Tag: Cost Saving

IR2

SpendEdge Helps Identify Aluminium Suppliers for an Aircraft Manufacturing Company

Category Overview

The global aluminum market has grown rapidly due to the rise in demand from sectors such as automotive and aerospace because of its characteristics such as strength, durability, and low maintenance. Also, aluminum finds extensive applications in the packaging sector due to its ability to offer protection against light, oxygen, moisture, and bacteria.

The Procurement Pain Point

A leading aircraft manufacturing company in the US was facing challenges identifying and shortlisting suppliers in the aluminum market in terms of cost components, procurement models, and major service providers. The client wanted a deep-dive assessment of the aluminum supply market and approached SpendEdge to carry out an exhaustive procurement market intelligence study.

Procurement Insights Offered and the Outcome

To help the client understand the supply market landscape for the aluminum market, SpendEdge carried out an in-depth research process comprising of primary and secondary research methodologies supported by qualitative and quantitative data collection methods. Our analysts engaged in detailed discussions with the industry experts, procurement managers, and client consultants to understand the latest trends in the supply market and the preferred procurement models. Moreover, we collaborated our research with a vast database of proprietary resources such as industry journals and reports, periodicals and news articles, and whitepapers. This procurement market intelligence study offered the client with a better understanding of the procurement best practices and key service offerings of the suppliers.

Business Impact

In a span of four weeks, this procurement market intelligence study helped the client identify the major suppliers of aluminum. This study also helped the client with a better understanding of the cost components, procurement models, and key service offerings and assisted the aircraft manufacturer to negotiate better contractual terms on a long-term basis and strategize effectively.

This supply market intelligence study offered the client insights into the supply market landscape and crucial cost components.

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SpendEdge’s Supply Market Assessment of Lab Supplies Helps a Leading Pharma Company

Category Overview

Lab supplies refer to products that are used for research and experiments done in laboratories. The quality of lab supplies is critical while working in a laboratory because it can impact the accuracy of results and save the time taken to perform experiments. These equipment are predominantly used in sectors such as pharmaceutical, consumer, academic, government, and healthcare because of the increase in research and innovations. Moreover, the global lab supplies market growth will increase the quality of testing through the use of premium quality lab equipment.

The Procurement Pain Point

A leading pharma company was going through a shortage of lab supplies and was facing challenges in identifying suppliers in the global lab supplies market. The client wanted a better understanding of the supply market in terms of pricing and service level agreements. Despite having a widespread network, the client lacked insights into the global lab supplies market and approached SpendEdge to carry out a detailed procurement market intelligence study specific to the supply market.

Procurement Insights Offered and the Outcome

To gain strategic insights into the global lab supplies market, SpendEdge deployed a team of FTE analysts who carried out a comprehensive research process including primary and secondary research methodologies backed by qualitative and quantitative data collection methods. We engaged in detailed discussion with the industry experts, procurement managers, client consultants, and client account heads. Moreover, our category experts collaborated our research process with numerous proprietary databases including industry journals and reports, periodicals and news articles, and thought leader briefings.  This procurement market intelligence study was a multifold process comprising of information review, information validation, stakeholders insights, and data analysis. The extensive research process helped us provide deeper insights on supply market and service level agreements.

Business Impact

This procurement market intelligence study helped the pharma company with actionable insights on supply market which helped them negotiate contractual terms better. The client was able to gain insights on various cost components and pricing models. Moreover, the pharma company was able to identify major suppliers in the lab supplies market and their key service offerings.

This supply market intelligence study offered the client insights into the service level agreements and pricing models.

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IR35

Supply Market Assessment for Food Preservatives Helps a Food and Beverage Company

Category Overview

Food preservatives prevent premature decomposition of food due to the growth of microorganisms and slow down changes in color, texture, and taste that eventually make the food unsafe and inedible. They are especially important in the processing of packaged food and beverage products as they have properties that help preserve essence, texture, edibility, and nutritive value of food. While natural food preservatives are traditional and commonly used in individual households, chemical preservation entails adding a set of chemical compounds to the food products.

The Procurement Pain Point

A leading food and beverage company was finding difficulties in procuring food preservatives and identifying and shortlisting the suppliers. The client was seeking a solution in terms of supplier relationship management and cost components for better contractual terms. The food and beverage company wanted a holistic overview of the food preservatives market to understand the decisive factors on shortlisting the suppliers.

Procurement Insights Offered and the Outcome

To effectively execute the research process, SpendEdge deployed a team of analysts to carry out an in-depth primary and secondary research backed by robust qualitative and quantitative data collection methods. SpendEdge’s category experts referred to a broad range of information sources like industry databases, industry journals and reports, white papers, and company presentations to derive important insights into the market. Moreover, we engaged in detailed discussions with the industry experts, procurement managers, client consultants, and business executives. The research process helped our analysts with a better understanding of the supply landscape of the food preservatives market in terms of cost components and service level agreements. This study also helped our client with a strong and robust supplier relationship model and pricing models.

