industrial and manufacturing Archives

Industrial Automation: What the Future Holds

Industrial automation in manufacturing companies entails the use of intelligent machinery in manufacturing plants. Industrial automation systems ensure that processes are completed within the shortest span of time and with minimal human intervention. This requires different control systems that facilitate the operating equipment to execute allotted tasks at the right speed, precision, and endurance on their own. Following the technological advancements in the last couple of decades, small businesses can now afford to adopt industrial automation systems and improve their operational efficiency. Some of the key applications of industrial automation include:

Quality control and inspection
Food and beverage processing
Planning and decision making
Packaging and material handling
Metal fabrication; machining, welding, cutting, and cladding

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Spendedge’s Supplier Risk Analysis Helps a Renowned Industrial Equipment Supplier Mitigate Supply Disruptions

Overview of the Manufacturing Industry

Amid a severe recession, the manufacturing sector is making outsized contributions to research and development to improve process innovation and mitigate risks in the supply chain process. Leading players in the manufacturing sector are focusing on realigning their business models to go on par with the fluctuating market dynamics and meet top-line growth objectives. The continuing shift toward increasing customer and supplier collaboration is compelling manufacturers to understand the needs of their end-users, strengthen customer relationships, and add value to their products. Since the demand for manufacturing products is growing at a slow pace; renowned industrial equipment suppliers are increasing their focus on developing advanced manufacturing capabilities to sustain their competitive position in the market.

Although the industrial equipment supplier space is witnessing a promising growth with the adoption of digital capabilities, several factors may influence the growth of the market.

The presence of new digital technologies: Today, innovations and product development is moving at a lightning pace and organizations need to keep up with the technological advances to stay relevant in the industrial equipment space. As consumers are focusing on gaining adequate product quality, leading businesses need to be more structured in managing innovations while maintaining consistency in their product offerings.
Rising competition: The industrial equipment space is sophisticated with the presence of numerous competitors offering a wide array of product offerings. The threat of new entrants is forcing businesses to stay abreast of the competition by emphasizing on their production capabilities.

Apart from these conventional factors, stringent government regulations and compliance issues may influence the growth of the industrial equipment space. To counter these challenges in an efficient manner and streamline their product offerings, organizations are leveraging the need for a supplier risk analysis solution.

The Business Challenge and Our Journey

The client, a prominent industrial equipment supplier wanted to identify, assess, and mitigate supplier-related risks to reduce vulnerability and ensure continuity in the supply chain process. With the help of a supplier risk analysis solution, the client wanted to understand the potential risks related to supplier bankruptcies, capacity shortage, and supply of low-quality products. The industrial equipment supplier also wanted to assess the customer satisfaction levels to reduce the production delays and improve the corporate goodwill. The primary objective of the client was to take effective measures to prevent supply chain disruptions and make more timely and accurate business decisions.

To proactively predict the risks and develop robust mitigation strategies, the procurement experts at SpendEdge carried out extensive research methodology. The research methodology comprised of interviews and discussions with the prominent industry leaders in the industrial equipment space. Furthermore, the experts also compiled information across a wide array of reliable sources such as trade shows, paid industry databases, and company presentations to ensure the continuity in the supply chain process in the industrial equipment space.

The supplier risk analysis solution offered by SpendEdge assisted the client to bid for the most lucrative suppliers and gain relevant insights into the cost-effective solution for risk analysis. The solution also assisted the client in developing awareness of the inherent risks and prioritizing risk considerations over time. The supplier risk analysis solution also sought ways for the industrial equipment supplier to categorize the risks based on their severity and develop a robust mitigation plan to successfully deliver the products to the customers.

Fundamental questions answered in this supplier risk analysis include:

Sp- supplier risk analysis

The Results

During the course of the supplier risk analysis engagement, the industrial equipment supplier was able to streamline their supply chain process right from the manufacturing point to the delivery of products. The solution also offered a financial restructuring of the overall supply chain to adequately allocate resources to meet the business requirements.

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SpendEdge’s Strategic Sourcing Analysis Helps an Industrial Equipment Manufacturer Transform Procurement Function

Overview of the Industrial Equipment Manufacturing

The industrial equipment manufacturing industry is responsible for the fabrication of products intended for industrial use from raw materials around the globe. It is the output of this industry which has made further mass manufacturing possible in most other industries. Industrial equipment is typically grouped into seven different segments. Construction, agricultural, and mining machinery; industrial machinery; and service and commercial machinery are all special-purpose machinery designed for a specific industry. One of the key trends in the industry is the rising use of high-tech production techniques. As a result, companies are introducing advanced technologies in response to pressure from domestic and foreign competitors. Computers, robotics, and programmable equipment are common, resulting in increased productivity due to improved efficiency and a decreased requirement for unskilled labor.

