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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%.


Leveraging Spend Analysis Helps a Leading Pharmaceutical Products Manufacturer Improve Spend Efficiency

Overview of the Pharmaceutical Products Market

Pharmaceutical products are commonly referred to as drugs or medicines and form a fundamental component of both traditional and modern medicine. The pharmaceutical products includes companies that are responsible for the production, development, and marketing of drugs. The growth of the pharmaceutical products market can be attributed to the rise in aging population. Moreover, with the growing global middle-class population and rising per capita expenditure on medicines, the growth opportunities for pharmaceutical products has increased. Also, the regional demand for pharmaceuticals may differ based on the developments in emerging economies.

In the coming years, the global pharmaceutical products market is expected to proliferate owing to the increase in request free proposaltailored R&D and product portfolio changes to meet emerging markets’ healthcare needs.

The Business Challenge and Journey

The client, a well-known pharmaceutical products manufacturer, was looking at leveraging SpendEdge’s spend analysis solution. The client was facing several issues in analyzing their spending patterns. Also, instabilities in their supply chain increased their maverick spend and supply chain risks. The client wanted to commission a spend analysis engagement to improve their spend efficiency and optimize customer base. Additionally, they also wanted to identify and mitigate risks to overcome substantial financial losses.

To identify challenges in the supply chain functions, the spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the pharmaceutical industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

Why should you leverage spend analysis?

In today’s economy, spend analysis is gaining respect as a potent weapon in the battle to squeeze new savings out of the procurement processes of various business segments. Spend analysis enables organizations to reduce inventory, improve sourcing cycle time, and assists in long-term planning and economic forecasting. It also provides a realistic picture of future spend requirements based on the forecasted data.

Fundamental questions answered in this spend analysis study include

Pharmaceutical Products

The Result

SpendEdge’s spend analysis solution offered meaningful insights that enabled the pharmaceutical products manufacturer to identify the potential bottlenecks in the supply chain. Also, the solution enabled the client to develop a strategic sourcing model to reduce supply chain risks and establish their presence in the pharmaceutical industry. It also helped the client in analyzing and evaluating the current state of their purchasing practices and implement strategies to improve their spend efficiency. Implementing spend analysis eventually led to improvements in compliance, reduced cycle times, and uncovered maverick spend.

Future challenges and opportunities

  • Patient-centric healthcare: Advancements in technology are driving a shift towards patient-centric healthcare, as evidenced by wearable biometric devices and telemedicine. This has enabled the patients to take a more active role in any treatment plan their doctor may prescribe. It also offers several growth opportunities for companies in the pharmaceutical industry to reach the consumer through wearables and other devices.
  • The growth of biosimilars: The growth of biosimilars will present competition for biologics and represent significant savings to the consumer base. They also present new opportunities for companies in the pharmaceutical industry and those who excel at marketing biosimilars within their product range stand to gain an edge over their competitors.
  • Policy reform: Any changes to healthcare with a new presidential administration will undoubtedly have an impact on the pharmaceutical products manufacturing industry. However, the challenge for players in this sector will be to enforce changes while maintaining a steady market growth.
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Spend Analysis Solution Helps A Renowned Fashion Retailer Benchmark Their Performance Against Market Developments

Overview of the Fashion Retail Industry:

The fashion retail industry has witnessed several fascinating changes as well as challenges in the past few years; these are the primary indicators of the evolving fashion retail market. In order to harness the concomitant benefits, the challenges associated with these changes need to be addressed most efficiently and prudently. The most critical factor that determines the success of fashion retailers lies in their ability to gauge the retail industry trends in accordance with the consumer’s purchasing decisions. Also, the increase in disposable incomes, exposure to international events, and the rapid changes in the request free proposallifestyle of the global population are driving the changes in the consumer purchase behavior.

Let’s take a look at the key retail industry trends that are shaping the future of the global fashion retail market:

  • Application of technology: Rapid advancements in technology have brought about several changes in various sectors including the fashion retail segment. In a world that is rapidly adapting to the evolving technological changes, fashion retailers have to ensure that they deploy the right technology to enhance their business efficiency. Technology also has great potential for attracting consumers to retailers irrespective of the format.
  • Environmental concern: The aspect of green marketing will ramp up the retailer’s vigilance on the environmental friendliness of the company. Eco-friendliness is also a critical performance metric for retail organizations across the globe.
  • Customization of product portfolios: The success of any retail firm lies in its ability to attract consumers belonging to different socio-economic strata. This necessitates excellence in product packaging and practical structuring of product portfolios.

