Tag: sourcing and procurement services

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Top 4 Challenges Faced by Buyers in the Procurement of Retail Analytics Software

The retail industry generates a massive amount of data today including warehouse and inventory details, customer information, and transactional data. The retail sector has been using data analytics on a relatively small scale. Although the traditional analytics provided retailers with limited insights, the new technologies combine business intelligence and customer intelligence with raw transactional and behavioral data to generate derived measures. Today, the most advanced retail analytics software can assist with inventory planning, streamlining retail POS, shelf management, generating customer insight, customizing promotions, demand planning, and sourcing. The recent procurement market intelligence report from SpendEdge forecasts the market to grow at an impressive CAGR of 21%. However, leading retailers are facing major procurement challenges in integrating big data analytics for generating insights.Request Free Sample

Procurement Challenges in Retail Analytics Software Market

Lack of Expertise to Manage the Software

Retail analytics software’s such as NetSuite (Oracle), Tableau, RetailSTAR (CAM Commerce Solutions), SISENSE, and SAS Retail Analytics have interface and dashboards that requires expertise to operate. Most retailers do not possess such competencies or skills and would need an IT professional to manage the retail analytics solutions, thereby increasing the cost. To tackle such issues, major retailers are partnering with managed service providers to assist them with the implementation and functioning of the software.

Data Integration Challenges

A single retail store generates data across multiple channels such as warehouse, inventory, POS, and store management. Combine this with numerous retail outlets spread across vast geographies; retailers are faced with problems to integrate all different kind of data to derive meaningful insights. Also, most of the retail analytics software specialize in a specific area, which makes it even more difficult to integrate data from different sources across the retail supply chain. Majority of the retail analytics companies provide customers with a free trial before they move on to full version. Retailers can test the software out for compatibility with multiple data points before full-fledged implementation.

Data Identification and Utilization Challenges

Although retail analytics is capable of doing advanced nature of tasks, the final insights derived will highly depend on the nature of data provided as inputs. The data captured by retailers may vary, which makes it essential for retail analytics software to identify data points accurately. Although most retail analytics software providers assist buyers in filtering and utilizing data for insights, they might later find it difficult to judge the data insights provided by the solutions. It is a good practice to insert clauses in the contract requiring suppliers to train their employees.

Challenges in Alignment of Business Functions and Processes

With such high levels of volume, variety, and velocity of data being produced, buyers must automate business processes to ensure such data is available for effective analysis. However, due to the prevalence of legacy systems, buyers may face difficulty in automating different business processes. To tackle such issues, retailers invest in facilities and systems that can provide real-time data recording capabilities to implement analytical solutions.

 

Read more about the top procurement challenges in the retail analytics software market along with predictive analytics in retail, big data analytics, pricing insights, cost-savings opportunities, and supplier selection criteria in SpendEdge’s upcoming report on the global retail analytics software market.

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Game-Changing Trends in the Computer Aided Design Market

Long before computer aided design (CAD) went mainstream, any design or prototype development work had to be done manually. It was a tedious and time-consuming process which had a high rate of errors thereby increasing the design cost. The advent of computer aided design came as a boon for all designers, engineers, architects, and artists. The CAD software has almost replaced all the paper-based drawing. Since it simplifies the entire design process by digitizing it, even small-scale designers are making use of free computer aided design software to get their task done. Although the CAD market is growing at a steady rate of 7%, the emergence of new technologies is expected to drive the widespread adoption of such computer-aided technologies.

Request Free SampleTop Trends in CAD Market

IoT Capabilities in Industrial Applications

The increasing adoption of IoT in industrial applications is increasing accuracy and efficiency of machines. The rising adoption of IoT in industrial machines enables the designers to get direct insights about the performance of designed components and thereby aiding them in the innovating more compelling designs. For instance, Fusion Connect, a non-coding IoT cloud service by Autodesk, leverages connection of the machines with the CAD software package for enabling better analysis, insights, and management of products.

VR Capabilities in CAD

VR technology can be looked onto as an evolved form of CAD designs. While CAD provides the design blueprint, VR technology can recreate the blueprint in the real life-like virtual projection of the object. Additionally, it enables designers to scale various components of design concerning other virtual objects. The VR technology also significantly reduces the cost of production involved in the prototyping stages.

Emergence of 4D CAD Software Applications

4D CAD or 4D BIM is a big leap in the field of computer-aided technology. Such blueprint drawing software enables integration of scheduling tools in the computer aided design software application itself. Such software application improves the decision process by facilitating rapid prototyping and assisting in the analysis of alternative schedule proposals.