However, a few factors are expected to hinder the growth of the industrial equipment manufacturing industry. These factors include:

The rise of the Internet of Things (IoT): The IoT represents the ever-growing network of physical objects embedded with sensors and communication technology, letting them exchange data with users and manufacturers. Internet-connected machinery and equipment are having a tremendous impact on industrial manufacturing. Assets that can communicate performance data to operators in real-time provide data that guarantees maximum uptime reliability and prevents protracted outages.
The economic growth of developing markets: The demand for manufactured goods is rising fast as countries like India, China, and Brazil are experiencing strong economic growth. As a result, companies are raring to provide superior products and services while being cost-effective.

These factors are compelling industrial equipment manufacturers to leverage the use of strategic sourcing analysis solutions. Strategic sourcing analysis solutions help companies in generating optimal sourcing and procurement method and measurement tools to drive savings. Additionally, these solutions assist firms operating in the industrial equipment manufacturing sector to centralize the suppliers’ responses and compare the responses within the client’s system.

The Business Challenge and Journey

The client, a renowned manufacturer of industrial equipment with business operations spread across the globe, wanted to develop robust sourcing analysis capabilities across categories and geographies to enhance their visibility into spending and drive higher savings. Additionally, the client wanted to implement procurement automation technologies to streamline its sourcing processes, increase savings, and boost transparency.

The strategic sourcing analysis experts at SpendEdge tailored an integrated research approach to help the client improve their overall procurement process. The integrated approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures.

With the help of SpendEdge’s strategic sourcing engagement, the industrial equipment manufacturing client deployed a comprehensive technology solution that integrated the end-to-end procurement process from source to contract — one that connected the results of sourcing events to the resulting buyer and supplier contracts and reflected the negotiated contract terms. Additionally, the client not only developed a best-practice methodology to reduce sourcing cycle time by also created a long-term interrogable repository of supplier responses and sourcing activities across business units.

Key questions answered in this strategic sourcing analysis engagement

The Results

The industrial equipment manufacturing client was able to take advantage of new opportunities, unforeseen circumstances, and changing market factors with a rapid response and in turn drove savings. Additionally, due to the ease of use and a single view of all procurement activities, the client reported substantial efficiency throughout their processes.

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Procurement Best Practices Study for A Leading Mining Equipment Manufacturer

Category Overview

Over the years, players across the mining industry have started witnessing daunting challenges in terms of water scarcity, harsh climates, and rising energy costs which has consequently affected the growth prospects of the mining equipment manufacturers. As a result of these challenges, firms operating in the mining equipment manufacturing space have started advocating the need for robust procurement best practices solutions to gain a comprehensive understanding of their sourcing and procurement activities and increase their overall profitability across office locations.

With years of expertise in providing a wide array of similar solutions, SpendEdge’s procurement best practices experts assists firms operating in the mining equipment manufacturing space to gain a competitive edge over the peers operating in the industry space by implement best-in-class sourcing and procurement strategies.

The Procurement Pain Point and Insights Offered

A renowned mining equipment manufacturing client was facing predicaments in gaining a stronger foothold in the industry space against their peers. As a result, the client wanted to identify the sourcing and procurement best practices adopted by their peers. They also wanted to identify the key suppliers operating in the mining equipment manufacturing space.

To cater to the specific predicaments faced by the mining equipment manufacturing client, the procurement best practices experts at SpendEdge personalized an integrated research methodology, which included primary and secondary research coupled with quantitative and qualitative data collection methodologies.

During the course of the procurement best practices engagement, the mining equipment manufacturing client gained actionable insights into the functional and commercial drivers and decisions that impacted the profitability of the firm. Additionally, the client was able to categorize the peer group companies and key suppliers operating in the industry space. This helped them understand the accordingly implement sourcing and procurement best practices and formulate superior sourcing strategies.

Fundamental questions answered in this procurement best practices study include

Business Outcome

The procurement best practices engagement helped the mining equipment manufacturing client instrument best-in-class sourcing and procurement strategies across the supply chain. This helped them identify and cut down the inefficient and unproductive processes and consequently helping them improve profits.

