Tag: procurement cost saving

IR27

3 Procurement Trends That Can Change the Dynamics of the Mining Industry in 2019

Today commodities are moving back broadly into the global market balance but the challenges for the mining industry are far from over. In a world of more complex ore bodies, deeper mines, social and geopolitical risks, growing energy costs, resource nationalism and lack of infrastructure, global mining industry remains under exceptional pressure to control costs, boost efficiency and improve safety performance.

Rising cost is a cause of concern for the mining industry as the strategies of mining companies depend heavily on the current state of the market. Also, the rise in cost is resulting in the declining quality of ore and limited accessibility of new deposits. This will squeeze the supply in the years to come, potentially driving a commodity-price rebound as the global demand continues to rise. So, the companies need to analyze the new procurement trends in the mining industry that can offer exceptional opportunities for efficiency gains and can help in controlling costs as well.

At SpendEdge, we understand the impact that rapidly changing procurement trends can have on your mining business. And to help companies in the global mining industry to reposition their portfolios and excel in the competitive landscape, our team of experts has highlighted three procurement treContact USnds that have the potential to change the complete dynamics of the mining industry in 2019.

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IR35

Adoption of Automation Driving the Demand in the Stackers Market

SpendEdge Procurement Market Intelligence - StackersLondon, Mar 23, 2018: The growth of port infrastructure and rise in the adoption of automation across end-user industries, such as e-commerce, packaging, logistics and warehousing, food and beverage, and mining, have driven the demand for stackers that are used for picking and moving products at operational facilities of end-users. This, in turn, is driving the growth of the global stackers market.

SpendEdge’s latest procurement research report on the global stackers market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the facility management, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“The increased use of reach stackers at ports to move goods from the ship to the port facilities is contributing to the growth of the stacker market. Stackers help in efficient handling of goods with minimal damage during transportation from ship-to-shore.” – Tridib Bora, facility management expert at SpendEdge.

Buyers generally prefer to procure stackers that have high reliability to minimize unexpected breakdowns. However, buyers find it difficult to analyze and compare highly reliable stackers due to high customization and the availability of a large variety of models. As a result, procurement teams in this market are facing difficulty in analyzing the reliability of stackers.

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This procurement report on the glass stackers market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

Get unlimited access to all our reports. Get access to our reports to gain insights, platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now


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IR36

Top 5 Countdown – The Best of MRO Supplies and Services Vendors

Any company’s job is not all done after the purchase of an equipment, plant, machinery, or such assets. In fact, it’s a whole new challenge to keep such assets up and running. This is where the importance of MRO supplies gets highlighted. The field of maintenance, repair, and overhaul (MRO) is vast and comprises of multiple products and services. Technically, MRO services include functional checks, repairs, servicing, replacement, residential installations, supporting utilities in industrial installations, infrastructure building, and machinery building. In some domains like aircraft management, MRO services also include the supply of spare parts, raw materials, accessories, adhesives, sealants, consumables, and coatings for aircraft maintenance at the utilization SE_Demo2stage. So, who are the top suppliers of such MRO products and services?

Top MRO supplies and services providers

Sonepar

Sonepar is an independent family-owned company and a global leader in the B2B distribution of electrical products and related services. Founded in 1969 by Henri Coisne, Sonepar operates through 345 entities spread across 2,800 branches globally. The company saw an increment in revenues for the year 2016 by earning 20.6 billion Euros, which can be attributed to the growing applications for electrical equipment, need for new services, and rapidly changing product technologies. Wiring devices, HVAC, distribution transformers, home automation, industrial automation, and VDI and some of the key product and services offered by this MRO supplies and service provider.

Top MRO Supplies and Services ProviderFerguson plc

Ferguson plc formerly known as Wolseley is the world’s largest distributor of plumbing and heating products. The MRO service provider has a broad customer base that comprises 60,000 suppliers and 1.1 million consumers worldwide. The company sells its product under a different brand name including Center, Raptor, Jet Range, Center Rad, and Nabis. The company has operational units spread across the US, Canada, the Nordic region, Central Europe, the UK, and France. Ferguson plc offers a wide range of MRO supplies including boilers, radiators, pipe systems, drainage systems, cooling systems, and commercial plumbing.

