Tag: procurement market intelligence

Procurement market intelligence

Procurement Market Intelligence: How a Pharmaceutical Company Achieved Cost Savings on Categories Using Plastic Polymers

The Business Challenge

A well-known pharmaceutical company that markets its products to healthcare practitioners, hospitals, and managed care providers in over 15 countries was facing predicaments in optimizing business process results. Their inability to track the supply market conditions was increasing the turnaround time for the Purchase Requisition (PR) to Purchase Order (PO) process.  The lack of metric visibility, proper control mechanisms, and cultural barriers was restricting global standardization and scalability of business operations.  The inefficient mechanisms were further resulting in excessive costs for the company.

Analyzing supply market conditions is crucial for companies to maximize ROI. Request a free proposal and access our complete portfolio of procurement market intelligence solutions.

Solutions Offered

In partnership with the client, the procurement specialists at SpendEdge conducted a detailed analysis of the supply market from the perspective of the pharmaceutical company and offered them with in-depth procurement market intelligence insights. They formulated effective strategies for achieving sourcing and procurement excellence, which helped the client to maximize its ROI. This substantially reduced the time spent on analysis and curating information and enabled them to focus on strategic sourcing and cost reduction opportunities.

A centralized and standardized transactional procurement process was introduced to create strategic and tactical functions. Under the new scheme of things, strategic activities were performed to eliminate delivery disruptions and reduction in payment disputes. Unproductive and inefficient processes were further identified across sites to measure the effectiveness of service delivery results. The strategic group was made responsible for category management across sites to proactively leverage global volume and monitor industry trends.

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Key Findings

Reduced Cycle Time

The standardized processes refined the Purchase Requisition (PR) to Purchase Order (PO) process and reduced the cycle time to 0.5 days from 2 business days. The metrics implemented improved the visibility of productivity and service levels within three months. Also, the procurement market intelligence solution helped consolidated major suppliers in the supply market who can provide end-to-end service and meet their changing demands.

Achieved Cost Savings

The procurement market intelligence solutions rendered by experts further helped the client to realize cost savings on categories which predominantly use plastic polymers (as the prices of polymers declined from their level in 2017-18). They developed a robust contract compliance team and established a contract having provisions for raw material price adjustments to deal with market fluctuations.

How Procurement Market Intelligence Solutions Help Companies?

Procurement market intelligence solutions help gather and analyze the information relevant to a company’s supply markets and improve the procurement process. They help classify critical-to-quality factors that influence the buying behavior and leverage and identify the costs associated with energy, overhead, materials, labor, transportation, profit, and other cost components. Also, procurement market intelligence solutions help reduce risks, increase savings, and improve decision-making capabilities for companies.

Leveraging procurement market intelligence solutions can offer numerous benefits for businesses.  Get in touch with our experts and know how our procurement services can help you leverage the benefits of procurement market intelligence solutions.

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Procurement Intelligence Solutions for a Retail Company – A SpendEdge Success Story

Procurement Intelligence Solution Transforms Finance Operations and Enhances Supply Management

About the Client 

The client is an American multinational retail-clothing firm. With over 500+ stores, the company employs around 57,000 people globally.

The Business Challenge 

With changing consumer behavior and technological innovations, retailers across the globe are uncovering new ways to sustain from the disruption. Moreover, retail brands are coping with a long-term uptrend in commodity and other raw materials input prices, and rapidly shifting global supply chain. These mounting global supply chain complexity with retail markets is forcing retail companies to be more agile and react faster than other players in the market. This is where procurement intelligence comes into play. In today’s competitive market scenario, procurement intelligence is the key to establishing long-term strategic sourcing and supply management plans.

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Outsourcing services

How Market Intelligence Can Dramatically Boost Your Supply Chain

The supply chain in modern companies is increasingly complex and dynamic in nature. From suppliers and industries to raw materials and commodities, there have been steady changes taking place across the supply chain of new age companies. Furthermore, the increasing uncertainty in the economic markets are forcing organizations to closely monitor market conditions and respond appropriately through improved supply chain strategies.

Traditional ERP systems are undoubtedly highly useful management tools, but they are mostly blind to external data. Their “inside-out” approach can leave companies inadequately equipped when planning and executing competitive supply chain strategies. However, with the advent of new market intelligence tools can resolve this problem. With the help of supply market intelligence, ERP systems can now incorporate real-time insights on suppliers, customers, and competitors, thus creating a perspective to reduce risk and create a competitive advantage. Here are just five benefits companies can realize with a market intelligence intelligence-driven supply chain.

Improved supply chain strategies

 It is vital to take into consideration the impact of potential events before undertaking supply chain planning. For instance, factors such as a sudden increase in demand, or in the event of any supplier undergoing a catastrophic event, companies must be able to be prepared to handle such situations. Market intelligence provides early warning signals and unique insights into events that are likely to occur. Furthermore, it can also help in assessing alternative suppliers and approaches. This prepares companies to handle unforeseen contingencies better.

