization’s supply network. These risks include both external and internal risks such as supply-side risks, demand-side risks, business risks, environmental risks, and other physical risk factors. A detailed analysis of each identified risk factor helped identify scenarios that are likely to occur, it also enabled the client to answer essential questions such as why they occur and how can the company deal with such risks.

  • Step 2: Setting standards for the organization’s supply chain processes

Once the risk factors across the global supply network are identified and grouped into different categories it is necessary to take steps to incentivize the global supply network so as to make it function in the most suitable way to drive maximum value. This means utilizing more than just the traditional metrics and setting new supply chain standards to suit the functional needs of the business. However, identifying the right KPI’s is crucial for any business and revolves around the specific business needs, the market segment, market stability, and fluctuating demand.

  • Step 3: Development of a robust supply chain risk management frameworkrequest proposal

The supply chain risk management experts at SpendEdge devised a three-step comprehensive approach that helped the CPG industry client to gain a holistic view of risk factors across their supply chain. The devised framework also enabled the CPG industry client to enhance the visibility of supply chain processes, which ensured seamless upstream and downstream flow of information.

Key questions answered in this supply chain risk management study include:

Consumer packaged goods

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Benefits of the Engagement:

The supply chain risk management framework enabled the client to redefine the supply chain strategies to enhance visibility. The solutions offered by our experts also assisted the CPG industry client in devising appropriate supply chain strategies that helped them detect, gauge, and assess risk factors throughout their global supply network.

Importance of supply chain risk management for CPG industry firms

In recent years, companies operating in various industries be it retail or CPG industry have realized the importance of maintaining a robust supply chain management system across their business segments. Players in these industries have also understood that it is the supply chain that deciphers business strategies into day-to-day interactions within and beyond the organizational level. Several such factors have compelled leading businesses in the CPG industry to make strategic investments in enhancing their supply chain capabilities in order to overcome organizational silos.

Moreover, even the well-established CPG industry firms are focused on reinventing their supply chain processes in spite of having achieved a leading position in their industry. This is because by doing so, companies are in a better position to tackle supply chain risks and respond proactively to the fluctuating- economic, technological, and competitive landscape to exploit new market opportunities and CPG industry trends more effectively than their peer groups.

Our Findings:

In this supply chain risk management engagement we helped a CPG industry client transform their supply chain performance by implementing a three-step approach. This approach can also be adopted by other CPG industry players to maximize the potential of their supply network.

Leading CPG brands have already transformed their supply chain systems with respect to time and investment. So, what are you doing to turn your supply network into a source of competitive advantage?

 To know more about our supply chain risk management solutions and how it can help CPG industry firms

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