Though several such factors are favoring the growth of the global fashion retail sector, they also give rise to challenges related to effective spend management. To overcome such difficulties, leading players in the fashion retail industry are now leveraging spend analysis to devise and implement better sourcing strategies.

The Business Challenge and Journey:

The client, a leading player in the fashion retail industry with several international business units, was looking at developing robust spend analysis capabilities. Not surprisingly, the fashion retailer found itself battling several issues that arise while employing acquisitions and mergers as a growth strategy.

Moreover, the company’s sourcing executives recognized the tremendous scope for streamlining their processes to achieve cost savings in indirect and MRP spend. As such, they were looking at reducing their maverick spend and increase their net income. Also, the client was looking at setting industry-specific benchmarks to assess their performance against the market developments.

To identify challenges in the supply chain activities, the spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the fashion retail industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

Why should you leverage spend analysis?

SpendEdge’s spend analysis offers end-to-end solutions that reduce the overall purchasing costs and enhance the value of supplier relationships. Also, the spend analysis data will help organizations in improving their business processes to increase the overall efficiency.

Spend management acts a guide for firms to devise standardized procurement processes. Therefore, it’s essential for every organization to leverage spend analysis and gain a better handle on its supply chain processes. Furthermore, implementing the best practices in spend management provides an extra boost to increase the company’s profit margins.

Fundamental questions answered in this spend analysis study include:

Fashion retail

The Result:

SpendEdge’s spend analysis solutions offered relevant insights that helped the client to develop robust sourcing strategies and cut down on maverick spend. It also assisted them in optimizing their working capital by identifying categories and suppliers with lower-than-policy-level payment terms that offer a great starting point for freeing working capital. Moreover, spend analysis solution provided valuable insights that helped the client in identifying price arbitrages. Our solution also assisted them to benchmark their performance against market developments to ensure that they perform well and keep up with the market developments.

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Biggest Challenges Faced by Procurement Professionals in Indirect Spend Management

Most companies often focus their efforts on direct spend categories and place a low level of importance on indirect spend. However, indirect spend can make up a high proportion of third-party spend in most companies. Often overlooked, indirect spend management is gaining attention due to its ability to derive more value from their supplier spend and further increase savings. Indirect spend management is not so straightforward and easy. Managing IT, MRO, logistics, utility, and travel requires a different kind of skillset and expertise from the procurement teams. If procurement teams are able to manage and take control over the indirectSE_Demo2 spend effectively, they can create more savings opportunities. So what are the barriers procurement professionals need to overcome to unlock new savings opportunities?

Controlling maverick spends

Maverick spends are purchases made outside of agreed contracts. Companies make many purchases out of their agreed contracts due to various reasons and circumstances. However, it can be detrimental to the organization as no contract means no legal protection and it can also impact the profit and contract fulfillment. Unmanaged spends can account for billions of dollars of ineffective and inefficient purchases in a large enterprise. Additionally, it also makes the organization vulnerable to procurement frauds. A major problem faced by the procurement professionals is the implementation of control measures to eliminate such maverick spends. Organizations struggle to regulate such spends as employees usually try to be efficient by using a ‘just get things done’ attitude. Also, procurement professionals often bypass the contracting system as it is laborious and time-consuming. At an age where agility is necessary, they cannot afford to waste time in excessive documentation. Additionally, sometimes employees can feel that they can find a better deal elsewhere than in the contract offers. It is essential to review HR policies and educate stakeholders of the detriments of unmanaged spend. A review of the P2P process and a proper spend analysis are also essential to put a stop to such maverick spends.