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Category Management Solution Helps a Leading Luxury Products Manufacturer Implement Procurement Best Practices

Category Overview

These days, the customer’s shopping behavior is changing and are shifting toward luxury products due to the recent increase in disposable income across the globe. Factors such as the superior quality, value, and durability associated with these luxury products are further compelling the customers to purchase these products. As a result, players operating in the luxury products manufacturing space have started implementing strategies to gain traction and increase traffic in this ever-changing dynamic competitive setting. Also, to understand the spend patterns across the supply chain, leading organizations in the luxury products manufacturing space have started adopting category management solutions. These solutions help clients improve supplier performance, mitigate supplier risks, and administer innovations.

With years of expertise in offering a wide array of similar solutions, SpendEdge assists players operating in the luxury products manufacturing space to gain better visibility into the procurement process thereby, allowing the category managers to increase their focus on decreasing the overall procurement lead time.

The Procurement Pain Point and Insights Offered

A leading luxury products manufacturing client was facing predicaments in assessing the customer data which would help them make informed business decisions. As a result, they wanted to develop a strategic procurement intelligence report to gauge the customer data efficiently. Additionally, the client also wanted to implement procurement best practices and gain strategic insights into the suppliers’ pricing and cost structure.

To address the specific predicaments faced by the luxury products manufacturing client and assist them in implementing procurement best practices across the supply chain, the category management specialists at SpendEdge tailored a unified research methodology, which involved primary and secondary research coupled with quantitative and qualitative data collection methodologies. The category management solutions offered by SpendEdge helped the luxury products manufacturing client gain a deeper understanding of the supplier’s pricing and cost structure across the supply chain. This helped them devise superior sourcing and negotiation strategies with their suppliers.

Fundamental questions answered in this category management study include

Business Outcome

This category management engagement helped the luxury products manufacturing client improve their decision making on the supplier selection. Additionally, the client was able to implement procurement best practices and reduce maverick spends.

To know more about our category management solutions

Procurement Best Practices Study for An Olefin Fabric Manufacturer

Category Overview

Over the years, the growth of the global textile industry is mainly dependent on the continuing major investment in innovation and invention. However, the rising demand for superior product and service offerings at a cost-effective price are one of the critical challenges faced by the manufacturers of olefin fabric across the textile industry. As a result, players operating in the olefin fabric manufacturing space are leverage the use of procurement best practices solutions to gain a comprehensive understanding of their sourcing and procurement activities to improve their overall profitability and formulate better negotiation strategies with the suppliers.

With years of expertise in providing a wide array of procurement best practices solutions, SpendEdge aids olefin fabric manufacturers to implement best-in-class sourcing and procurement strategies and consequently gain a competitive edge over the peers operating in the industry space.

The Procurement Pain Point and Insights Offered

A renowned olefin fabric manufacturing client was facing predicaments in assessing their sourcing and procurement best practices against their peers. Additionally, the client was facing difficulties in identifying the key suppliers operating in the olefin fabric manufacturing space.

SpendEdge’s procurement best practices experts personalized a blended research methodology, which involved primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the business requirements of the client.

The procurement best practices engagement helped the olefin fabric manufacturing client identify the sourcing and procurement best practices adopted the peers in the industry space. Additionally, the client was provided with a list of suppliers operating in the manufacturing space. This helped them select the best supplier.

Fundamental questions answered in this procurement best practices study include

Business Outcome

The olefin fabric manufacturing client was able to adopt best-in-class sourcing and procurement strategies across the supply chain. This helped them reduce their sourcing spends and reduce maverick spends across the supply chain.

To know more about our procurement best practices solutions for an olefin fabric manufacturer

Supply Chain Risk Assessment Helps a Renowned Waste Disposal Equipment Manufacturer Address Flaws in their Supply Chain

Category Overview

Globally, the manufacturing industry is witnessing the entry of numerous new market players, and key stakeholders are looking for effective ways to curtail additional expenses related to supply chain activities to boost their profit margins. Also, due to globalization, outsourcing, and supply-base rationalization, leading businesses in the waste disposal equipment space have started looking for promising solutions to identify and mitigate supply chain risks. To understand and devise means to tackle supply chain challenges in the waste disposal equipment space, renowned businesses in the manufacturing industry are advocating the need for a robust risk management solution. Risk management helps businesses gain better visibility into the downstream and upstream operations and allows suppliers to curtail logistics costs.