Increasing Industry Consolidation

The global CAD market landscape is witnessing dynamic shifts due to constant innovation in techniques and technology. In a bid to remain competitive, CAD vendors are entering into mergers, acquisitions, and integrations with other organizations. Such agreements help the current CAD vendor to acquire the expertise of other existing vendors and create unique competencies and improve their core CAD platforms. For instance, Autodesk has acquired numerous small players to integrate new technology and knowledge assets in its offerings.

Read more about the top trends in the computer aided design market along with key suppliers, supply market landscape, strategic purchasing, pricing trends, and procurement insights in SpendEdge’s upcoming report on the global computer aided design market.

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SpendEdge Announces the Launch of a New Procurement Market Research Report on the Global Wheat Market

A rise in the consumption of wheat in the form of flour due to its various health benefits such as improves body metabolism, controls obesity, and lowers cholesterol level drives the global wheat market.

LONDON: The strategic procurement research report on the wheat market is an integral part of SpendEdge’s agro commodities and raw materials category portfolio and offers an in-depth assessment of the current supply market, key factors influencing sourcing and procurement decisions, pricing models, and procurement best practices. It also offers insights into the major supply market insights, demand-supply shifts, and key market dynamics to help sourcing and procurement experts make smart strategic procurement decisions.

The global wheat market is fueled by the constantly increasing demand for wheat as a staple food and wheat flour in various food products such as noodles, pasta, and bakery products is driving the global wheat market. Furthermore, demand for wheat as animal feed is projected to increase, majorly in countries such as China, Russia, and the EU.

“Purchasing managers must collaborate with suppliers who commodity-procurement strategies that outline the actions to be followed in managing the commodity for the long term,” says A Kowshik, an agro commodities and raw materials procurement research specialist at SpendEdge.

Wheat is a major agricultural raw material for various food products such as wheat flour, noodles, bread, and pasta. It has the risks of carrying pathogens such as E-Coli and Salmonella all the way to finished flour, which is provided by suppliers to food companies.

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This procurement report on the wheat market offers insights on:

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

 

 

Get unlimited access to all our reports. Our 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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Sourcing Analysis Helps a Car Accessories Manufacturer to Streamline Procurement Efforts

Category Overview

The global car accessories industry is expected to witness significant growth in the coming years as it is primarily driven by the increasing demand for cars and increasing inclination towards vehicle customization. According to SpendEdge’s specialists, it has been noted that the high cost of quality car accessories is one of the factors restricting the growth of car accessories industries as advanced technologies are pricier than the conventional accessories. As a result, many car accessories firms have started adopting strategic sourcing studies to standardized, centralized, and streamline their procurement process.

Moreover, the strategic sourcing studies offered by SpendEdge, help car accessories manufacturing firms decrease turnaround time for their procurement processes.

The Procurement Pain Point and Insights Offered

A leading car accessories manufacturing firm wanted to achieve effectiveness and efficiency through standardization, centralization, and spend management capabilities while tracking key savings metrics. They also wanted to establish a flexible and fast resource deployment model and improve the productivity of internal operations. Furthermore, the client wanted recommendations on metrics and standardized reporting tools. request free proposal

To cater to the specific category requirements of the client, the strategic sourcing specialists at SpendEdge carried out a blended research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies.

During the course this strategic sourcing study, the client was able to achieve a centralized and standardized procurement process. Additionally, the client was recommended tools and processes to establish a quick strategic procurement process. This helped the car accessories manufacturer achieve significant cost savings.

Key questions answered in this strategic sourcing study include

strategic sourcing

Business Outcome

The strategic sourcing study helped the client create and implement processes and tools to identify and leverage opportunities for strategic sourcing. Additionally, the client was able to significantly streamline their firm’s procurement efforts. Furthermore, the client was able to streamline numerous operations across their suppliers and reduce costs.

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E-Sourcing: An Essential Component in Devising a Good Sourcing Strategy

E-sourcing is simply the digitization of the sourcing process which involves consolidating proposals, quotes, and e-tenders from various suppliers. Traditional sourcing processes are time-consuming and tedious and are unable to handle a large volume of information. As a result, sourcing of goods and services is carried out with limited available information and is based on the relationship with the supplier. However, the advent of modern technology has changed this trend as organizations have now realized the cost saving potential of a good sourcing strategy.