Lack of centralized control

A common misconception outsiders have about the organization is that it sees the company as a single entity. The truth is far from that, as they function with multiple departments with decentralized control. The problem with such decentralized control is that, when implementing indirect spend management, professionals often lack the knowledge of the scale of diversity within their organization. Each department is provided with their own budgets, and have measures and regulations to spend the budget where they need it. This again gives rise to maverick spends and purchases that are not centralized. Therefore, it becomes problematic to assess who is spending on what. To get on top of the indirect spend management, organizations should centralize their purchasing operations. It will not only help achieve economies of scale but also allow greater scrutiny of suppliers and their contracts. Additionally, it eliminates the practices of offering contracts based on each department’s convenience and ensures qualified suppliers are selected. Apart from its contribution in cost-savings, it also affects the non-price factors such as risk management, CSR initiatives, and supplier diversity.

To tackle the challenges arising out of indirect spend management, companies have turned towards automated procure-to-pay (P2P) processes. Such processes eliminate process errors, increase visibility of payments, and provide better control over indirect spend. Additionally, eProcurement, eInvoicing, AP, order lifecycle management, electronic payments, and supplier management are some tools used by the organization to increase visibility and control over their indirect spend management.

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Category Market Intelligence Assists a Prominent Consumer Goods Manufacturer to Position their Products Effectively

Overview of the Retail Industry

The global retail industry is marked by rising GDP growth, burgeoning population, greater disposable income, and increasing consumer spending. The retail industry at large comprises of establishments who are involved in selling merchandise for household consumption. With the rising middle-class population, the Asia-Pacific region is a market leader in this  space, representing 35% of the global market. The recent shift toward a consumer-centric environment will contribute to the growth of the retail space as consumers’ are preferring online shopping over conventional in-store shopping. Although the consumer goods space will witness promising growth owing to the growth of e-commerce platforms, many other factors will influence this industry’s growth over the next couple of years:

Adhering to changing consumer demands: Today, with the altering preferences of the consumers, the consumer goods space needs to refine their existing models and shift toward healthier and sustainable options. The fluctuations in demand for products among the consumers are forcing consumer goods manufacturers to introduce new production techniques and reduce time-to-market for the products offered. Also, with the economic volatility, manufacturers are facing pressures to offer low-cost consumer goods to meet their demands.

Shrinking operational margins: In this world of relentless competition, leading consumer goods manufacturers are facing challenges while offering high-quality products and finding innovative ways to curtail their additional expenditure. Also, businesses should consider the factors such as oil prices and their effect on transportation costs to meet their operational expenses.

Compliance pressures: The global regulations are dynamic, and with the changing regulations imposed by the government, companies are facing immense pressure to mitigate operational risks and manage non-conformances.

To address such challenges and increase their market presence, leading procurement organizations are utilizing category market intelligence solutions.

The Business Challenge and Journey

A prominent consumer goods manufacturer, offering a wide array of products, wanted to understand the market landscape and gain a detailed description of the market’s performance. The client wanted to understand the competitive landscape and assess current market trends, developments, and the potential drivers and opportunities. With the help of the category market intelligence solution, the client wanted to gain an overview of the market players and the supply chain and information related to the supplier’s pricing, cost structure, and price model analysis. The primary concern for the client was to assess the potential bottlenecks and compliance and regulatory issues in the consumer goods space.

To profile the right target market and cater to the business requirements, SpendEdge’s category market intelligence experts personalized a comprehensive research methodology. The extensive research comprised of qualitative and quantitative research techniques with the prominent players in the consumer goods space.

During the course of the category market intelligence engagement, the client was offered a SWOT analysis to identify the barriers, opportunities, and market trends. The solution also helped the client achieve operational efficiency while emphasizing on technologies to support their product innovations. Moreover, the solution assisted the consumer goods manufacturer to regulate costs associated with compliance and better manage their relationship with the suppliers.

Fundamental questions answered in this category market intelligence study include:

IR- category market intelligence

The Result:

The category market intelligence solution offered by SpendEdge shed light on the fundamental drivers and the supply chain to address the supplier diversity for the products offered in the market. The engagement also focused on the potential ways to streamline their operations through a quick win analysis strategy. The engagement also brought into limelight the procurement best practices that assisted the client in refining their product offerings by gaining adequate buyer insights.

