Tag: spend analysis

US Metal Enclosures Market

US Metal Enclosures Market: Are Your Spend Management Goals Attuned to the Current Market Trends?

In the backdrop of a tumultuous US healthcare industry, the medical devices sector in the US is raging towards a double-digit consumer spend mark. Such a rapid increase in the spend is paving the way for the advent and sustenance of markets such as the US metal enclosures market, which is now making its mark in the business landscape in the US. Currently, the US metal enclosures market is set to achieve a spend growth rate of more than 4%. However, a key question that comes to mind is whether this spend growth rate translates into a favorable procurement scenario for buyers looking to procure such products? Inferences drawn from SpendEdge’s recent US metal enclosures spend analysis clearly says NO!

# US Metal Enclosures Spend Analysis Insights 1

Buyers in the US metal enclosures market are one of the casualties of the ongoing US-China trade war. This statement is reinstated by the fact that the severe supply crunch of steel owing to the increase in tariffs that are imposed on Chinese steel/iron ore imports will have an inflationary impact on the supplier’s production cost of metal enclosures. The US metal enclosures spend analysis hints at an incremental procurement cost incurred by buyers as suppliers are compensating for their recurring production expenditure by increasing the price of the product.

Gain complimentary access to our procurement platform to know more about the procurement best practices and key challenges facing buyers in the heavy metals category. 

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Know how real-time insights into price dynamism can help you in devising effective and informed procurement strategies.

# US Metal Enclosures Spend Analysis Insights 2 

Lack of spend visibility, owing to an uncategorized supply base, is a perennial source of procurement challenge for companies operating in the US metal enclosures market. A majority of buyers are failing to maintain proper co-ordination with the regional supplier base as well as with suppliers from LCCs. A lion’s share of the increasing procurement spend, as predicted by the US metal enclosures spend analysis, can be attributed to this factor.

Discover how real-time US market spend analysis insights can help you to identify newer and better areas to optimize your procurement spend, request more information.

How to Achieve Spend Management Goals in the US Metal Enclosures Market?

Strategy 1: Strategic selection of suppliers will play a prominent role in helping buyers optimize their recurring procurement spend. It is also recommended that buyers partner with distributors who procure metal enclosures sourced from suppliers based in LCCs in APAC, such as South Korea and India. Distributors offer customization services by engaging manufacturers that are located in low-cost manufacturing countries. This allows buyers to reduce their overall procurement expenditure in the US metal enclosures market. However, buyers must ensure that the goods availability and shipment time align with their delivery requirements.

Strategy 2: By leveraging centralized supplier management systems, buyers can attain better communication among their supplier segments. In the long term, it fosters better spend visibility, enabling the buyers to identify areas to optimize their recurring spend in the US metal enclosures market. The adoption of supplier integration technologies will further help buyers to achieve significant cost savings associated with the management of inventories.

Download the free sample copy of the US metal enclosures spend analysis below and know more about our report’s scope and key geographies under focus.

spend benchmarking analysis

Benefits of Spend Analysis: Enabling Companies to Achieve Savings, Optimize Capital, and Reduce Procurement Spend

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the launch of their latest newsletter on the benefits of spend analysis solutions for businesses today. Spend analysis can help companies achieve cost effectiveness and boost process efficiency. It can also help reduce maverick purchasing and helps businesses identify opportunities that are specific to their category.

Achieving Savings of $35M for a Microelectronics Firm

Developing a spend analysis plan to analyze expenditures and increase R&D investments is imperative if you are planning to make investments in mechatronics technologies. A Germany-based microelectronics company was finding it difficult to analyze spend and devise an effective spend strategy to achieve significant cost savings. They also wanted to run an RFP for new suppliers to identify suppliers who would be able to keep up with regulations in the electronics and microtechnology industry.

SpendEdge’s spend analysis solution helped the client to perform a proper supplier spend analysis and categorize their direct and indirect spend. The solution offered helped the client to negotiate the best deals with advanced technology providers. As a result, the client achieved $35 million in annual cost savings

Transforming Finance Operations Through Spend Analysis

Keeping tabs on changing supply chain priorities and managing spend is an arduous task for most companies. Don’t you agree? Read our success story on how we helped a leading medical devices company address concerns about maverick spend.