To improve profitability and enhance the overall product quality, renowned businesses in the waste disposal equipment space are approaching companies like SpendEdge. SpendEdge’s risk management solution assists businesses to foresee potential issues in terms of cost volatility and material shortages and devise effective strategies to automate their supply chain process. Moreover, the risk management solution also assists companies to collect, analyze, and manage supplier information and mitigate supply chain disruptions.

The Procurement Pain Points and Insights Offered

A renowned waste disposal equipment manufacturer was facing certain predicaments understanding their supply chain structure and identifying flaws in their supply chain. The client wanted to gain better visibility into their supply chain process and devise potential ways to mitigate any disruptions in the space. With the help of SpendEdge’s risk management solution, the client wanted to identify the key performance indicators to save logistics costs and improve product quality.

With an aim to gain better visibility into the waste disposal equipment space, the risk management experts at SpendEdge tailored an integrated approach comprising of quantitative and qualitative data collection methodologies. Also, the experts further collated information across a wide array of proprietary sources to mitigate risks and streamline their supply chain activities.

With the help of the risk management solution offered by SpendEdge, the waste disposal equipment manufacturer was able to develop a risk mitigation strategy to meet the procurement standards of the company. The risk management solution also assisted the client in fulfilling the regulatory requirements and improving customer satisfaction.

Fundamental questions answered in this supply chain risk assessment include

SP- waste disposal

The Business Outcome

The risk management solution offered by SpendEdge helped the client gain real-time insights on the production and delivery capabilities. The engagement also assisted the client to improve operational objectives while meeting the customers’ requirements.

To know more about our supply chain risk assessment for the manufacturing industry

Spend Analysis Helps a Leading Construction Equipment Manufacturer Identify Key Areas of Spend

Category Overview

Today, the construction industry is witnessing a transition to a more consumer and service focused business model to meet the rising demand for construction activities among the target audiences. On the contrary, with the recent economic instability, leading businesses in the construction equipment space are relying on spend analysis solutions to analyze the spending patterns and curtail additional costs. In the construction equipment space, spend analysis solution delivers insights into the spend data and helps organizations identify opportunities to generate better ROI. Also, organizations can address the challenges pertaining to the maverick spend and effectively manage supplier relationship. Spend analysis can also address concerns related to savings, varying prices, and the purchasing overlaps of the products.

To gain better visibility into the spending patterns, renowned businesses in the construction equipment manufacturing space are approaching companies like SpendEdge. With years of expertise in offering a plethora of solutions, SpendEdge’s spend analysis solution helps businesses gain strategic insights into the consumers’ buying behavior and make better and more confident buying decisions.

The Procurement Pain Points and Insights Offered

A renowned construction equipment manufacturer was facing certain predicaments understanding operational ineffectiveness. The construction equipment manufacturer wanted to identify the sources for maverick spend and assess the key areas of spend. The client also wanted to seek ways to curtail additional procurement costs and improve process efficiencies. Moreover, through an effective spend analysis solution, the client wanted to gain insights to save money and make better-informed sourcing and supplier decisions.

The spend analysis experts at SpendEdge tailored an integrated research methodology comprising qualitative and quantitative data collection methodologies. Also, the experts collated information from various proprietary sources to gain more visibility into the spend and ensure better ROI.

With the help of the spend analysis solution, the construction equipment manufacturer was able to reduce maverick spend, improve savings, and scale operational efficiency. Furthermore, the spend analysis solution assisted the client to improve compliance, reduce cycle times, and uncover maverick spend.

Fundamental questions answered in this spend analysis engagement include

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The Business Outcome

The spend analysis solution offered by SpendEdge helped the client gain real-time insights on the organization’s procurement activities and expenditures. Also, the construction equipment manufacturer was able to identify areas for cost reduction and process improvement. Furthermore, the client was able to procure goods and services at comparatively lower costs.

To know more about our spend analysis solutions for the manufacturing industry

Top 5 Suppliers in the Stainless Steel Market

Stainless steel is a highly versatile metal which finds extensive applications in industrial manufacturing and household appliances. Industrial manufacturers use stainless steel in metal products, mechanical engineering, construction, vehicles and spares, and electric machinery. The material’s versatility in its usage has resulted in the constant growth of this market with a CAGR of above 4% for the next couple of years. Stainless steel suppliers are looking for ways to digitize the supply chain and adopt sustainability practices to sustain themselves in the highly competitive market space. Here are the top stainless steel suppliers driving the competition in this market:

ACERINOX

ACERINOX is the world’s largest stainless steel supplier with an annual output of 3.5 million MT. They are headquartered in Madrid, Spain with operations spread across the world in parts of Europe, Malaysia, South Africa, USA, Argentina, and Chile. From its conception, it has carried out a continuous program of investments, with the development of technological innovations that have constituted an exemplary landmark in the technology of stainless steel.

