Procurement market intelligence solutions Archives - SpendEdge

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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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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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The Future of Procurement: What has 2019 Got in Store?

Advancements in technology, business practices, and consumer demands have brought about a wave of changes in procurement. With time, procurement’s role in business is changing. In most organizations, procurement is now considered a strategic contributor to an enterprise’s growth and performance. Furthermore, the rise of new procurement trends has resulted in considerable changes in the procurement functions. There are several revolutionary procurement trends that we see today, but it is also important to recognize, acknowledge, and perhaps even leverage them as we work to improve the entire procurement cycle. According to the industry experts at SpendEdge, here are some of the top procurement trends that all set to take off in 2019:

Procurement trends 2019 

Digitization and blockchain

Blockchain is one of the hottest topics across various industries right now and is soon set to become one of the most sought-after procurement trends. Blockchain technology is believed to play an integral role in shaping the transparency of a supply chain. This technology would make it possible to easily share and transmit information in a safe manner across the supply chain. Furthermore, consequent to blockchain’s increasing influence, there is a predicted rise in digital adoption and use of the cloud.

Talent shortage

One of the procurement trends that companies can expect in 2019 is a shortage of qualified talent. Through 2020, the jobs in procurement and logistics are excepted to shoot up by over 20%. Some of the key factors contributing to this include – changing skill requirement, aging workforce, lack of development, and the common perception that supply chain jobs lack excitement. As the role of procurement is changing in most enterprises, the requirement for additional skills sets such as soft skills, critical thinking, and creativity are also growing.

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Corporate social responsibility (CSR)

Over the last few years, CSR has become a procurement criterion in its own right. The rising popularity of CSR among procurement organizations is expected to make it one of the key procurement trends in 2019. This trend is particularly noticeable in the public sector as public purchasing policies are based on European directives, and in large businesses with more than 5000 employees as their responsibility is scrutinized more closely and their larger workforces allow for it too.request proposal

Cybersecurity

In the past few years, the cyber-attacks have skyrocketed at an alarming rate in the U.S. To make it worse, cyber-attacks are growing in size, sophistication, and cost. So, there is little doubt that such malicious practices will continue to plague organization in 2019. In response to the threat, procurement teams must aggressively identify ways to protect the sensitive personal and financial information belonging both to their own organizations and to their suppliers.


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IR21

Procurement Intelligence Study Assists a Chemical Industry Client Evaluate Suppliers’ Pricing Strategies

Category Overview

In today’s competitive business scenario, establishments are accelerating at a rapid pace with no limitations. Notably, the global chemical industry is susceptible to price changes, due to the rising need to reduce costs among the target audiences. Hence, to effectively keep track of the expenses, leading procurement organizations in the chemical industry have started leveraging procurement intelligence studies. Additionally, firms operating in the chemical industry space are planning to break stereotypes of not being confined to a region and are heavily investing in expansion strategies to showcase their product offerings.

Moreover, the procurement intelligence solutions offered by SpendEdge, help clients gain a deeper understanding of the key risks, latest developments and trends, and recommendations on devising procurement best practices across the supply chain.

The Procurement Challenge and Insights Offered

A global chemical industry client was facing predicaments in understanding the supply market dynamics, current market position, and potential growth drivers. Additionally, the client wanted to understand the supplier landscape in terms of the dominant players, their supply chain capabilities and facilities, and the supplier diversity programs adopted. They also wanted recommendations on ways to enter into a superior contract negotiation with the current suppliers.request free proposal

To address the business issue and meet the specific requirement of the client, the procurement intelligence analysts at SpendEdge carried out a blended approach comprising of primary and secondary research.

With the help of this procurement intelligence study, the chemical industry client was able to identify the supplier’s cost and pricing structure and develop a compelling price model analysis to evaluate competitors’ strategies. Additionally, through a comprehensive SWOT analysis, the client developed a list of suppliers in terms of their business profile, financial structure, and revenue.

Fundamental questions answered in this procurement intelligence study include

Procurement IntelligenceBusiness Outcome

This procurement intelligence engagement helped the chemical industry client to identify the potential supplier risks and reduce the overall procurement costs. Additionally, the client gained suggestions to serve customers seamlessly.

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IR2

Procurement Market Intelligence helps a Food Service Client Evaluate Suppliers’ Pricing Strategies

Category Overview

Over the past five years, the food service industry has become sophisticated owing to variables such as short lifecycle of new products, limited time offers, and dynamic, flexible marketing. Additionally, factors such as the rising demand for quick food service establishments and growing convenience are boosting the growth of the food service industry across the globe. However, according to the market intelligence specialists, the shifting consumer attitude towards healthy food and rising commodity prices are contributing to the sluggish growth of the market.