During the course of this engagement, our spend analysis team offered information on how the client could improve their spend management capabilities and improve ROIs. They helped the client to effectively price their products according to the industry standards and build their presence in the industry.

Increasing Transparency and Commercializing Revenue Models

Wondering how you can reduce unaccounted spend and increase spend visibility? Our spend analysis report recently helped one of the leading automotive companies to compare their spend with that of industry peers and gain granular insights into recent spending trends. The report offered information on how to boost spend visibility and identify potential sourcing opportunities in the automotive industry so that the client could improve organizational efficiency and drive better savings.

With our help, the client was able to implement an efficient spend management process and commercialize their businesses and revenue models to better connect with customers.

Optimizing Capital and Maximizing Process Efficiency by Over 60%

Developing a coordinated post-merger spend management strategy to standardize spend data is crucial while merging with a multi-national Fortune 500 company. Take a quick look at our recent case study to understand how we helped a leading facility management services provider in the US to analyze spend across different categories and enhance their process efficiency.

Increasing cost reduction pressures were compelling the client to analyze their spend data, adapt to a fast-evolving marketplace, and identify potential areas for cost reduction. Our experts adopted a comprehensive four-step approach to optimize their working capital and maximized their process efficiency by over 60%.

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Spend Analysis Solution Helped a Microelectronics Manufacturer to Improve Spend Visibility and Achieve Annual Savings of $35 Million

Most organizations aim at increasing profitability and optimizing cost. In fact, a cost-effective procurement process can help them achieve significant savings. However, organizations need to analyze their spend before cutting unnecessary costs and turn to spend analysis to achieve long-term savings.

Challenges Faced

The client is multi-billion microelectronics manufacturer headquartered in Germany. Owing to the ongoing digitalization of industrial production and increasing use of microelectronics in Industry 4.0, the client decided to develop a spend analysis plan. The plan aimed to assess the organization’s expenditures, increase R&D investments, and run an RFP for new suppliers to address the demands of the electronics and microtechnology (E&M) sector. However, the client’s spend data was not up-to-date and they were engaged with strategic activities such as developing mechatronics technologies to make Industry 4.0 a reality.  Naturally, the client needed to engage with a company that could help them analyze spend data, identify risks associated with current and new suppliers, ensure regulatory compliance and manage complex contracts.  By realizing their need to leverage procurement spend analysis services, the client chose to partner with SpendEdge to address their spend related woes.

Wondering how you can analyze the current state of spend and achieve savings through spend analysis? Request a free proposal and access our portfolio of spend analysis solutions for free. 

Our Approach

The experts realized that the client wanted to transform data into actionable information and devise an effective spend strategy. Therefore, they obtained data from different sources and consolidated it into a central database.  They cleansed the data, involved suppliers, and grouped purchases made from same suppliers to conduct a proper supplier spend analysis. This helped them to categorize their direct and indirect spend and determine where the money was being spent. The improved spend analysis process helped the client to negotiate the best contract deals per supplier.

SpendEdge’s experts developed a detailed commodity structure, which was tailored to the client’s requirement, for both direct and indirect spend categories and then mapped the spend to the correct category based on vendor names and product descriptions. The spend analysis solution delivered enabled the client to gain detailed insights into the spend category and devise strategies to improve savings in those categories.

Conducting spend analysis requires companies to collect and analyze a huge amount of data?

Request a free demo from our experts and gain detailed insights to improve the process.

Results

The spend analysis solution offered helped the client to:

  • Devise spend analysis template and understand the current state of spend.
  • Identify suppliers who can provide top-class technological performance.
  • Adopt the best contracting practices and negotiate the best deals with advanced technology providers.
  • Gain detailed insights to determine the amount spent on research and development annually.
  • Achieve an annual cost savings of $35 million in annual cost savings for the overall spend.
  • To gain detailed insights into the spend analysis solution offered, request for more information.