POSCO

POSCO is the fifth largest steelmaker in the world headquartered in Pohang, South Korea. The stainless steel supplier serves high profile client such as Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co., and LG Electronics. In 2014, Posco & Chongqing Iron & Steel signed an agreement for $3.3 bn investment.

HBIS Group Co. Ltd

HBIS Group Co. Ltd is one of China’s largest iron and steel manufacturer with annual revenues of over US$ 40 billion. In 2016, the report on the comprehensive competitiveness of Chinese iron and steel enterprises categorized the HBIS Group to be “highly competitive”. They are highly focused on sustainable steelmaking practices with one of their plants being recognized as the cleanest steel plant in the world.

Tsingshan Holding Group Co. Ltd

Tsingshan Holding Group Co., Ltd., founded in 1992, offers stainless steel and related products, which are used in fields such as machinery, electric power, petroleum, chemical industry, aeronautics and astronautics, automobile, shipbuilding, food, pharmacy, and decoration. Operating with over 20,000 employees, this stainless steel supplier generates revenues of over US$ 15 billion.

Taiyuan Iron and Steel (Group) Co. Ltd. (TISCO)

Taiyuan Iron and Steel (Group) Co. Ltd. (TISCO) is a Chinese steelmaker with a production volume of 10.25 million metric tons, out of which 3.1 million MT is stainless steel. After starting its first phase of stainless steel production in 1952, the company has now achieved great success in its stainless steel business.
Read more about the top stainless steel supplier along with supply market landscape, pricing, and procurement insights in SpendEdge’s upcoming report on the global stainless steel market.

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Supply Chain Analysis for a Material Handling Client Helps Improve Forecasting Capabilities

Category Overview

In every material handling space, supply chain plays a pivotal role in the movement, protection, storage, and control of materials and products. From the initial stage of receiving the necessary raw materials to the final delivery of finished products, supply chain ensures a seamless and agile movement of products in an efficient and cost-effective manner. Also, with the relentless growth in the technology, leading material handling equipment manufacturers are leveraging the use of supply chain analysis to deliver better accuracy in their activities. Supply chain analysis also helps companies keep a real-time track of supply chain activities at every point, thereby creating a flexibility into the movement and direction of the products.

With years of expertise in offering a plethora of services, SpendEdge’s supply chain specialists helped the client determine effective ways to handle the products, in turn, shortening lead time, optimizing cost, and curtailing inefficiencies. Through an effective supply chain analysis, the material handling client was able to improve customer service, reduce inventory levels, and ultimately lower the overall handling costs. Furthermore, the engagement helped the client effectively allocate resources, improve customer delivery, and streamline after-sales support and services.

The Procurement Pain Point and Insights Offered

A renowned material handling client wanted to identify the inefficiencies in their supply chain and devise effective strategies to make it more cost-effective and efficient. Furthermore, the client wanted to forecast the bottlenecks and make it easier to speed up the process.

To forecast accurately and increase the bottom line, SpendEdge’s supply chain specialists carried out an extensive research comprising of interviews and discussions with leading stakeholders in the material handling space. The specialists further compiled information from various proprietary sources such as paid industry databases, company presentations, and newsletters in the material handling space.

After gaining a comprehensive information into the supply chain activities, the material handling client was able to improve supply chain visibility and drive call to action. The client further leveraged the use of agile and scalable tools to improve forecasting ability, reduce lost sales, and reduce cost reduction and cost avoidance.

Key questions answered in this supply chain analysis include

SpendEdge- supply chain analysis

Business Outcome

Through a robust supply chain analysis, the client gained a best in class visualization ability of the supply chain activities. The engagement helped the client effectively address the pain points and gain full purchase order visibility. Moreover, the client also identified the prevailing pricing inconsistencies during delivery and was able evaluate the overall vendor and buyer performance.

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Overview of the Manufacturing Industry

The Business Challenge and Our Journey

Fundamental questions answered in this supplier risk analysis include:

The Results

To know more about our supplier risk analysis solutions?

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Overview of the Industrial Equipment Manufacturing

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Category Overview

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Fundamental questions answered in this category management study include

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To know more about our procurement best practices solutions for an olefin fabric manufacturer

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The Business Outcome

To know more about our supply chain risk assessment for the manufacturing industry

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