Business Impact

The food and beverage company was able to identify the major suppliers in the food preservatives market and negotiate contractual terms. This supply market intelligence study helped the client with a better and clear understanding of the supplier relationship management and crucial cost components. Moreover, this study offered the client a holistic overview of the market explaining various decisive factors price negotiation strategies, service level agreements, and supplier’s performance criteria.

This supply market intelligence study offered the client insights into the supplier relationship models and crucial cost components.

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IR35

Procurement Market Intelligence Solution Helps a Manufacturing Company

Category Overview

MRO refers to products and services (typically provided by OEMs and distributors) essential for the smooth functioning of manufacturing plants and operational facilities of organizations. The products are further classified into spare parts and consumables, and services can be segmented into equipment maintenance, storeroom management, and inventory management.

The Procurement Pain Point

One of the leading manufacturing companies wanted a sourcing partner for the maintenance, repairs, operations (MRO) services for all their manufacturing units around the world. The client was facing challenges with identifying and shortlisting suppliers, supplier profiling, and price monitoring. Furthermore, the client was also looking for procurement market intelligence solutions to streamline its sourcing and procurement processes and improve its overall position in the market.

Procurement Market Intelligence Insights Offered and the Outcome

To provide a holistic overview of the MRO services market, SpendEdge’s procurement market intelligence research experts followed a blended research methodology comprising of primary and secondary research. We deployed a team of highly experienced analysts who referred to a vast database of secondary resources including industry journals and reports, periodicals and articles, and whitepapers. They also engaged in detailed discussions and interviews with industry experts, procurement managers, client account holders, and industry consultants to gain a deeper understanding of the market.

Business Impact

This procurement market intelligence study helped the client successfully shortlist all the major suppliers in the MRO services market and offered a better understanding of supplier profiling, price monitoring, and cost components. Furthermore, this study offered a deep-dive assessment and insights into the supply market, price negotiation strategies, parameters for supplier selection and evaluation, and procurement best practices. In a span of just four weeks, the client was able to shortlist the major MRO service providers for their manufacturing units across 14 countries.

This procurement market intelligence solution helped a global manufacturing company understand the  MRO services market in terms of supplier profiling, price monitoring, and cost components.

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Supply Market Intelligence Study Helps a Leading Automotive Company

Category Overview

Outbound telemarketing is a direct marketing technique that solicits potential customers to buy the products or services via phone calls. A well-trained telemarketer can help in converting cold prospects to sales qualified leads. B2B telemarketing services comprise of activities such as lead generation, telesales, and up-selling and cross-selling activities. Omni-channel contact center-based suppliers primarily offer multi-channel services such as digital marketing and face-to-face trade marketing along with other telemarketing services.

The Procurement Pain Point

With a rapid increase in supplier competition in the outbound telemarketing services market, companies are facing the need to enhance the optimization of procurement practices. One of the leading automotive companies was running into roadblocks finding the right supplier and procurement partner. The client was facing a challenge with assessing suppliers, identifying cost-saving opportunities, and improving category management. The client approached SpendEdge knowing that we have extensive experience in providing supply market intelligence and an in-depth analysis of the category.

Procurement Insights Offered and Outcomes

To provide a clear perspective of the supply market for outbound telemarketing services, SpendEdge carried out a comprehensive research process. With the help of extensive secondary research backed by qualitative and quantitative data collection methods, our analysts gained a detailed overview of the supply market, latest trends in sourcing and procurement, pricing models, and cost-saving opportunities. We also carried out detailed discussions and engaged in interviews with the industry experts, procurement managers, and client consultants to understand the price negotiation strategies, cost-optimization levers, strategic sustainability practices, and sourcing and procurement best practices.

Business Impact

This procurement market intelligence study on outbound telemarketing services market helped the client gain a complete understanding of the supply market landscape by identifying the different areas of improvement in terms of process, output, and automation. This study on the telemarketing services also offered actionable insights that allowed the client to counter challenges in areas like price negotiation, cost-saving opportunities, indicative pricing, category risk analysis, and identifying top suppliers of interest, along with supplier selection and evaluation criteria.

This supply market intelligence study on telemarketing services offered actionable insights into the supplier cost breakup and suppliers’ performance evaluation criteria.