Benefits of Spend Analysis Solution

Improve spend visibility: Leveraging spend analysis solution allows companies to gain valuable information and greater visibility on money spent on different functions. It helps analyze expenses for purchasing materials/services and costs incurred by suppliers and helps companies to formulate an effective spend strategy.

Enhance category level analysis: It helps companies to adopt a category management approach and analyze data spend per category. It further helps organizations to divide the categories into sub-categories and perform a more detailed analysis, providing an overview of overall spending and enabling better cost control.

Improve processes: Companies leveraging spend analysis solution can better utilize spend data to make informed decisions about how processes can be improved within the organization. Also, they can identify opportunities for process improvements and significantly improve ROI. 

Want to improve your spend analysis process and boost your savings? Get in touch with our experts and leverage our solutions!

spend management

Boosting Process Efficiency and Improving Spend Management for an Electronics Company

The Business Problem

The client – a global electronics manufacturer with operations spread across different Asia-Pacific regions was witnessing profit decline amid mounting macro uncertainties. The slower revenue growth in the emerging markets and the rising US-China trade tensions were compelling the client to improve spend management and mitigate challenges impacting the cost of finished products. The need to gain visibility into the spend and drive organizational value forced the client to engage with SpendEdge. The objectives they were looking to achieve through this engagement were:

  • Centralize legal entities into one procurement function and unify processes to deliver bottom-line savings.
  • Reduce capital expenditure to avoid excess inventory and quality issues impacting the spend and the cost of finished products.

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How companies can reap the benefits of tail spend management

What is tail spend management? 

Tail spend is any spend of an organization that is not actively managed in all the spend categories. In other words, it is the spend incurred by a company, but not accounting for or managing strategically through the procurement policy of the company.  It helps in managing the organization’s spend activities effectively and thereby they can optimize their supply chain and procurement function. Some common examples of tail spend include- printing and packaging, marketing services, office products, gifts and premiums, and temporary labor. This may have an impact on the company’s financial performance due to its impacts on the cost of goods sold (COGS) and SG&A. Tail spend management framework help companies to unlock more value from their tail spend by increasing spend under management and reducing operational costs.

Why is tail spend management important? 

Companies are under constant pressure to reduce cost and attain sustainable cost-saving opportunities. Tail spend management solutions are the answer to combat this business challenge. Tail spend management solutions help businesses to better understand spend coverage and gain better spend visibility. This helps identify cost-saving opportunities. Business risks can be mitigated, and the organization’s supplier base can be optimized using tail spend management. Furthermore, it also plays a major role in effective spend management by easily identifying the maverick spend and consequently preventing scams.

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Spend Analysis : Assessing the Current Spend and Improving Supply Chain Efficiency for a Medical Devices Company – SpendEdge

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

The client is a leading medical devices company, specializing in the development of medical devices, laboratory instruments, and diagnostic products. The company supplies devices to hospitals, laboratories, and clinics worldwide. The company has ingrained its place as a leader in the medical devices market.

The Business Challenge 

The future looks sharp for the medical devices industry. With global economic growth, innovations and an aging population that has a growing need for healthcare, revenue for medical devices is poised for growth. However, in this turbulent environment, companies that can shift their supply chain priorities and better manage spend will be able to deliver significant value. Moreover, the rising need for supply management and strategic cost management have urged players in the medical devices manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical devices manufacturing space to identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. The spend analysis solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.

The client, a renowned medical devices company was facing challenges in reducing the cost across the supply chain and managing their tail spend. While public spending has become endemic, the client realized the need to drive more competitive pricing. Moreover, the client’s objective was to adopt spend analysis strategies to identify and optimize their spend areas. Additionally, the client needed to streamline their supply chain management and subsequently maximize profits by leveraging SpendEdge’s spend analysis solutions.

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Spend Management Solutions: A Holistic Guide for Procurement Companies

“Only a truly integrated spend management solution can fetch value for your company and result in intelligent procurement.”

