How to Utilize Industry Best Practices for Benchmarking_
A leading media and entertainment industry client wanted to compare and benchmark the industry’s compliance requirements, structure, industry standards, and processes to the external practices of the peers within the specific market segment. The media and entertainment industry client was also looking at formulating a prioritized list of improvement opportunities to justify their budgetary decisions.
The client approached SpendEdge to develop a comprehensive approach that would help them develop an appropriate best practices model. During the course of this engagement, a detailed quantitative analysis of various supply chain categories was carried out to help the client identify the industry best practices.
About the Client
The client – a leading media and entertainment industry client.
The media and entertainment industry player was facing predicaments in creating a prioritized list of improvement opportunities and identifying the timeline for integrating the improvements, which, in turn, posed several other difficulties in justifying their overall budgetary decisions.
How did SpendEdge Help the Client?
Step 1: Identification of the key structure, performance, and effectiveness metrics
This step revolved around the identification of the key performance metrics, industry standards, and effectiveness metrics. As the objective was to devise a suitable industry benchmarking best practices model, the collected information was analyzed to identify the benchmarks.
Step 2: Selecting the target organizations of the desired size to benchmark
Post the conclusion of the data collection and analyzation phase of the industry benchmarking process, it is essential for companies to identify and refine the peer companies to summarize the findings and opportunities based on the data.
Key questions answered in this case study
Benefits of the Engagement
The best practices experts at SpendEdge recommended a robust benchmarking model to help the client validate their budgetary decisions. The model also allowed the media and entertainment industry client to effectively compare their standards with that of the peers and subsequently devise a robust industry benchmarking strategy.
Why industry benchmarking best practices?
Industry benchmarking best practices primarily deals with the process of comparing an organization’s compliance factors and processes to the external practices of the peers and the industry. Industry benchmarking best practices also helps in the process of making a judgment about the effectiveness of an organization’s compliance program.
Devising an effective industry benchmarking best practices model can help companies stay abreast of the competition and evaluate the benchmarks periodically. Industry benchmarking best practices can further enhance the category growth across the supply network by examining peer group data to identify and implement best-in-class organizational improvements.
To know more about our industry benchmarking best practices for media and entertainment industry
The recovery of the global economy has resulted in a significant rise in disposable incomes among consumers, both in the emerging and developed markets. This has resulted in the steady growth of the beauty care products industry. Additionally, it has also been noted that the present generation individuals are becoming more fashion conscious, and are turning to beauty care products to express their individuality. However, selection of the right insurance brokers and suppliers directly impacts the profitability of the company. As a result, many beauty care products companies have started utilizing benchmarking analysis to measure the impact of commercial decisions on profitability.
Moreover, the benchmarking analysis studies offered by SpendEdge help beauty care products manufacturers to adopt best-in-class sourcing and procurement strategies to improve their profitability.
The Procurement Pain Point and Insights Offered
A leading beauty care products company wanted to evaluate the relative position of one of its key brands against the competitor’s brands, which were growing faster and offering innovative products. Additionally, the client wanted to reduce maverick spends by implementing an efficient and best-in-class procurement process across the supply chain.
The benchmarking analysis experts at SpendEdge carried out a comprehensive research methodology, which involved primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client.
During the course of this benchmarking analysis study, the beauty care products client was able to conduct an end-to-end value chain analysis to create a set of operational, financial, and strategic benchmarks across the supply chain. The client also gained an in-depth understanding on how functional drivers and commercial decisions impacted the brand cost structure and profitability.
Key questions answered in this benchmarking analysis study include
The benchmarking analysis study helped the beauty care products client identify markets for future investments. Also, our recommendations helped them achieve greater commercial success across the supply chain.
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Lately, the pharmaceutical industry has witnessed astonishing growth due to the increase in the demand for long-acting formulations and devices with lower adverse effects and high efficacy. According to our industry best practices specialists, it has been noted that the pharmaceutical industry is facing substantial operational and economic challenges. As a result, many pharmaceutical firms have started adopting industry best practices studies to make the most of the opportunities and gain a stronger foothold this market space.
The industry best practices benchmarking studies offered by SpendEdge help pharmaceutical industry players adopt best-in-class procurement and sourcing strategies.
