Category Management Study – Cost Saving Strategies for Engineering Service Providers
SpendEdge offers category management solutions for a global engineering service provider that helps them understand the current market trends, drivers, top supplier profiles, challenges, and supplier engagement models.
The engineering service sector offers a huge opportunity for fresh talents, and any firm with dynamic skills can make an entry into the marketplace. Gaining valuable insights on consumer demand trends, leading suppliers, and adopting best-in-class skills will have a significant impact on the product offerings and profitability of a company. Leading service providers are increasing their focus to tackle business challenges such as increasing complications related to resource allocation, increasing operational costs, declining profit margins, and growing needs for technological investments to stay competitive in the market. SpendEdge’s category management solutions offer insights on key parameters in selecting suppliers, procurement best practices, best practices for supplier relationship management, and engagement practices for buyers. The study also provides a comprehensive overview of the current category sourcing and procurement strategies.
The requirement for cost effective services and access to the best talent is one of the key focus areas of various suppliers in the global market. The bundling of services such as design planning, maintenance, support services, and consulting are an effective way of cost reduction and maintaining the quality of services. The introduction of software solutions such as CAD will help small and medium-sized industries acquire these services at a lower cost.
Sourcing services from low-cost countries
Many organizations in the industry are sourcing their services from countries with low labor costs to reduce their operating expenses. Varied tasks such as consulting and designing products are being outsourced to low-cost markets such as India to leverage the cost-effective technical expertise available in those countries. Accessing and acquiring services from different locations will enhance the service quality and competitiveness of these suppliers in the global market.
Integration of IT and engineering services
The evolution of business models is propelling the demand for a combination of IT and engineering expertise. Service providers are offering integrated IT and engineering solutions to gain a competitive advantage. These integrated services enhance the productivity and quality of operations. Industries such as banking, automotive, healthcare, and transportation are driving the growth of such integrated services in the global market.
What solutions SpendEdge offer to businesses
The team of procurement experts at SpendEdge provide a category management solutions that provides an assessment of market trends and supplier engagement models, best-in-class industry benchmarks, and a gap assessment to identify the key areas of improvement. Some of the solutions offered are listed below:
- Improve cost-saving effectiveness and develop robust strategies based on the best benchmarking standards in the industry
- Offer category-specific insights on four major areas of product design, plant automation services, plant design and product engineering, and enterprise and management
- Analyze the current sourcing and procurement trends in the market
- Identify category market insights, market size and segmentation, supplier competencies, and cost saving opportunities through assessment of current spend practices and improvement areas
- Provide successful implementation of category management strategy for the vital spend areas, amend category snapshots and supplier negotiations, and capitalize on supplier performance through implementation of supplier relationship management
Read our complete case study titled – Category Management Solutions Help a Global Engineering Service Provider Get a Detailed Understanding of the Category
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