Rexel

Rexel is a French group founded in 1967 and is a global distributor specializing in products and services to the energy sector. The company distributes MRO supplies and services in the areas of technical supply, automation, and energy management. This MRO services provider offers its products to commercial, industrial, and residential sector with the majority of its revenue incoming from the commercial sector. Their MRO supplies include lighting, climate control, security, photovoltaics, EVs, and home automation products and solutions. The company boasts over one million products in its portfolio with operations spread across 2,100 branches globally.

Wurth Group

The Wurth Group is considered a leading vendor and a worldwide wholesaler of dowels, fasteners, screws and screw accessories, tools, machines, and installation materials. With a global customer base of over three million people, the company offers more than 125,000 products. The company provides a diverse range of products and services including chemical and technical products for maintenance, servicing and bodywork, tools for pneumatic and electric machines, rapid assembly systems, and fastening materials and sealing technology.

W. W. Grainger

W.W. Grainger is one of the Fortune 500 industrial supply company and also the oldest provider of MRO supplies. The company serves over three million customers through a network of 598 branches and 33 distribution centers. Their MRO services portfolio includes safety, facility, energy, lighting, mid-stream utility, and after-hours emergency services. In the US alone, the company boasts an impressive portfolio of over one million products serving over 7,000 brands.

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What’s Happening in the Global Clove Oil Market?

Cloves occur in nature as unopened pink flower buds of the evergreen tree and are indigenous to Indonesia and Madagascar. Such cloves are handpicked and dried until they turn brown, after which they are grinded to powder form and then converted to essential oil for medicinal purpose. Cloves are essentially high in manganese and other nutrients such as magnesium, calcium, and potassium. Due to its nutritional content, it is widely used in aromatherapy and flavoring. Additionally, clove oil has a variety of other benefits ranging from anti-inflammatory for oral infections to curing toothaches and acne. Due to its ever-increasing demand from pharmaceutical, fragrance, and food industries, the demand for clove oil is expected to rise to six thousand tons by 2022. (SpendEdge Procurement Market Intelligence Report)

Request Free SampleTop trends in the clove oil market

Government support for clove tree farmers

African and Indonesian governments are increasingly introducing initiatives to support local clove tree farmers to boost economic growth. For instance, the government of the Republic of Tanzania has implemented measures to boost production through policy reforms and law amendments. Such measures are undertaken to increase the production and purchase of cloves from the farmers themselves. As a result of such initiatives, Tanzania grew its cloves export from $20 million to $54 million in 2016 within a span of one year. Additionally, in March 2017, the Indonesian government formed a farmer’s learning group in the Buol district of Sulawesi to facilitate information sharing among farmers about best-practice agroforestry farming techniques.

Increasing uses for essential oils

The demand for essential oils all across the world is in the rise attributing to increased use as raw materials in the food, pharmaceutical, cosmetics, and spa industries as well as across several other products. One of the major applications of clove oil is as an ingredient in toothpaste and mouthwashes to promote oral hygiene. Additionally, it is also used as massage oil in the aromatherapy industry. With such lucrative opportunity existing in the clove oil market, suppliers such as dōTERRA and Young Living are focusing on expanding their product offerings through direct selling channels.

Increased awareness of clove oil benefits

Clove oil is used in aromatherapy as it reduces anxiety, eases depression, and speeds up the healing process. End-consumers are getting to know such benefits of clove oil, and with an increased inclination towards leading a healthy lifestyle, there is an increasing tendency to use the essential oil for aromatherapy. Such health benefits will drive consumers to demand the natural essential oil in the long run.

Modern essential oil extraction method

Oil extraction methods such as expression-based, enfleurage, and steam-based distillation have been widely and commercially used in the oil industry. Such methods aren’t as efficient as modern techniques. Additionally, some modern techniques are more suited for certain applications such as perfumery. For instance, solvent-based extraction makes the use of hexane and acetone to separate the oil. Percolation and phytonic process are some of the new techniques used for clove oil extraction. These techniques reduce the overall operational cost for the supplier and enable them to pass on the saved costs to the buyers. In addition to reduced costs, such methods will also increase the overall production volume of clove oil and also reduce the fixed costs for suppliers.

Read more about the upcoming trends in the clove oil market along with supply market insights, procurement best practices, category management, and pricing insights in SpendEdge’s upcoming report on the global clove oil market.