The Procurement Pain Point and Insights Offered
A leading pharmaceutical industry player wanted to identify peer group companies and their key suppliers. Additionally, the client also wanted to cut down costs by implementing a best-in-class and efficient procurement process. Furthermore, they also wanted to assess their peer group company’s success stories and approach towards innovation.
The industry best practices specialists at SpendEdge carried out a blended research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client.
During the course of this industry best practices benchmarking study, the pharmaceutical industry client specializing in disposable syringes was provided with a list of the peer group companies and their key suppliers. The list provided helped the client identify the key drivers to enhance their procurement process. Additionally, the client was also able to optimize their techniques and implement an efficient procurement process.
Key questions answered in this industry best practices study include
This industry best practices benchmarking study helped the pharmaceutical industry client implement best-in-class procurement and sourcing strategies. Additionally, the client was able to formulate a better negotiation strategy with their suppliers. As a result, the leading pharmaceutical industry player specializing in disposable syringes was able to cut down their overall costs.
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The medical device industry is regarded as one of the primary industries in healthcare, driven by innovation and new technologies. Over the last decade, this industry has seen an extraordinary growth in innovative and improved technologies. This has led to the development of state-of-the-art medical devices and has resulted in major advancements in the healthcare industry. However, delivering value in this current dynamic healthcare environment requires an understanding of a broad set of relationships, partnerships, and joint venture initiatives. Consequently, to establish themselves in this market space, many medical device manufacturing firms have started opting for industry best practices studies to gain insights into the global category management structure and a list of talent with varied skill sets.
The Procurement Pain Point and Insights Offered
A leading medical device manufacturing firm wanted to transform its procurement function with the primary goal of becoming a lean, best-in-class, scalable, and efficient procurement organization to lay down a strong foundation for improved efficiency gains and double-digit procurement savings. The client also wanted to identify a list of key competitor companies and their key suppliers. Furthermore, they wanted suggestions on the best-in-class sourcing and procurement strategies.
To address the client specific business challenges, the industry best practices specialists at SpendEdge followed a blended research methodology consisting of primary and secondary research coupled with qualitative and quantitative data collection methodologies. With the help of our industry best practices study, the client could identify the key drivers for this procurement transformation project, including organization design, people, process, optimization, and technology. Additionally, the client was provided with all necessary information to understand the existing position, responsibilities, and essential competencies.
Key questions answered in this competitive pricing study include
The industry best practices study helped the client identify the best practices followed by the competitor’s companies and their suppliers. Additionally, the client could identify the inefficient and unproductive processes across platforms and discard them. Furthermore, SpendEdge’s industry best practices study also helped the client gain insights on the best-in-class metrics and strategies to measure process efficiencies and effectiveness.
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SpendEdge’s supply market intelligence study on the spend analysis and benchmarking services for a fortune 500 medical device company identifies cost savings opportunities by evaluating spend areas, supplier performance, process efficiency, and legal compliance.
Sourcing Scenario in the Pharmaceutical Sectors
Pharmaceutical as an end product is a sensitive product which is governed by various laws and regulations and requires approved clinical trials before it is ready for human use. Pharmaceutical companies have to ensure the maintenance of an optimal level of inventory as higher inventory can lead to problems relating to expiry date, storage temperature and conditions, and wastages. Sourcing in a pharmaceutical company is different and involves a host of complications than sourcing in other companies. Multiple factors are to be considered before pharmaceutical products sourcing such as patent status, innovations in medicine, the complexity of the product, national and international standards, sanitary and phytosanitary measures, and environmental impact.
Outsourcing it to the Experts
Pressures for cost optimization and increasing efficiency of the supply chain is driving pharmaceutical companies to outsource the procurement function to the experts. With minimal expertise in logistics function, outsourcing allows the pharmaceutical company to concentrate in their core competency. Companies with expertise in procurement function can provide specialized logistics knowledge regarding medicine or tissue samples. Such companies can also identify strategic sourcing partners and establish a collaboration with them in order to lower cost and extend the geographical reach.