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IR16

Supply Market Intelligence Solution Helps a Leading Nutrition Product Manufacturing Company

The Procurement Pain Point

A leading nutrition product manufacturing company with a global presence was finding it difficult to identify the right suppliers for procuring vitamin C, which is one of the key raw materials used in most nutritional products. The client was facing challenges with supplier cost-breakup, supplier positioning, and performance evaluation process for the suppliers. To get a better understanding of the market the client approached SpendEdge for our known extensive experience in providing supply market intelligence solutions by understanding aspects of the category in terms of supply market and best practices adopted by the industry.

Procurement Insights Offered and Outcome

To gain strategic insights into the supply market landscape, SpendEdge’s team of analysts followed a blended research methodology comprising of in-depth secondary and primary research. Our research experts engaged in detailed interviews with procurement managers and industry experts to track the latest developments and procurement trends in the market. The category experts worked directly under a project manager with significant experience in conducting specific procurement studies for this category.

Business Impact

This supply market intelligence study helped the client identify the right vitamin C suppliers across the globe with better long-term contractual terms. Furthermore, it helped the client gain deep insights on supply market landscape in terms of supplier cost-breakup, supplier positioning, and price negotiation strategies. This supply market intelligence also offered a better understanding of the procurement best practices and cost reduction levers. Furthermore, the research process at SpendEdge helped the nutrition product manufacturing company gain a holistic overview of the key parameters for selecting suppliers and analyzing the supplier cost structure, profit margins, and pricing benchmarks for a better supplier engagement model.

This supply market intelligence study offered the client insights into the supplier market landscape in terms of supplier cost breakup and suppliers’ performance evaluation criteria.

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Procurement Market Intelligence Solution Helps a Leading FMCG Company

Category Overview

Media buying services involve planning, negotiating, and procuring advertising space on various media channels such as televisions, radios, newspapers, magazines, and the internet. The purpose of this process is to maximize the reach to the target audience in an economical and efficient manner to maximize ROI.

The Procurement Pain Point

A leading FMCG company had long-standing relationships with multiple media agencies. Therefore, the client wanted to consolidate its media buying and planning to ensure that it was getting the strongest capabilities and the best prices for its sizable media budget. The FMCG company wanted an in-depth understanding of the suppliers’ evaluation and selection criteria, supplier engagement models, and cost breakup and positioning. SpendEdge’s team of research analysts carried out a procurement market intelligence study to assess the supply market landscape and shortlist media agencies. This study also helped the client gain deep insights on pricing models, cost-saving opportunities, price negotiation strategies, service level agreement terms, and contract terms and conditions.

Procurement Insights Offered and the Outcome

To provide a better understanding of the supply market, our team of analysts carried out a comprehensive research process comprising of primary and secondary research. The analysts referred to a vast database of secondary resources to get a better understanding of the current market trends, sourcing and procurement best practices, and pricing models. Also, detailed discussions were carried out with industry leaders, category managers, client consultants, and procurement managers to gain a detailed overview of the latest trends in procurement, key suppliers operating in the market, and the service level agreement terms.

Business Impact

This procurement market intelligence study offered the client with a better understanding of the supply market which helped them identify the key media buying and planning service providers. This further led the client to better strategy formulation in terms of price negotiation, cost structure, sourcing and procurement best practices, and supplier engagement models.

This procurement intelligence study helps a leading FMCG company understand the global media buying and planning market in terms of supply market landscape and price negotiation strategies.

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Building Cost-effective Temporary Staffing Services by Leveraging Cost Modeling Techniques

SpendEdge’s recent cost modeling analysis of the temporary staffing services helps companies in the IT industry to gain visibility on key cost drivers, supplier cost structure, and cost saving aspects of procurement.

Understanding the cost drivers for temporary staffing services

Temporary staffing is contractual based hiring for unforeseen circumstances such as maternity leave, sick leave, peaks in workload, and staff shortage. The flexibility in managing the workforce during peak business and organizations’ need for good quality and cost-effective staffing solutions with shorter TATs is driving the growth in this market. This form of recruiting is advantageous during specific periods and provides an opportunity to the organizations to test new employees before hiring. The service providers in the market are focusing on technological innovations such as ATS and CRM systems to manage the large pool of talent base that suits the requirements of the customers. The suppliers are also bundling core recruiting services with corollary services such as testing, background checks, and contracting to save costs and offer better services to the clients. The team of research experts at SpendEdge offer a clear understanding of the cost drivers, along with valuable information on ways to facilitate judicious price negotiations.

The integration of applicant tracking system (ATS) will help automate the recruitment processes and reduce the amount of paperwork. Many recruitment agencies are adopting ATS technologies to gain a competitive advantage in the recruitment services market. The adoption of integrated ATS will streamline the resume sorting process, which will result in saving time consumed by going through every single resume. An ATS system is designed to help track candidates’ activity to ensure placement quantity, and screens resume to ensure placement quality.