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Outsourcing services

Increasing Consumption of Alcoholic Beverages Driving the Demand for Glass Bottles and Containers

SpendEdge Procurement Market Intelligence InfographicsLondon, Feb 27, 2018: Increasing consumption of alcoholic beverages such as wine and beer across the globe, especially in regions such as APAC and South America, consequently contributes to the demand for glass bottles and containers for packaging, as they facilitate high designing capabilities for the buyers. Additionally, the rise in demand from the cosmetics and perfumes industry is also driving the demand in the global glass bottles and containers market.

SpendEdge’s latest procurement research report on the global glass bottles and containers market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the packaging and labeling, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“Glass bottles and containers are one the most preferred materials for packaging across end-user industries as they are 100% recyclable. The growing stringency of regulations in packaging from regulatory bodies has shifted the focus of buyers towards glass bottles and containers as a packaging option.” – Bhuvaneshwari Udayakumar, packaging and labeling expert at SpendEdge.

Buyers in the industry face challenges with standardization of products in terms of quality across their production hubs due to variance in raw materials and cullet quality and testing capability of the personnel. As a result, buyers face procurement challenge in labeling and packaging of substances. Also, improper quality of bottles and containers may affect the shelf life of product stored and lead to losses for buyers.

Need more insights on this report?

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This procurement report on the glass bottles and containers market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

Get unlimited access to all our reports. Get access to our reports to gain insights, platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now


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IR33

Top Procurement Challenges Hindering the Growth of the Global Spice Market

Spices are widely used to flavor, preserve, or color the food. The earliest spice trade was estimated to be carried out at around 2000 BCE throughout South Asia and the Middle East where cinnamon and black pepper trade were carried out. Although early uses for spices were connected with magic, religion, tradition, medicine, and preservation, today it is widely used in food preparations. Spices serve several purposes in cooking and are widely used to add flavor and aroma and enhance the taste and color of food. Additionally, spices also display antimicrobial and anti-inflammatory properties and are also rich in anti-oxidants. Today, India accounts for 75% of the total production in the global spice market. Growing popularity of Asian cuisines in regions such as Europe and North America due to increasing Asian immigrant population is speculated to be the major growth driver in the global spice market. Although the growth prospects look bright for players in the global spice market, they face numerous procurement challenges when it comes to establishing themselves in the market.

Procurement challenges in the global spice market

Clove market

  • Cloves are usually adulterated with materials such as exhausted cloves, mother cloves, brown cloves, or stems for economic gains. Such type of food fraud is quite common in the global spice market. Thereby, it is essential for the buyers to make sure suppliers comply with necessary
  • The clove market is facing challenging times in terms of increasing production and labor cost. Low investment in technology and migration of skilled labor is the primary reason for such increasing costs. The widening gap between demand and supply including the increasing costs is causing problems for the players in the global spice market.
  • Clove suppliers usually source raw material from small farmers. As a result, there’s a high chance that raw materials may not pass the minimum quality standards resulting in the processing of low-quality cloves.
  • Traces of pesticides and contaminants found in the cloves is causing major procurement issues for the buyers in this market. These pesticides are found as a result of usage in the farming process to achieve better yields. It is essential to use various techniques to detect and remove any traces of pesticides or chemicals.

CTA view full reportRequest Free SampleCardamom market

  • The quality of cardamom greatly differs as buyers procure from multiple suppliers. Additionally, soil fertility, organic matter content, and climatic condition also affects the final product quality. To ensure consistent product quality, buyers should evaluate suppliers based on their track performance, supply chain capabilities, and backward integration efficiency.
  • Buyers in the cardamom spice market often expect timely delivery of products. However, it is not always possible to ensure on-time delivery due to demand-supply dynamics and climatic conditions. Delays in the delivery of raw material can significantly affect supplier’s time-to-market of the final product.
  • Identifying the origin and authenticity of the cardamom variety is often a challenging task in the spice market. As a result, suppliers face difficulty in upholding the brand trust. To assess the product origin and authenticity, suppliers are implementing comprehensive identification and tracking systems throughout the supply chain of cardamom.

CTA view full reportRequest Free SampleBlack pepper market

  • Companies usually have a huge demand for black pepper, which is fulfilled by sourcing from multiple locations and nations. However, they face difficulty in sourcing similar quality of black pepper across the nations because of differences in the extraction and manufacturing process. To tackle such issues, it is advisable that buyers engage with suppliers with worldwide presence who standardize their manufacturing process.
  • A few suppliers engage in the practice of diluting black pepper to increase its value. They do so by adding inferior or less desirable elements like mineral oil, papaya seeds, and sawdust. For instance, replacing even 10% of black pepper with papaya seeds can result in substantial profits for the suppliers. As a result, buyers should conduct a proper risk assessment to prevent adulterated materials from entering the food chain.