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5 Surprising Uses of Spend Analytics Data

Organizations are working hard to increase their savings on their hard-earned dollars. The process of savings starts by analyzing when and where you are spending all your money. Analyzing your spends across different categories, processes, and suppliers give you a pretty fair idea where you, as an organization can improve the overall savings. A consolidated and accurate spend data collected fromSE_Demo2 multiple sources allows procurement teams to perform spend analysis which can provide insights on overall spends and explore areas where savings is possible. So the question arises, once you have the spend analysis data, how can it be useful to the organization?

#1- Increase Savings

In order to maintain profitability, organizations are stressing their procurement teams to deliver savings. Profitability increases when prices are increased or cost-base is reduced. Since product prices are more dependent on the market, companies are focusing on cutting down costs to drive the company profits. Spend analysis can help identify savings opportunities that usually aren’t so obvious.

#2 – Manage Maverick Spends

Maverick spends that does not comply with the rules set by company’s pre-established procurement policy can cost the company money in the long run. Some purchases have to be made urgently or may be insignificant to merit the time and energy to complete the process. Usually, such spends are forgotten in the long run and continue to bleed money for the organization. Spend analysis can help prevent such maverick spends by identifying anomalies such as non-compliant purchases with the supplier, spends with non-contracted vendors, and spends across multiple suppliers without any contract.

#3 – Improving Supplier Relationship

Your suppliers will have a good idea on your spend with them across different items than you. This is because your vendor values customer relationship. However, spend analysis provides you detailed data on spends and expenses with every vendor. It helps an organization to identify suppliers that are crucial to the organization so that a better supplier relationship can be maintained. Additionally, it can also help companies to rationalize their supplier base.

#4 – Managing Risks

It is not uncommon that an organization usually deals with a single vendor over a number of years. However, being over-reliant on a single vendor can become risky, if they fail to deliver as promised or are out of business. The organization can be severely handicapped if such instances occur. Spend analysis data monitors what commodities and components are bought from each supplier which helps them to know financial, legal, operational, and geographical risk exposure for each supplier.

#5 – Ensure Compliance

One of the most complicated task for a procurement manager is taking care of compliance issues. By analyzing historical spend of the organization, issues around contract compliance can be disclosed. Increased visibility into spend data can thereby improve contract and regulatory compliance.

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Cost Benefit Analysis for An Acrylic Paint Manufacturer

Category Overview

Over the past few years, the growth of the chemical industry has declined due to the large inventory sizing by manufacturers and deteriorating industrial production, especially in the acrylic paint manufacturing space. As a result, leading firms operating in the acrylic paint manufacturing space are forced to provide more dynamic and robust products while being cost-effective. Cost benefit analysis helps players in the acrylic paint manufacturing space to reduce expenditures and meet the rising demand of the customers.request free proposal

With years offering experience in offering a wide array of cost benefit analysis solutions, SpendEdge helps acrylic paint manufacturers to gain a comprehensive understanding of the cost structure of their supply chain activities. These solutions also help client formulate superior negotiation strategies with suppliers to achieve a competitive edge over the peers operating in the acrylic paint manufacturing space.

The Procurement Pain Point and Insights Offered

A global acrylic paint manufacturer was facing predicaments in recognizing the sourcing and procurement pricing elements and its influence on the overall cost across the supply chain. Also, the client was facing difficulties in ensuring low-cost raw material sourcing. As a result, they wanted to devise a low-cost mix model to cut down on their maverick spends.

SpendEdge’s cost benefit analysis experts personalized a comprehensive research methodology, which involved primary and secondary research methodologies coupled with qualitative and quantitative data collection techniques to cater to the client’s business issue.

This cost benefit analysis engagement helped the acrylic paint manufacturing client to measure the impact of each cost driver on the overall spends and predicted the cost movements across the supply chain. Additionally, the robust, low-cost mix model recommended by SpendEdge enabled the client to cut down on their maverick spends.

Questions answered in this cost benefit analysis study include

Business Outcome

The acrylic paint manufacturing client was able to gain more profound insights into the cost structure of the procurement processes across the supply chain. Additionally, the client was provided with strategic recommendations on devising superior negotiation strategies with the suppliers in this industry space.