Limited supply chain visibility, poor supplier transparency, new regulations, spend creep, contract management, risk mitigation, and the growing need to do “more with less” are some of the key challenges that procurement companies face. Spend creep has become one of the biggest challenges for companies today as companies are spending extensively to stay ahead of the competitors.

Unnecessary spend happens when businesses buy additional items, products or services, from suppliers that aren’t needed. Also, it happens because of misguided bid management process, weaker supply chain management systems, and lack of auditing and spend analysis. Therefore, procurement professionals need to have the right spend management solutions to tackle these challenges efficiently and effectively.

At SpendEdge, we understand the impact that spend management solutions can have on your business. And to help companies identify latent opportunities to devise strategic plans to minimize their expenditure in every category, our team of experts have provided a comprehensive guide to spend management.

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Why is Spend Analysis a Necessity for Reducing Facility Management Costs?

The market for facility management services is a multi-billion dollar industry in the U.S. alone. Facility management involves the integrated management of multiple and interdisciplinary technologies, personnel, systems, and processes. The ultimate goal of facility management is to promote an efficient and collaborative environment to meet and fulfill the key objectives and mission of an organization. However, this requires business owners to invest in strategies that are going to allow their facility management personnel to work with large sets log compliancy information, asset maintenance information, and every process through the facility management lifecycle. One of the primary challenges involved in facility management is that as more data points enter a facility, it becomes harder to ensure that accurate asset maintenance records are kept. Due to such factors, companies in the facility management industry are unable to reduce risks and increase operational control.

Key facility management challenges

Efficient facility management involves constantly tackling critical issues every day in the face of a host of obstacles. They are also responsible for bringing together a multitude of distinctive elements. Diligence and flexibility in handling facility management not only defines their success but also that of an entire company. Both large and small businesses must devote a considerable amount of their capital and energy to ensure their facilities are properly maintained and are prepared to meet the challenges of the future.

Cost management

Every instance of demand placed in a facility management enterprise has a cost associated with it. This includes costs incurred on repairs and maintenance, hiring of staff, inventory and supplies, and safety and security. We at SpendEdge, help clients in facility management organizations track cost expenditures, including detailed historical analysis, to allow for proper administrative reporting and reduction of operational costs.

Resource management

Another key facility management challenge is the need to rely on many resources to operate the facility efficiently. This includes both full and part-time staff. It also requires different types of service providers. Furthermore, due to limited budgets, facility management teams are expected to deliver more at lower costs. In this case, facility management companies are left with no choice than to identify their optimal staffing requirements and maintain a constant flow of communication between the team so that they are aware of how to increase the overall productivity and improve efficiency.

Meeting compliance guidelines

It is essential for companies to ensure the statutory regulations for managing their documents. This requires a process to ensure that data is stored correctly. In order to remain compliant, it is also important to stay updated on the legislative changes. Facility management professionals often face problems associated with inadequate record keeping that do not meet the expected compliance standards.

 

One of the best ways to resolve facility management challenges is to bring in a professional and competent solutions provider to help you carry your load. SpendEdge has been helping facility management professionals across the world to build strategies that increase their profits while staying within the budget. Contact us today!

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Cutting facility management costs: What businesses must do


As businesses face the need to utilize state-of-the-art infrastructure to remain competitive, controlling facility management spend becomes more important than ever before. Strategic planning is critical to align capital spending with budgets and ensure proper allocation of resources in facility management. While budgets are typically controlled by individual departments within the organization, there are certain steps every facility management professionals can take to contain costs. Here are five ways facility management can control the overall spend:

  • Purchase Pre-owned, Refurbished or Rental Equipment
  • Preventative maintenance of existing equipment can help reduce operating expenses and create a safer work environment
  • Research the supplier and the equipment through product reviews and testimonials for optimal prices and service.
  • Organize data and analytics to gain better visibility of expenses across the organization and enable the allocation of resources in the most efficient manner
  • Leverage spend analysis to get all the possible benefits from the company’s current spend cube

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