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IR13

Recent Developments in the Global Agrochemicals Market

In modern farming, agrochemicals are extensively used to neutralize the soil, enhance crop yield, protect crops against pests, and increase plant growth. Various types of agrochemicals are available in the market including herbicides, insecticides, fungicides, and seed treatment chemicals. The first uses of agrochemicals can be traced back to 4500 years when Sumerians used sulfur compounds as insecticides. The demand for agrochemicals is on the rise as the availability of arable land is limited to feed the growing world population. Suitable agrochemicals are thereby used to maximize the use of agricultural land. The recent procurement market intelligence report from SpendEdge on the global agrochemicals market estimates the market to be worth $52.2 billion.

Request Free SampleTrends in the agrochemical market

Increase in restructuring efforts

There is an increasing trend of restructuring efforts in the agrochemical market as leading players strive to obtain the market leader position and expand their product portfolio. The restructuring efforts have also been helped by increasing regulatory complexity, low ROI on R&D investment, and tough market conditions. For instance, market leaders, Dow Chemicals, and DuPont announced their merger in 2015 and completed the activity in 2017. The combined entity would create an agribusiness portfolio that is worth more than US$17 billion. It also helps the buyers in the market as they can purchase all their requirements from one single vendor.

Development of insect-control traits

One of the major concern for agrochemical manufacturers is developing chemicals which effectively tackle insects and other pests, so they cant damage the crop. The agrochemical market is experiencing a renewed interest in insect-control traits as they are researching on new compounds, screening and testing these for active ingredients, and developing them in conjunction with other substances, to make them more viable. For instance, in September 2016, DuPont Pioneer researchers discovered a protein from a non-bacillus thuringiensis bacterium source, which demonstrated an alternative method for controlling corn rootworm in North America and Europe. This can effectively save millions of corn crops that cause significant economic loss to the farmers.

Adoption of precision farming

As farmers face difficulty growing certain types of crops in a given condition with limited resources, it becomes important that scarce natural resources are effectively used to produce more using less. The rapid development of technology in agriculture has resulted in the adoption of various new agricultural practices such as precision farming, stereoscopic agriculture, and ecological agriculture. Among these methods, precision farming is expected to gain prominence as it helps farmers in cultivating crops in all types of soil environments. The advent of GPS and GNSS enables farmers to locate their precise position in a field to create maps to measure variables such as crop yield, terrain, topography, organic matter content, nitrogen levels, and moisture levels.

New regulations

Although agrochemicals play a vital role in increasing the crop yield, it presents its set of side-effects and can sometimes be harmful to the humans or the environment. As a result, government bodies place regulations in the manufacturing and use of such agrochemical. Currently, however, the market has seen an increase in regulations that can significantly hamper the introduction of new products as well as increase the costs of developing an agrochemical. For instance, in 2016, EFSA announced neonicotinoid assessments to be reviewed at the beginning of 2017. France in June 2016 announced that neonicotinoid insecticides would be banned from 2018. This is because the chemical is highly toxic to the bee population as it impacts their ability to forage, learn and remember navigation routes to and from food sources.

Read more about the trends in the agrochemicals market along with supply market insights, procurement best practices, category management, and pricing insights in SpendEdge’s upcoming report on the global agrochemicals market.
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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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IR24

Innovations in Procurement Process that can Reduce Spends for Banking Services

The banking sector is still affected by the great depression witnessed a decade back. Numerous procurement cost including real estate, ATM maintenance, transaction and card processing services, collections, risk management, security services, and in-branch marketing are burdening the banks bringing down their profitability. To remain competitive and sustain in the market banks and financial institutions are looking for various cost containment strategies. The banking sector is looking for innovative ways in their procurement process to control the procurement costs.

Request Free SampleSupplier Cost BreakupSource: SpendEdge Procurement Research Report – Global Banking Services Category

Pooling Resources for Cost Containment

The banks and financial service providers have come up with innovative solutions to pooling of resources for a particular line of business, allocating a dedicated entity to manage the processing. Pooling of resources to share infrastructure and operational costs across the organizations can lead to massive cost savings and at the same time increase the investment efficiency by making capital-intensive projects more viable.