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How AI is Driving Innovation in Spend Analysis

Numerous cost-saving opportunities are lying across the company’s supply chain. For many procurement managers, the cost incurred by the organization are often inevitable. Also, they cannot quite figure out which expenses are avoidable and which costs are contributing to the business success. That is the exact reason why procurement and sourcing managers are increasing their dependency on spend analysis to collect, classify, and analyze expenditure data in order to increase procurement efficiency and cost-savings opportunity. Currently, all the major organizations are using spend analysis to improve efficiency, reduce maverick spend, and increase cost-savings. Companies have to look out for innovative tools and practices in spend analysis to increase their competitiveness and improve their cost structure. The rise of artificial intelligence (AI) is helping procurement organizations gain new insights to shape effective strategy with spend analytics approaches.SE_Demo2

Strategic Sourcing

Companies resort to using historical data during their supplier selection process. However, using historical data alone would not be the best option to base a strategic sourcing decision. Using latest machine learning methods, procurement teams can run a spend analysis before, during, and after a sourcing event to evaluate supplier performance. With the use of AI, the organization can view produce demand breakdown, market analysis, cost component analysis, and supplier performance analysis even before a sourcing event begins. Extensive knowledge about supplier and market condition enables procurement teams to analyze spend patterns with selected suppliers.

Supply Management

Selecting the right supplier is just one of the process in the supply chain. The supplier performance has to be constantly monitored and evaluated to ensure that the relationship is adding value to the company. Spend analysis program focuses on analyzing the spends against suppliers in terms of individual suppliers, purchase volume, mode of shipment, and mode of payment. Since all data points are not expressed in absolute terms, with some in the form of semi-structured data, procurement teams need to turn to AI for procurement analytics needs. For instance, instead of manually going through purchase orders and invoices, AI and procurement analytics can help them determine inventory overhead costs and predict stockouts by looking at purchase orders and invoices.

Risk Management

Procurement organizations are continually monitoring their strategies to increase their efficiency. However, not everything goes as per plan. So, the strategic management process needs to incorporate an additional factor, risk. All modern analytical engines can accurately provide insight into past performance and predict future outcomes. However, what sets AI apart from traditional data analytics is its ability to include external factors to predict risks. Leading analytics platform can perform analysis by integrating factors such as market prices, commodity data feeds, and numerous complex data sets including financial risk scores, CSR scores, and third-party data sources related to risk. With such analysis, procurement teams can perform a robust spend analysis to ascertain spending limit with each supplier factoring in risk elements.

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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.

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4 Pillars of Procurement Excellence

In a bid to improve a company’s competitiveness and profitability, numerous companies are chasing after procurement excellence. But it all boils down to one simple question, how do you define procurement excellence? Different organizations and professionals have differing views on what comprises procurement excellence, but we all can agree that procurement excellence stems from an organization’s ability to demonstrate excellence and maturity in the following areas:SE_Demo2

Spend Analysis
The importance of spend data collection and power of analytics can be exhibited by a quote from a data analytics consultant, “Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.” The professionals can only optimize spends if they are keeping track of it and analyzing it. A proper spend analysis can provide a streamlined view into spend management lifecycle, spend data classification, spend category management, spend visibility and analysis, and purchasing-team knowledge management. Such information equips supply professionals with in-depth intelligence to make informed procurement related decisions.

Strategic Sourcing
Strategic sourcing can have a significant influence in determining the TCO along with quality and performance of supply chain. Strategic sourcing continuously re-evaluates and improves the purchasing activities of a company by examining supplier relationships, leveraging organizational spend, and sharing best practices across the organization.

Contract Management
Procurement professionals need to handle contract management with utmost care to ensure optimal service delivery, supplier relationship management, profitability, and compliance. An efficient contract management solution accelerates performance throughout the contract lifecycle by monitoring adherence, SLA’s and KPI’s, contract negotiation, and analyzing benefits that accrue from the contract.

Supplier Relationship Management
The companies that are successful and innovative are the ones who view suppliers as partners and co-create value to improve the supply chain and product performance constantly. Companies that continually measures, analyzes, and manages supplier performance can enhance their competitiveness, operating efficiency, and cost structures.  For instance, Toyota with a deep belief in supplier development and collaboration, have leveraged some of their internal best practices in terms of manufacturing and lean to improve supplier’s production systems dramatically. As a result, it comes as no surprise that Toyota is one of the leading automobile company in the world with best-in-class procurement practices.

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