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Competitive advantage

Competitive advantage often comes to companies who are more agile, nimbler, and react faster when compared to their peers in the market.  In fact, a quick reaction to unforeseen disruptions is the route for modern companies to gain a competitive advantage. For instance, if a particular supplier is struggling to meet the company’s demand, they can quickly move to an alternative. Or, if a key component may be difficult to procure, companies can lock up the supply before the competitor does. Market intelligence via real-time alerts is key to achieve this as it gives faster insights for companies to be prepared for contingencies in the future.

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Leading Change Management Consulting Companies in The World

For modern businesses, change management is an unavoidable aspect. Over the years most businesses seldom made any major changes to their operations. However, the rise of globalization has necessitated the requirement for change for companies that operate on a global scale. This is one of the key factors that have prompted several key global players to embrace change management in order to optimize their transitions. Change management consulting firms provide their clients with consultants to simplify the redirection of resources, budgets and other aspects of business operations. Companies that want to implement significant changes to the operation of their business must take steps to make sure the process is productive. Change management consultants ensure that these companies transition in an effective and efficient manner. The practice of change management consulting relies on several key components including outlining a vision, involving senior leadership, developing a change management plan, engaging stakeholders, creating supportive infrastructures, and accurately measuring progress.

SpendEdge’s Procurement intelligence Report on the ‘Global Organization and Change Management Consulting Market’ furnishes precise insights on the market growth, procurement best practices, top companies, and other procurement related data of the change management consulting market.

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Top change management consulting companies

TCS

Tata Consultancy Services (TCS) is an Indian company that was founded in the year 1968. The company is a global consulting and IT solutions provider with a talent pool of over 387,200 global employees. TCS has been recognized as a Big4 Global IT Services Brand by Brand Finance. The company operates in over 40 locations across the globe. Their vast global presence helps in the availability of competencies for any technical assistance mission or application project across countries.

CGI

This Canada-based company offers an extensive global network that is made up of numerous centers of excellence and strategically located around the world to meet the needs of their clients. CGI’s change management services offer various benRequest Demoefits including stakeholder management, benefit management, business process redesign, communications, and training.

Willis Towers Watson

Willis Towers Watson is a global advisory, broking, and solutions company that employs a workforce of over 40,000 people and is located in 140 countries across the world. The company’s change management experts are known to help clients understand the attitudes, perceptions, and agendas of different employee and stakeholder groups and communicate the company’s plans in an effective manner to these group. The company’s strategies are also designed to help clients achieve their M&A plans.

Genpact

Genpact is a US-based company that was founded in the year 1997 and currently operates in over 25 countries across the world. It is a global professional services firm that drives digital-led innovation and digitally-enabled intelligent operations for their clients. Genpact began in 1997 as a business unit within General Electric, however, in January 2005, the company became an independent, consequently becoming a publicly-traded company in 2007.        


SpendEdge’s procurement report on the ‘Global Organization and Change Management Consulting Market’ offers actionable insights on the factors impacting the cost in the industry, top companies in the change management consulting market, and tips to improve procurement efficiency.

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Achieving Successful Strategic Procurement in the Chemical Industry

Strategic procurement is a plan that is crafted with the sole objective of achieving goals that may be quite far off in the distance, such as five or ten years into the future.  A strategic procurement strategy not only helps come up with short-term solutions but rather involves coming up with strategies that will serve the long-term purpose. In any organization, strategic procurement plans are created by top-level management and the same applies to firms in the chemical industry. A strategic procurement plan also influences the tactical procurement plans that are developed and implemented.  It is a comprehensive plan that takes into account the targeted objectives and needs of the procurement department of the firm. Strategic procurement is one of the most significant tools that helps in maximizing the valuerequest proposal contribution of any company. It serves as a guide for any organization and should be updated regularly at the interval of a year to ensure its alignment with the overall business strategy.

In this blog, the procurement experts at SpendEdge explain some of the strategies for developing a successful strategic procurement plan for the chemical industry.  (more…)

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Procurement Market Intelligence for a Leading Agricultural Biotechnology Company – A SpendEdge Case Study

Engagement Overview:

A leading agricultural biotechnology firm was looking at devising an effective solution that would help them answer some essential procurement questions regarding – distribution centers, purchasing managers, and SCM. To do so and to achieve the onsite procurement goals the biotech industry client approached SpendEdge to help them leverage procurement market intelligence based solutions. A detailed quantitative analysis of various categories within the supply chain network was carried out request proposal to identify and benchmark the biotech industry best practices.

About the Client:

One of the fastest growing agricultural biotechnology company, employing over 900 professionals across various economies.