Implementation of an appropriate e-sourcing tool can help optimize productivity and lower annual spends in the following ways:

More Data Leads to Informed Decision Making

Data and information on supplier prices and offerings are easily recorded within the e-sourcing application, which also facilitatesGet more info digital quotations, catalogs, and e-tenders. A procurement manager is equipped with vast information to base his decision on as it enables him to invite multiple bids from different suppliers, analyze product and price offerings, and contract terms of multiple suppliers. The data collection process should start right from the spend analysis, which gives the procurement manager information on most important categories and best cost saving opportunities. This paves the way for e-sourcing project selection by evaluating top opportunities with regard to organization goals and Time to Value (TTV).

Cost Savings and Improved Efficiency

Access to a large number of suppliers, analysis of their offerings, and process digitization helps organizations maximize on cost-saving opportunities. It also speeds up the procurement process by reducing the time for the tender process, reducing the person hours required for sourcing and procurement activities, and eliminating lengthy paperwork.

Improvement in Supplier Relationship

E-sourcing provides transparency in transactions between buyers and sellers as suppliers can have a glance at all tender opportunities with all the details listed. The communication delay is eliminated as suppliers are fully aware of all the bids and tenders, which are directly processed through the portal. Since e-sourcing eliminates all geographical barriers, procurement managers can look forward to suppliers from much larger geographies.

Better Compliance and Risk Reduction

Digitization and systematic approach of e-sourcing eliminates lengthy paperwork for contract compliance adherence – facilitating internal audit. With the help of e-sourcing, procurement managers can create templates for sourcing activities, which ensures adherence to policies and conditions.

A purchasing manager is presented with a vast amount of data and information for his sourcing needs. It paves the way to devise a better sourcing strategy by helping the purchasing manager to decide on the appropriate RFx document.

To know more about e-sourcing and how it can help in effective procurement:

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Related Articles:

  1. Building A Strategic Partnership Between Procurement and Marketing
  2. Strategic Sourcing and Supply Market Intelligence – Best Friend’s In The Making?

 

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Market Intelligence Study – Assessing and Streamlining the Sourcing and Procurement Process

The latest procurement market intelligence study by SpendEdge on the sourcing and procurement process for a leading technology company helps streamline the sourcing and procurement process for major spend areas and provides on-going support to its category managers.

Sourcing and procurement – market at a glance

Procurement focuses on the logistics of acquiring materials whereas sourcing is to find the best and cost-effective suppliers for the resources. Striking a perfect balance between sourcing and procurement will lead to a successful service delivery. With sourcing playing a key role in the procurement process, market intelligence experts recommends setting up strategic sourcing and procurement groups to achieve a streamlined supply chain operation. Using technology as a tool will help organizations ensure efficient structure in their workflow and process systems. Productive sourcing and procurement functions will help companies define, measure, and raise their performance to match the competition in the market.

Growing demand for automation in the sourcing and procurement process is encouraging companies to adopt innovative technologies. Organizations are using advanced software technologies to automate sourcing activities such as invoice processing, supplier evaluation, supplier-bidding, supplier negotiation, supplier selection, and other sourcing related activities. Automation will help reduce manual errors, costs, and offer visibility in the end-to-end supply chain management systems.

Domain specific sourcing and procurement services

The market intelligence study addresses issues related to specific domains in an organization such as MRO, facilities, IT, and marketing-related spend areas. Obtaining information on industry best practices regarding how these categories are managed by best-in-class market players will help improve the overall process effectiveness of the company. Moreover, analyzing the current category sourcing and procurement strategies will allow enterprises to make well-informed business decisions.

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Emergence of mobile sourcing technology

Implementation of mobile sourcing technologies will help organizations to manage end-to-end sourcing process. Using mobile technology will increase mobility in their transactional process and help companies design superior pricing and supplier engagement models. Accessing sourcing related information will become easier through mobile devices and will help companies meet their long-term corporate goals to remain competitive in the marketplace.

What solutions SpendEdge offer to businesses

The procurement market intelligence team at SpendEdge performs a gap assessment to identify the key areas of improvement and offer insights on redefining the sourcing and procurement processes. The solutions offered includes:

  • Improve process effectiveness and strategies based on the best benchmarking standards in the industry
  • Offer insights on major spend areas and provide on-going support to its category managers
  • Identify cost saving opportunities through assessment of current spend practices and improvement areas
  • Improve process management through RFX support and supplier negotiation
  • Implement category management strategy for the vital spend areas, and capitalize on supplier performance through implementation of supplier relationship management

Read our complete case study titled – Procurement Market Intelligence Helps a Leading Technology Company

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