Growing importance of branding

Promoting businesses on social media platforms and focusing on relationship management will help companies build a stronger foothold in the market. The easiest way to source talented candidates is by increasing brand awareness and networking activities. Many companies are adopting branding strategies to help them streamline the recruitment process by aligning its goals, values, and culture and eliminate the need to interview people who may not be the best fit for the organization. By implanting these strategies around 91% of firms saw about 10% growth in 2016, according to the latest market surveys.

Spendedge aftermarketEmergence of app-based recruitment

Technology is driving innovation across different industries and recruitment is using it to source talented candidates from varied locations. Mobile-based applications are gaining precedence over desktop or laptop-based web portals. Recruitment apps aids companies connect with job seekers virtually from anywhere in the world and establish a direct connection between job seekers and recruiters. The use of mobile-friendly landing pages, social media, and mobile applications are the most common strategies adopted by temporary staffing services.

Solutions SpendEdge offer to businesses

The latest project by SpendEdge on the temporary staffing services market indicates cost modeling to be extremely effective when developed in collaboration with suppliers. Some of the solutions offered are listed below:

  • Validate the cost model by conducting primary research with industry experts
  • Provide comprehensive overview of the cost model and key cost drivers such as increase in payroll taxes and complexity of services
  • Design cost models and price negotiation strategies to reduce the dependence on physical offices for service delivery
  • Offer information on strategic selection of suppliers, procurement best practices, cost-saving and cost reduction, and insights that led to optimization of the category spend

Read our complete case study titled – Cost Modeling Helps a Leading Conglomerate with Better Negotiation of IT Temporary Staffing Services

 

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IR3

Effective Tail Spend Management – Cost Saving Opportunities in the Pharmaceutical Industry

SpendEdge’s latest tail-spend assessment helps a pharmaceutical company achieve about 26% savings in few categories and about 57% reduction in the supplier base.

Addressing tail-spend

Optimizing resources and exploring cost reduction opportunities are the two biggest challenges faced by various organizations in the global market. By implementing different effective tail spend strategies, a company can save millions on overhead costs. The organizations in the pharmaceutical sectors are increasing their focus on improving the visibility of low-value spend and identifying new areas of process improvement and automation. Such efforts to optimize business operations will result in sustained savings and informed purchasing decisions. Additionally, increasing supply chain visibility in business processes such as sourcing, procurement, and category management will boost the profitability. The tail spend analysis engagement by SpendEdge helps pharmaceutical companies to optimize their supplier base and improve process efficiencies. The engagement develops an exhaustive assessment of the maintenance, repair, and operations (MRO) category and streamlines their sourcing process. The tail spend analysis team gathers data from client’s ERP system and analyzes the category spend and identifies cost saving opportunities.

The implementation of online and punch-out catalogs, p-cards, and improved compliance reporting will result in a tail-spend reduction. Automation in procurement and sourcing is the smartest way of controlling the tail-spend in any organization. The introduction of data analytics tools, e-procurement systems, and innovative cataloging systems will result in optimized supply chain and improve tail-spend management.

Mobile applications in MRO

Companies are installing mobile application for planning and execution of MRO tasks. These applications are designed to enhance the productivity of MRO tasks and boost customer satisfaction levels. Mobile applications provide access to real-time data on stocks, which allows vendors to evaluate stock availability and effectively manage inventories. Some of the apps available in the market provide real-time data on stocks, workflow approvals, location-based product lists, and on-the-go customer service.

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Linking different business process

Taking a grip over the tail-spend requires linking of all major business processes such as sourcing, supply management, and contract management workflows. Strategic planning and development of all processes will result in a robust spend visibility program and help identify growth prospects. Furthermore, adoption of advanced tools such as eRFX and eAuctions will offer efficient workflow and fast turnaround systems.

What solutions SpendEdge offer to businesses

The team of procurement experts at SpendEdge provide a supply market intelligence study that offers spend analysis assignments, recommendations, and process improvement guidelines. Some of the solutions offered are listed as follows:

  • Design a customized tail spend analytics framework and carry out a detailed analysis of the spend data for various categories and sub-categories
  • Develop comprehensive reports that cover the major aspects including supplier base optimization opportunities, demand aggregation opportunities, and opportunities for maverick spend reduction
  • Identify the risks due to the absence of long-term contracts and inappropriate sourcing practices
  • Offer suggestions such as gaining a supplier specific report from the data management team and updating the buying team with more info regarding the supplier
  • Recommend the client to consider bulk purchases and discounts
  • Perform an internal vendor satisfaction and rationalization survey, and sign long-term contracts and target rates

Read our complete case study titled – SpendEdge’s Tail-spend Assessment Helps a Leading Pharmaceutical Company Identify Opportunities to Save Millions

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