As a result of such challenges, food service players have started adopting procurement market intelligence studies to evaluate suppliers’ pricing strategies and cut down the overall costs. Moreover, the procurement market intelligence solutions offered by SpendEdge also help food service clients achieve better supplier relationship with the suppliers.

The Procurement Pain Point and Insights Offered

A global food service client wanted to evaluate suppliers’ pricing strategies to cut down on the overall costs. Additionally, the client wanted recommendations to enter into a better contract negotiation with their current suppliers. The client also wanted to gain an in-depth understanding of the supply market and assess their overall procurement capability across the supply chain to serve their customers better.request free proposal

The market intelligence specialists at SpendEdge conducted an in-depth industry analysis, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies, to cater to the specific category requirements of the client.

With the help of this procurement market intelligence study, the food service client was able to evaluate suppliers’ pricing strategies, which, in turn, helped them enter into a better contract negotiation. Additionally, the client was able to evaluate their overall procurement competence across the supply chain to serve their customers better through a detailed understanding of the supply market.

Key questions answered in this procurement market intelligence study include

Food ServiceBusiness Outcome

The procurement market intelligence solution provided by SpendEdge helped the food service client identify potential supplier risks and save massive amounts in their procurement operations. Additionally, the client was suggested insights into the supply market to better serve their customers.

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Procurement Market Intelligence Helps a Machine Tools Manufacturer to Assess Suppliers’ Pricing Strategies

Category Overview

The machine tools manufacturing industry is driven by the advent of robotic-assisted technologies, advanced grinding techniques, surging automation in end-user industries, and rising popularity of carbon fiber-reinforced polymers. Additionally, investments in expanding manufacturing capabilities for durable goods is also helping the machine tools production firms.

However, according to SpendEdge’s procurement market intelligence experts, the evaluation of market dynamics, drivers and niches, and supplier diversity poses a significant challenge for the machine tools manufacturers. As a result of these challenges, many machine tools manufacturing firms have started opting for procurement market intelligence studies to assess suppliers’ pricing strategies.

Moreover, the procurement market intelligence studies offered by SpendEdge also help machine tools manufacturers to achieve superior supplier relationship management.

The Procurement Pain Point and Insights Offered

A leading machine tools manufacturer wanted to assess suppliers’ pricing strategies to serve their customers better. Additionally, the client also wanted to gain a detailed understanding of the supply market and evaluate their overall procurement competence across the supply chain. They also wanted recommendations on ways to enter into a better contract negotiation with the current suppliers.request free proposal

The procurement market intelligence experts at SpendEdge carried out an in-depth industry analysis, including primary and secondary research coupled with qualitative and quantitative data collection methodologies, to cater to the specific category requirements of the client.

During the course of this market intelligence study, the machine tools manufacturer was able to assess suppliers’ pricing strategies. This helped them to enter into a better contract negotiation with the current suppliers. Additionally, the client was able to gain a detailed understanding of the supply market and evaluate their overall procurement competence across the supply chain to serve their customers better.

Key questions answered in this procurement market intelligence study include

machine toolsBusiness Outcome

This procurement market intelligence study helped the machine tools manufacturer client assess suppliers’ pricing strategies. Additionally, the client was also able to identify potential supplier risks and save huge amounts in their procurement operations. Furthermore, the client was recommended suggestions on the supply market to serve their customers better.

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IR31

Home Care Products Manufacturer Leverages Procurement Market Intelligence to Identify Potential Supplier Risks and Take Timely Decisions

Category Overview

The home care products industry is growing considerably due to the growing health awareness, increase in per capita income of people, and improving standards of living. Additionally, the availability of a wide range of products and variation in product prices is also fueling the growth of the home care industry.

According to Spend Edge’s procurement market intelligence experts, home care products firms are finding it increasingly difficult to maintain standards and monitor practices across all employees and suppliers. As a result, many home care products firms have started opting for procurement market intelligence studies to identify potential supplier risks and take timely decisions. Moreover, the procurement market intelligence studies offered by SpendEdge also help home care products firms identify metrics for a superior supplier relationship management.

The Procurement Pain Point and Insights Offered

A leading manufacturing firm specializing in home care products wanted to assess the overall market dynamics and gain insights on the key drivers and niches. They also wanted to gain an overview of suppliers and their diversity across the supply chain. Furthermore, the home care products client wanted to evaluate risks, compliance, and responsibilities of the suppliers and take timely decisions.request free proposal

The procurement market intelligence experts at SpendEdge carried out an in-depth industry analysis, including primary and secondary research coupled with qualitative and quantitative data collection methodologies, to cater to the specific category requirements of the client. During the course of this competitive intelligence study, the home care products client was able to gain an in-depth understanding of the risks affecting suppliers across the supply chain. Additionally, they also gained insights about the pricing and cost structure of the suppliers through SpendEdge’s price model analysis.