Solutions SpendEdge offers to businesses
SpendEdge’s supply market intelligence study for a leading pharmaceutical company provides insights into the spend patterns, best sourcing practices, supplier identification, and contract negotiation strategies. The solutions offered includes:
- Deliver better high-cost savings in comparison to current spend status
- Provides best practices study on the sourcing and procurement of pharmaceutical supplies
- Offers detailed market overview for the logistics and supply chain practices in pharma industry
- Delivers in-depth insights on procurement models, supplier positioning, and supplier performance evaluation process
Read our complete case study titled – Sourcing of Pharmaceutical Supplies: A Best Practices Study by Spendedge
Other case studies you might be interested in:
- Supply Market Assessment – Gaining Best Contractual Terms for a Leading Pharma Company
- Supply Market Intelligence – Increasing Procurement Efficiency and Cost-Saving Opportunities for Aircraft Manufacturers
- Supply Market Intelligence Solutions Help a Leading Food and Beverage Company
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The Procurement Pain Point
To understand the general practices in providing company cars to employees, a global leader in manufacturing and supplying cost-effective healthcare solutions approached SpendEdge to engage in a research study focused on the assessment of the best practices for the management of company cars in the target regions. The procurement market intelligence study on company cars management would also help the client gain comprehensive insights into the supply market, pricing, and procurement strategies specific to company cars category.
The primary objective of this company cars management study was to help the client gain a clear understanding of the general best practices for company cars management and the procurement strategies for offering such services to employees. Additionally, this procurement market intelligence study on company cars management also helped the client gain insights on how companies classify perk and non-perk cars.
To meet the category requirements for company cars management, SpendEdge’s team of procurement market intelligence experts followed a blended approach of combining in-depth secondary research with primary interviews and track the latest developments and procurement trends in the market. Morover, our procurement market intelligence experts also reached out to industry experts and key stakeholders to understand the market’s short and long term growth prospects and changing trends for company cars management.
Procurement Insights Offered and the Outcome
To address the requirements specific to the needs of the client – a global company manufacturing healthcare devices – we deployed a team of supply market analysts who followed a blended research methodology consisting of in-depth qualitative and quantitative research followed by data analysis and insights development. Our procurement specialists worked directly under a project manager with significant experience in conducting specific procurement studies for vehicle fleet categories.
In a mere span of just five weeks, the client – a leading healthcare company that primarily focuses on manufacturing medical devices – was able to gain a clear understanding of the practices followed in providing cars to employees and also gain insights on the procurement best practices, which would help reduce the overall cost for the company. Additionally, the procurement market intelligence solution for company cars management also helped the client develop robust strategies for the effective management of company cars for employees and also understand the approaches and policies followed by other peer group companies.
Some of the additional questions answered by our procurement market intelligence study on company cars management includes
– What are the general best practices for company cars management?
– What is the basic operating model?
– Do companies typically lease, or purchase vehicles?
– What are the typical pricing/leasing options?
– What are the average prices per car?
– Do the peer group companies utilize vehicle tracking companies as a way to monitor personal use?
This case study offers comprehensive information on how our procurement market intelligence study helped a global client understand the best practices for company cars management.
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Business Challenge: Issues with visibility of the best contracting practices
A client of ours, a large mining company was facing issues with visibility on the contracting best practices that it could implement and the benefits that could be achieved.
Situation: The client lacked clarity on ways of improving contracting practices
The procurement department of the client was keen on improving their relationship with the key suppliers, as well as the implementation of the best contracting terms to realize the best possible business and cost benefits.
Approach: We took an approach that involved benchmarking of best practices followed by peer group companies and developing recommendations
Our approach involved identification of peer-group companies in the client’s industry and other comparable industries that followed similar procurement practices. We then conducted a deep-dive assessment of the best practices followed by the shortlisted peers and did an evaluation of the business and cost benefits that they were able to achieve through these best practices. Finally, we provided recommendations to the client based on the identified best practices that could be applied to the client’s program and delivered insights on quantifiable business benefits.
Impact: Client was able to achieve significant improvement in process and save costs, through adopting certain best practices followed by peers
Our recommendations were tailored to client’s exact business needs and procurement practices. This allowed the client to implement the recommended practices in a quicker turnaround time and realize significant business and cost benefits.