Tag: benefits of spend analysis

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%.

source to pay

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!

IR35

Spend Analysis : Assessing the Current Spend and Improving Supply Chain Efficiency for a Medical Devices Company – SpendEdge

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

The client is a leading medical devices company, specializing in the development of medical devices, laboratory instruments, and diagnostic products. The company supplies devices to hospitals, laboratories, and clinics worldwide. The company has ingrained its place as a leader in the medical devices market.

The Business Challenge 

The future looks sharp for the medical devices industry. With global economic growth, innovations and an aging population that has a growing need for healthcare, revenue for medical devices is poised for growth. However, in this turbulent environment, companies that can shift their supply chain priorities and better manage spend will be able to deliver significant value. Moreover, the rising need for supply management and strategic cost management have urged players in the medical devices manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical devices manufacturing space to identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. The spend analysis solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.

The client, a renowned medical devices company was facing challenges in reducing the cost across the supply chain and managing their tail spend. While public spending has become endemic, the client realized the need to drive more competitive pricing. Moreover, the client’s objective was to adopt spend analysis strategies to identify and optimize their spend areas. Additionally, the client needed to streamline their supply chain management and subsequently maximize profits by leveraging SpendEdge’s spend analysis solutions.

(more…)

cyber security

Spend Management Solutions: A Holistic Guide for Procurement Companies

“Only a truly integrated spend management solution can fetch value for your company and result in intelligent procurement.”

Limited supply chain visibility, poor supplier transparency, new regulations, spend creep, contract management, risk mitigation, and the growing need to do “more with less” are some of the key challenges that procurement companies face. Spend creep has become one of the biggest challenges for companies today as companies are spending extensively to stay ahead of the competitors.

Unnecessary spend happens when businesses buy additional items, products or services, from suppliers that aren’t needed. Also, it happens because of misguided bid management process, weaker supply chain management systems, and lack of auditing and spend analysis. Therefore, procurement professionals need to have the right spend management solutions to tackle these challenges efficiently and effectively.

At SpendEdge, we understand the impact that spend management solutions can have on your business. And to help companies identify latent opportunities to devise strategic plans to minimize their expenditure in every category, our team of experts have provided a comprehensive guide to spend management.

(more…)

IR38

Why is Spend Analysis a Necessity for Reducing Facility Management Costs?

The market for facility management services is a multi-billion dollar industry in the U.S. alone. Facility management involves the integrated management of multiple and interdisciplinary technologies, personnel, systems, and processes. The ultimate goal of facility management is to promote an efficient and collaborative environment to meet and fulfill the key objectives and mission of an organization. However, this requires business owners to invest in strategies that are going to allow their facility management personnel to work with large sets log compliancy information, asset maintenance information, and every process through the facility management lifecycle. One of the primary challenges involved in facility management is that as more data points enter a facility, it becomes harder to ensure that accurate asset maintenance records are kept. Due to such factors, companies in the facility management industry are unable to reduce risks and increase operational control.

Key facility management challenges

Efficient facility management involves constantly tackling critical issues every day in the face of a host of obstacles. They are also responsible for bringing together a multitude of distinctive elements. Diligence and flexibility in handling facility management not only defines their success but also that of an entire company. Both large and small businesses must devote a considerable amount of their capital and energy to ensure their facilities are properly maintained and are prepared to meet the challenges of the future.

Cost management

Every instance of demand placed in a facility management enterprise has a cost associated with it. This includes costs incurred on repairs and maintenance, hiring of staff, inventory and supplies, and safety and security. We at SpendEdge, help clients in facility management organizations track cost expenditures, including detailed historical analysis, to allow for proper administrative reporting and reduction of operational costs.

Resource management

Another key facility management challenge is the need to rely on many resources to operate the facility efficiently. This includes both full and part-time staff. It also requires different types of service providers. Furthermore, due to limited budgets, facility management teams are expected to deliver more at lower costs. In this case, facility management companies are left with no choice than to identify their optimal staffing requirements and maintain a constant flow of communication between the team so that they are aware of how to increase the overall productivity and improve efficiency.

Meeting compliance guidelines

It is essential for companies to ensure the statutory regulations for managing their documents. This requires a process to ensure that data is stored correctly. In order to remain compliant, it is also important to stay updated on the legislative changes. Facility management professionals often face problems associated with inadequate record keeping that do not meet the expected compliance standards.

 

One of the best ways to resolve facility management challenges is to bring in a professional and competent solutions provider to help you carry your load. SpendEdge has been helping facility management professionals across the world to build strategies that increase their profits while staying within the budget. Contact us today!

Contact US

Cutting facility management costs: What businesses must do


As businesses face the need to utilize state-of-the-art infrastructure to remain competitive, controlling facility management spend becomes more important than ever before. Strategic planning is critical to align capital spending with budgets and ensure proper allocation of resources in facility management. While budgets are typically controlled by individual departments within the organization, there are certain steps every facility management professionals can take to contain costs. Here are five ways facility management can control the overall spend:

  • Purchase Pre-owned, Refurbished or Rental Equipment
  • Preventative maintenance of existing equipment can help reduce operating expenses and create a safer work environment
  • Research the supplier and the equipment through product reviews and testimonials for optimal prices and service.
  • Organize data and analytics to gain better visibility of expenses across the organization and enable the allocation of resources in the most efficient manner
  • Leverage spend analysis to get all the possible benefits from the company’s current spend cube

procurement risks

The 4C’s of Spend Analysis – Saving Your Hard-Earned Dollars

Every organization should thoroughly monitor where their hard-earned dollars and cents are spent. A proper tracking and monitoring of spends across categories increases the operational efficiency of the organization and improves the success of subsequent sourcing strategies. Penetrating, insightful, and actionable analysis of spend provides a strong base to devise effective sourcing plans. Organizations can opt for spend analysis solutions which will cleanse, validate, enrich, classify and report the spend data across spend categories and thereby generate accurate information and actionable insights.Contact US

4C’s of Spend Analysis

Spend Consolidation

The first essential step for a proper category spend analysis is to identify all data sources to collect spend data including accounts payable, pCard, eProcurement systems, and general ledger. Large organizations running on multiple ERP platforms should consolidate their data to comprehend the volume and costs associated with spending.

Spend Classification

After gathering one consolidated spend data into one central database, it is essential to standardize the spend data to facilitate the grouping and classification process. It is essential to correctly attribute each spend such as office supplies, legal, marketing travel, direct and indirect spend to their right category so an accurate analysis can be performed later. This process also helps in identifying duplicate and maverick purchases across different categories to ease the supplier negotiation priorities.request proposal

Spend Collaboration

Organizations can identify opportunities to consolidate suppliers based on similar purchases. Having a complete spend visibility of each category paves the way to find the best supplier for the given category in order to gain better value from a single supplier. Such synergies are very crucial in maintaining a long-term supplier relationship which can be beneficial in the long run.

Spend Control

An extensive spend analysis provides comprehensive information and insights for a CPO to make informed decisions on their organizational spend. Decisions supported by spending data can significantly increase the operational efficiency and subsequently set benchmarks for the future. Additionally, organizations should repeatedly assess their spend data and improvise their spend strategy.

To get detailed insights into spend analysis tools, supply chain management, spend data, procurement services, category spend analysis and spend analysis in procurement request a free demo now

SE Demo

Related Articles:

Request free proposal