Key questions answered in this procurement market intelligence study include

home care productsBusiness Outcome

This procurement market intelligence study helped the home care products client identify potential supplier risks and take timely decisions. This helped the client save massive amounts in their procurement operations. Additionally, the recommended metrics for a superior supplier relationship management helped them serve their customers better.

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Decreasing Operational Costs Through Effective Procurement Market Intelligence

Category Overview

Through procurement market intelligence, firms can gather and analyze relevant information to a company’s supply chain specifically for confident decision making in the procurement process. Additionally, procurement market intelligence can be used to discover new suppliers, the origin of capable suppliers, and new capabilities of existing suppliers.

Since procurement market intelligence solutions help clients identify the costs associated with materials, transportation, labor, and profits, many firms have started opting for procurement market intelligence studies to gain insights into the latest trends and developments, key risks, and procurement best practices.

The Procurement Pain Point and Insights Offered

A global market leader specializing in the design and manufacturing of oil and gas equipment, operating across multiple countries was facing high operational costs and had difficulty in managing their rapid growth. Additionally, the client also experienced excessive fees and cost pressures associated with the day-to-day operational materials and equipment. Furthermore, the client was also facing backlogs of Purchase Order (PO) issues and wanted to reduce freight and logistics costs. The primary scope  of trequest free proposalhis engagement was to help the client manage procurement of vital items, including oil seals, pipe fitting valves, motors, small fabrication parts, and more.

At SpendEdge, the procurement market intelligence experts conducted a comprehensive industry analysis and followed a blended research methodology to cater to the specific category requirements of the client. This study also helped the client centralize the resources management desk and reinforced both sources to pay and order to cash initiatives inside the organization. Additionally, the client could maintain the allocated parts and sales order entry point for the in-stock system. Furthermore, with the help of our strategic insights, the client could implement best practices into the supply chain and accomplish a zero-defect transaction management.

Key questions answered in this market intelligence study include

market intelligence

Business Outcome

SpendEdge’s procurement market intelligence study helped the client reduce the number of requirements for POs. Additionally, the client was able to significantly decrease the sales order to invoice process time and consequently achieve operational cost savings. SpendEdge’s procurement market intelligence study also helped them enhance their operations and improve their overall procurement capability.

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IR2

Procurement Market Intelligence Helps a Packaging Company Reduce Procurement Spend

Category Overview

The growth of the packaging industry across the globe is mainly due to environmental concerns, sustainability, and the demand to keep the product quality high. Over the years, packaging has become an essential part of a product’s lifecycle and has gone beyond its traditional usage, which was limited to protection. Moreover, the higher demand for a more sustainable, fresh and healthy, and hygienic product range in the developed markets is also contributing to the growth of this industry. However, the stringent regulations from governments across the globe over the packaging of chemical products and rising concerns regarding biodegradability of packaging materials are some of the factors restraining the growth of this market. As a result of such challenges, many packaging companies have started opting for procurement market intelligence studies to identify the constraints and risks to achieve savings and capture the synergies that are present in an integrated organization.request free proposal

The Procurement Pain Point and Insights Offered

An international packaging manufacturer wanted to identify and evaluate potential procurement savings as they had taken over its main competitor and soon realized overlaps in significant areas of the Asia Pacific. The integration of the two companies also resulted in a major spend across many product categories. As a result, they wanted to cut down on the principal spends. Additionally, the client also wanted insights on the spending by suppliers, markets, products, period, direct and indirect costs, and forecast versus actual expenditure.

SpendEdge’s procurement market intelligence analysts conducted an all-inclusive industry analysis which included primary and secondary research coupled with qualitative and quantitative data collection methodology to cater to the specific category requirements of the client. This study helped the company discover a game-changing approach to the mega-supplier relationship. The suggested approach included new sourcing strategies, prioritized action plans, best practices in direct and indirect category management, and the establishment of a centralized procurement organization.

Key questions answered in this market intelligence study include

market intelligence

Business Outcome

This procurement market intelligence study helped the client identify an enormous amount of procurement savings. The savings were categorized into three types including low-risk savings resulting from consolidating contracts and obtaining better prices, moderate-risk savings that require engagements with suppliers, and longer-term savings that need process and operational improvements and changes to the product portfolio.

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