Vendor Consolidation or Supplier Rationalization

Vendor consolidation is one of the procurement strategy used by banking and financial services industry to achieve cost savings. Banks look forward to reducing the number vendors across geographies and business units to focus on selecting preferred vendor per spend category. Implementing such vendor partnerships allow banks to increase their operational efficiency and productivity and thereby save valuable time and money. Additionally, such procurement cost reduction strategies eliminate the need for lengthy training procedures for the staff and also ensure compliance with the procurement process.

Investment in Technology

The financial industry has always been resource intensive and over-reliant on human expertise. Although the majority of the banks invest heavily in ERP systems, the usage of technology is still limited mostly due to lack of people who understand such technology. Blockchain technology is the next big thing in the financial services industry which can eliminate lengthy transaction processes along with costly third-party verification. Such technologies can rapidly increase the efficiency of the procurement process within the financial industry.

Adoption Of Public Cloud Services for Digital Banking

Banking service providers are turning towards applications and storage space available in the public cloud eliminating the need to invest in dedicated hardware and software resources. Opting for various engagement models such as SaaS, PaaS, and IaaS, banks can digitize their services without having to maintain data centers.

Read more about the procurement process in the banking services market along with pricing strategies, supply market landscape, pricing trends, negotiation strategies, procurement cost reduction strategies, and procurement insights in SpendEdge’s upcoming report on the global banking services market.

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IR27

Procurement Analysis – The Costs That You Can Save

Procurement is much more than just a purchase function. Procurement is a process of finding, negotiating prices and terms, and acquiring goods and services from an external party i.e. a supplier. Procurement analysis entails identifying cost saving opportunities, driving profitability, ensuring the purchase strategies are in sync with the business objectives and maintaining optimum inventory levels in the organization. It analysis the suppliers pricing strategy, delivery times, maverick spending and drives an effective supplier relationship management.

Procurement analysis is essential for any organization irrespective of its size or the revenue it generates. With the expansion of business, the organizational complexity also increases, this demands for an effective procurement analysis in place to offer actionable insights and facilitate well informed decision making. Let us have a look at the

Procurement Analysis – Why Does Your Organization Need it?

Procurement professionals believe that procurement analysis is essential for every organization regardless of its size, structure and complexity. It is also essential to conduct it on regular intervals so as to make sure that the organization is investing its money in the right place. Often organizations hold excess inventory resulting in working capital being held captive. They also pay a higher price in order to procure good and services. If only the procurement function analyses its cost components and cost drives, it can drive cost savings in the organization. Performing a procurement analysis helps the organization in identifying costs, determining optimum inventory levels, managing supplier relations and understanding their pricing strategies, establishing acceptable delivery time and eliminating maverick spending.

  • It helps in determining the total costs of acquiring goods and services from an external supplier which includes delivery charges, handling and warehouse costs.
  • It helps the procurement professionals in defining optimum inventory levels, analyzing the costs of handling and storing the goods and evaluating their opportunity costs.
  • This also enables effective supplier relationship management, understanding the supplier activities and pricing strategy, identifying the suppliers that add value to the organization and facilitates the procurement professionals in negotiating terms and conditions with the suppliers.
  • Maverick spending is not good for the organizations health and profitability. Procurement analysis identifies and analyses purchase requests and invoices so as to identify the maverick spending that could have been avoided.

 

Benefits of an Effective Procurement Analysis

A procurement analysis provides detailed insights to the management who can further formulate strategies to drive organizational growth. Three benefits of a procurement analysis are as follows: first, it drives profitability by identifying cost saving opportunities. Secondly, continuous improvement and value addition takes place since the organization is aware of the latest developments and trends in the industry. This helps the procurement function to measure the actual performance with the standard performance and take corrective actions. Lastly, it improves the credibility of the procurement function and motivates it to identify the KPIs that drive cost savings opportunities. An effective procurement analysis guarantees the involvement of the procurement function while developing a new product strategy thereby working in tandem with the other departments in the organization.

At SpendEdge, we offer granular insights that help the organizations to identify cost saving opportunities, determine the factors that drive profitability and make well informed strategic decisions. Our wide range of supply market intelligence services and supply chain risk assessment solutions assist our clients to identify potential procurement pain points and solutions to mitigate potential risks.

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