Tag: procurement market intelligence

market intelligence

SpendEdge’s Procurement Market Intelligence Services Helped an Insurance Company to Select One of the Top Locations for Contact Center Employment in Europe

Insurance Industry Overview 

Constrained growth in the European insurance market has compelled insurance providers to be flexible and agile in adapting their operating models. They need to outsource business processes to maximize their full market potential and minimize spend. Companies must recognize the potential of sourcing options along the overall insurance value chain. This case study is a classic example of how we helped one of the leading insurance companies to explore new contact center locations and understand potential labor market through our procurement market intelligence services.

Business Challenges Faced

The client one of the leading insurance companies was facing predicaments in lowering the costs of the claims call center. They were looking to outsource a combination of customer relations, fraud/disputes, and collections phone calls to two different domestic locations to keep up with customer demand. However, this required the client a thorough understanding of potential labor markets in Europe that could support the project of their size.  The client, therefore, decided to collaborate with SpendEdge to leverage their expertise in offering procurement market intelligence services. The primary objective of the insurance company was to understand the differences in cost between different geographies within Europe.

Key objectives the client aimed to achieve from the procurement market intelligence engagement were:

  • Explore new call center locations with a couple of key suppliers and identify and evaluate possible locations.
  • Better understand call center saturation and labor markets in each potential location.
  • Identify risks related to fraud and theft in each location.

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healthcare industry

Procurement Market Intelligence: Streamlining Procurement Process and Achieving Savings of $19 Million for a Healthcare Products Manufacturer

Recent changes in the Canadian healthcare sector has set the stage for new opportunities for revenue generation. However, recent changes have created the need for companies to improve their procurement process flow and address problems in healthcare procurement.

The Business Problem

The client is a leading manufacturer of healthcare products in Canada and generates an annual revenue of over $70 million. However, the country’s complicated procurement system, coupled with numerous jurisdictions, each with its own legislative framework, was creating a complex healthcare ecosystem. The client was also sourcing products from multiple suppliers and receiving multiple deliveries and invoices, which was leading to excess spend. This compelled the client to map the procurement process flow and leverage SpendEdge’s procurement market intelligence solution to gain detailed insights into the commodity categories and meet regulatory requirements.

Understanding the procurement process flow is crucial for companies to reduce excess spend. Request a free proposal and access our complete portfolio of procurement market intelligence solutions for free.

Solutions Offered and Client Journey

To help the client correctly map their procurement process flow, the experts at SpendEdge identified gaps within their process and consolidated the requirements of all departments within the organization. They also gained visibility into the spend areas and specialty categories to help the client identify cost-saving opportunities.

Insights obtained from SpendEdge’s solution helped the client to track and manage information on supplies, labor, and other expenses. This helped them to identify related goods that can be purchased from fewer suppliers, leveraging larger spend to negotiate better pricing. Also, evaluating suppliers on the basis of the quality of service, warranty, and customer service helped the client to improve the procurement process flow. The solution delivered enabled the client to benchmark pricing and ensure procurement costs were in line with the average market prices.

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Key Findings and Outcome

Achieved significant savings

The improved procurement process flow ensured that the single purchase order and shortlisted vendors could meet the needs of the entire company. This reduced the time taken by the client to process the requests. The solution provided further helped the client to develop a good working relationship with the suppliers and negotiate the best deals. This minimized the time spent on low-value items and helped the client to achieve savings of over $19 million. 

Maintained regulatory compliance

The experts at SpendEdge realized that the government policies and regulations seek to strengthen healthcare security and safety at a macro level. Therefore, they identified laws and regulations that must be followed by the client to sustain themselves in the healthcare market. They focused on compliance, ethics, and risks to drive awareness throughout the enterprise and improved compliance. For detailed insights into the solution offered, request for more information.

What are the Best Practices in Procurement Process?

Since the efficiency of the procurement process can decide the success for businesses, it becomes imperative for companies to follow procurement process steps and map the procurement process flow. Here are a few procurement best practices that companies can follow:

Automate data gathering process: Conducting research on suppliers can be a time-consuming process. By automating this process, companies can ensure the availability of information without spending a lot of time and effort.

Involve in strategic sourcing: The best-in-class organizations obtain feedback and information regarding their objectives and strategies from different functions. This helps them to ensure availability of supplies, reduce the total cost, and streamline the procurement process.

Make continuous improvements: It is advisable for companies to never assume that the procurement process flow is perfect. Make continuous improvements to tap new opportunities and gain greater efficiency.

Want to map the procurement process flow? Get in touch with our experts today!

spend management

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.

IR35

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.

(more…)

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.

IR4

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.

change management

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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IR6

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…)

IR27

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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