Tag: procurement services

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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How Effective Material Procurement Helped a Pharmaceutical Company to Reduce Logistics Costs By 35% – A SpendEdge’s Success Story

The Business Challenge

The client, one of the leading multi-billion-dollar pharmaceutical companies in the world, was facing predicaments in determining the optimal inventory for raw materials. Their material management process of ordering the raw material from suppliers was quite slow and needed to be placed well ahead of times due to long lead-times. This was resulting in differences in the amount ordered and the amount really needed at the time of delivery by the pharmaceutical company.

Are complexities associated with material procurement hampering the growth of your business? Get in touch with our experts and know how our material procurement services can help your organization.

Solutions Offered

To help the pharmaceutical company to better manage the material procurement process flow, the procurement experts at SpendEdge tailored a comprehensive market research methodology. The research methodology involved primary and secondary research coupled with qualitative and quantitative assessments to help the client select new suppliers to purchase in accordance with the company’s internal procurement criteria.

In a short span of five weeks, the material procurement experts at SpendEdge were able to analyze and implement material management solutions to address the uncertainties caused by unpredictable market demands. Their recommendations helped the pharmaceutical company to create appropriate safety stock of raw material that can serve as a buffer against the uncertainties. This reduced their lead times by over 50%. Furthermore, the detailed forecasts and raw material purchasing agreements devised by experts enabled the client to address any potential delays in the material procurement process.

Interested in optimizing budgets for your material procurement process?

Request a free proposal and know how our procurement services can help you reduce excess spend and streamline sourcing processes.

Key Findings

Improvements in the material procurement process helped the pharmaceutical company to maximize the availability of raw materials for internal and external customers. They were also able to minimize warehouse stock of procured raw materials, which reduced their logistics costs for procurement by 35%.

Why is Material Procurement Important?

In recent times, material procurement is considered a strategic function to improve the organization’s profitability. It helps companies to reduce raw material prices and costs,  identify better sources of supply, and reduce lead times. However, material procurement basically depends on two factors: information and supplier relationships. Information can be gained through technology but relationships with suppliers need to be established with time so that products move through the pipeline faster.

The increased quality concerns and regulatory scrutiny is compelling companies to invest in the role of material procurement. Request a free demo and know how our experts can enhance material management for your company.

 

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IR7

Top 3 Procurement Challenges and Solutions Companies Need to be Aware of in 2019

The future of supply chains is not just confined to ensuring reduced price and timely delivery of goods. It is dominated by various other factors such as legal issues, sustainability concerns, and regulatory compliances. This creates the need for companies to utilize procurement services that can enhance the speed, efficiency, and accuracy of their processes. Through this article, we’ll discuss what are the major challenges that companies face while procuring goods and services and why they need procurement services providers like SpendEdge.

Why use procurement services? 

Maintaining domain expertise in every category of spend is still an expensive and difficult task for many organizations. Leveraging a procurement service provider can assist companies to conduct a rapid analysis of an organization’s spend, negotiate with suppliers, and avoid the burden of building an effective procurement infrastructure for non-strategic categories.

At SpendEdge, we understand that not every organization can employ a strategic sourcing process and train employees on sourcing automation tactics and category and supply market assessments. Therefore, our team of experts has highlighted some major challenges that companies face while sourcing good/services and have offered viable solutions that procurement services can offer.

Want to leverage the benefits of procurement services for your organization?

Talk to our experts and know how our procurement methods can be leveraged to design an effective procurement strategy that can suit your business needs.

How can procurement services address top supply chain challenges?

Challenge 1: Complex spend

Every year, businesses make millions of purchases that are either too small to be handled or are too infrequent to be included in a single vendor catalog. For most businesses, such categories are sourced manually using internet searches or emails, increasing the complexity of the process.

Solution

By utilizing strategic procurement services, companies can prioritize categories on the basis of market size and product innovations and provide a comprehensive overview of all efficient suppliers in the market. Companies can even employ online procurement solutions to decrease the complexity of spend.

Challenge 2: Risk

Not only big businesses, but mid-market companies are also becoming vulnerable to various strategic and operational risks in their procurement process. They require a holistic risk strategy that can minimize total risk exposure and enhance their supplier risk management.

Solution

Procurement services help companies with risk mitigation investments and risk transfers. They analyze the suppliers before onboarding them and continuously monitor them to improve supply chain visibility and reduce the risks of working with new vendors. Also, procurement services help companies to evaluate the procurement process and manage procurement risks across various business units.

Devising a holistic risk strategy can be a herculean task for many companies. Request a free proposal and know how our portfolio of procurement services can help you successfully mitigate risks.

 

Challenge 3: Information

Companies sticking to traditional methods can never gain a competitive edge in the market. They need their procurement department to be comfortable with advanced data mining and analysis technique in big data to become market leaders.

Solution

Firms offering procurement services possess the capability to analyze data from multiple sources and prioritize business processes. They help companies to recognize the equipment and applications associated with each business process and provide the needed procurement services.

Want to implement advanced techniques for extracting valuable insights from data?  Request a FREE demo below and know how our procurement services can help you.

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What is the Real Reason for Procurement Companies to Leverage Procurement Solutions?

With cost reduction initiatives becoming a top priority in 2019, most stakeholders have started to scrutinize expenditures more carefully. They are finding ways to better manage costs and expenses. According to a recent study, companies waste as much as 30% of their total expenditures. These expenditures are deemed wasteful as they add no value to the customers or companies. Therefore, it becomes imperative for businesses to have an effective procurement system in place so that they can cut the right costs through strategic reductions that don’t impede their ability to remain competitive in their respective marketplace. Strategic procurement can impact the company’s bottom line, but not every business possesses the resources and expertise to optimize their procurement capabilities. 

Some companies find it quite challenging to manage a budget when unexpected costs arise. They lack procurement strategies that can best identify the alternate approaches for them and provide a realistic assessment of risks. This not only increases the entire cost for businesses but also hampers the efficiency of organizations. Therefore, it becomes crucial for companies to leverage procurement solutions to enhance their capabilities.

At SpendEdge, we understand that procurement can be very complex and cost consuming in many large companies. So, our team of experts has highlighted three major objectives that companies should try to achieve while utilizing procurement solutions to thrive in a competitive marketplace.

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