Business Challenge:

The agricultural biotechnology client was facing challenges in achieving their onsite procurement goals.


How did SpendEdge Help the Client?

  • Step 1: Developed a procurement market intelligence framework

The framework helped the client identify various sub-categories and assess where they needed intelligence the most. This further resulted in the development of strategies to best acquire the levels of information based on costs and expected value.

  • Step 2: Built a robust market intelligence based unit for frequently sourced categories

It is essential to devise an internal intelligence unit for most important categories in terms of spend and criticality to the business. To do so, firms have to seek advice from procurement experts to focus exclusively on particular market segments. Agricultural biotechnology firms that have already made such investments can further enhance them by devising a framework for capturing and sharing market intelligence across the supply network.

  • Step 3: Leveraged basic intelligence capability for the other categories

A basic intelligence capability that leverages real-time market activity is likely to be sufficient for categories that are not frequently sourced. By doing so, agricultural biotechnology firms can develop a basic process to capture intelligence from frequent sourcing activities and then populate the supplier database with information about both supplier capabilities and their past performance.


Key questions answered in this procurement market intelligence engagement include:

Agricultural Biotechnology


Benefits of the Engagement:

The procurement market intelligence engagement helped the agricultural biotechnology company to leverage category specific intelligence and enhance business efficiency. Our procurement market intelligence experts worked as an extension of the firm to identify the success factors that uncovered major opportunities for improving their sourcing strategies.

Why incorporate market intelligence in procurement?

With the rise in end-market volatility and growing financial pressures to do more with less information. Organizations across industries are starting to realize the need to employ a best-in-class procurement model. However, developing a best-in-class procurement model by incorporating market intelligence capabilities posses several challenges even for the most resourceful organizations.

Moreover, as procurement increasingly shifts focus from profit margin expansion to that of a strategic enabler of business growth, procurement leaders can maximize benefits by leveraging market intelligence for making appropriate business decisions on sourcing strategies.

Our Findings:

It is quite evident that the role of market intelligence as a strategic business enabler in procurement is now bigger than ever. This is driving world-class biotech industry firms to implement procurement intelligence and deliver breakthrough business value. However, it is up to the individual organization to either build this capability with internal resources or partner with third-party providers.


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Top 5 Procurement Challenges Impacting Businesses in 2018

Today, no one can say that procurement professionals and sourcing teams have it easy. They face daunting challenges and struggle to stay abreast of all the regulatory changes happening around the globe. Procurement, for many, is an undervalued operation that impacts every facet of your business.  While there are many procurement challenges, each organization will face its own unique set of challenges. In this article, we’ll talk about some of the common procurement challenges that companies will face while sourcing goods and services this year.

TOP PROCUREMENT CHALLENGES


Effective risk management

risk management2Procurement challenges are an inherent part and parcel of every business process. Each business faces them at some point but managing them effectively is something that every procurement team struggles to do. With the focus shifting towards business expansion, it is no longer good enough to engage with tier 1 suppliers. Implementing an effective risk management strategy at the very start of the procurement process, therefore, becomes a necessity for companies looking to expand their boundaries. But before any company thinks about engaging with tier 2 or tier 3 suppliers, implementing risk mitigation strategies like analyzing the risk of each supplier, comprehensively understanding their supply chain, and putting backup plans in place in case things go wrong become essential.   

Read on to know more about procurement challenges.

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Top 5 Epoxy Resin Suppliers Making a Name for Themselves in 2018: Supply Market Research and Procurement Insights

Epoxy Resin Supply Market Overview

In 2017, most of the demand for epoxy resin came from the paints and coatings and electronics industries.

Epoxies, generally, have favorable properties such as high mechanical strength, superior chemical resistance, superior adhesion, and resistance to heat. Such properties make them ideal for CTA view full reportindustrial applications such as marine coatings, decorative powder coatings, and composites. In addition, the rising demand for epoxies from such industries will result in the steady increase in spend growth rate over the next couple of years. According to SpendEdge’s procurement report on the epoxy resin category, the market will witness an increase in the spend potential, driven by the booming demand for epoxy resins from the automotive and aerospace end-users.

Given the fact that the supply market for epoxy resin will witness an increase in the spend potential, a question that arises here is: what are the major supplier selection criteria and how to select the best suppliers for effective category management?


Top epoxy resin suppliers:

  1. Nan Ya: One of the top epoxy resin suppliers, Nan Ya was founded in 1958 and is headquartered in Taiwan with offices spread across 50+ countries. When it comes to epoxy resins, Nan Ya has two bases in Shulin and Mailao (Taiwan) and two in Kunshan (China). Over time, the company has increased its annual capacity from 18,000 MT in 1988 to more than 461,000 MT in 2015 to cater to the rising need for epoxy resin from various end-user industries. Want more information? Download a FREE sample.

 

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