Tag: spend analysis and benchmarking

IR33

Spend Analysis Engagement: Offering Comprehensive Spend Visibility for a Leading Organic Chemicals Manufacturer

Engagement Overview:

A chemical industry client wanted to aggregate raw spend data from multiple sources across the organization including – ERP, procurement, accounts payable, and so on. To gain detailed visibility into their spend patterns, the organic chemicals manufacturer approached SpendEdge to devise a comprehensive approach to spend management by implementing spend analysis based solutions throughout their global supply chains.

A detailed quantitative analysis of various categories within the supply chain was carried out identify spend patterns and benchmark the best practices to be followed. Spend analysis also offered the foundation for making more informed business decisions. Also, the constant monitoring of variables that could possibly impact organizational spend resulted in the development of a robust spend management strategy. The variable included – consolidation within the sector, entry of new players, technological request proposal developments, and macroeconomic factors affecting the growth of the organic chemicals market.

About the Client:

A multinational company specializing in the manufacturing of organic chemicals. The client is a leading player in the chemical industry with several well-established subsidiaries operating in over 40 developed economies.

Business Challenge:

The organic chemicals manufacturer was facing difficulties in assessing spend patterns.

How did SpendEdge Help the Client?

  • Step 1: Identification and collection of spend data from several resources

Our spend analysis experts followed a structured approach to gather and consolidate spend data from different business units into a central database. It included data from sources like accounts payable, e-procurement systems, and general ledgers.

  • Step 2: Benchmarking of standardized processes

Implementation of spend management tools helped the client to benchmark best practices to be followed.

  • Step 3: Devised a three-step approach to analyze and group spend data

The scrupulous approach helped in the constant monitoring of spend data to identify potential savings opportunities and ensure adherence to contract terms.


Key questions answered in this spend analysis study include:

Organic Chemicals


Benefits of the Engagement:

Our spend analysis solution helped the organic chemicals manufacturer to break down the organization’s data silos and transform the gathered spend and contract data in an efficient and cost-effective manner. Our team worked as an extension of the organic chemicals firm to filter out irrelevant information and extract precise content to enhance visibility across various spend categories within the organic chemicals manufacturing space.

Why incorporate spend analysis solutions?

It is essential for organic chemicals manufacturing firms to break down their respective data silos to better identify collaborative procurement opportunities. However, since it is not possible to implement a common ERP or accounts payable system with same data structure throughout independent organizations, spend analysis offers an efficient and effective means to reach the desired result by aggregating data from several sources to provide the desired visibility.

Our Findings:

Procurement teams that effectively use spend analysis will be able to better analyze their spend patterns, which will eventually result in higher returns and superior business outcomes. Moreover, with the recent focus on cost reduction, leading organizations across sectors are focusing on enhancing their spend management capabilities.

Spend analysis is one main aspect of spend management that can have a profound effect on the supply chain and the process of analyzing an organization’s spend pattern. A spend analysis engagement offers enhanced visibility into an enterprise’s procurement spend, which subsequently allows the organization to consolidate both its suppliers and its spending.


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IR3

Leveraging Spend Analysis Helps a Leading Pharmaceutical Products Manufacturer Improve Spend Efficiency

Overview of the Pharmaceutical Products Market

Pharmaceutical products are commonly referred to as drugs or medicines and form a fundamental component of both traditional and modern medicine. The pharmaceutical products includes companies that are responsible for the production, development, and marketing of drugs. The growth of the pharmaceutical products market can be attributed to the rise in aging population. Moreover, with the growing global middle-class population and rising per capita expenditure on medicines, the growth opportunities for pharmaceutical products has increased. Also, the regional demand for pharmaceuticals may differ based on the developments in emerging economies.

In the coming years, the global pharmaceutical products market is expected to proliferate owing to the increase in request free proposaltailored R&D and product portfolio changes to meet emerging markets’ healthcare needs.

The Business Challenge and Journey

The client, a well-known pharmaceutical products manufacturer, was looking at leveraging SpendEdge’s spend analysis solution. The client was facing several issues in analyzing their spending patterns. Also, instabilities in their supply chain increased their maverick spend and supply chain risks. The client wanted to commission a spend analysis engagement to improve their spend efficiency and optimize customer base. Additionally, they also wanted to identify and mitigate risks to overcome substantial financial losses.

To identify challenges in the supply chain functions, the spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the pharmaceutical industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

Why should you leverage spend analysis?

In today’s economy, spend analysis is gaining respect as a potent weapon in the battle to squeeze new savings out of the procurement processes of various business segments. Spend analysis enables organizations to reduce inventory, improve sourcing cycle time, and assists in long-term planning and economic forecasting. It also provides a realistic picture of future spend requirements based on the forecasted data.

Fundamental questions answered in this spend analysis study include

Pharmaceutical Products


The Result

SpendEdge’s spend analysis solution offered meaningful insights that enabled the pharmaceutical products manufacturer to identify the potential bottlenecks in the supply chain. Also, the solution enabled the client to develop a strategic sourcing model to reduce supply chain risks and establish their presence in the pharmaceutical industry. It also helped the client in analyzing and evaluating the current state of their purchasing practices and implement strategies to improve their spend efficiency. Implementing spend analysis eventually led to improvements in compliance, reduced cycle times, and uncovered maverick spend.

Future challenges and opportunities

  • Patient-centric healthcare: Advancements in technology are driving a shift towards patient-centric healthcare, as evidenced by wearable biometric devices and telemedicine. This has enabled the patients to take a more active role in any treatment plan their doctor may prescribe. It also offers several growth opportunities for companies in the pharmaceutical industry to reach the consumer through wearables and other devices.
  • The growth of biosimilars: The growth of biosimilars will present competition for biologics and represent significant savings to the consumer base. They also present new opportunities for companies in the pharmaceutical industry and those who excel at marketing biosimilars within their product range stand to gain an edge over their competitors.
  • Policy reform: Any changes to healthcare with a new presidential administration will undoubtedly have an impact on the pharmaceutical products manufacturing industry. However, the challenge for players in this sector will be to enforce changes while maintaining a steady market growth.
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IR24

Spend Analysis Solution Helps A Renowned Fashion Retailer Benchmark Their Performance Against Market Developments

Overview of the Fashion Retail Industry:

The fashion retail industry has witnessed several fascinating changes as well as challenges in the past few years; these are the primary indicators of the evolving fashion retail market. In order to harness the concomitant benefits, the challenges associated with these changes need to be addressed most efficiently and prudently. The most critical factor that determines the success of fashion retailers lies in their ability to gauge the retail industry trends in accordance with the consumer’s purchasing decisions. Also, the increase in disposable incomes, exposure to international events, and the rapid changes in the request free proposallifestyle of the global population are driving the changes in the consumer purchase behavior.

Let’s take a look at the key retail industry trends that are shaping the future of the global fashion retail market:

  • Application of technology: Rapid advancements in technology have brought about several changes in various sectors including the fashion retail segment. In a world that is rapidly adapting to the evolving technological changes, fashion retailers have to ensure that they deploy the right technology to enhance their business efficiency. Technology also has great potential for attracting consumers to retailers irrespective of the format.
  • Environmental concern: The aspect of green marketing will ramp up the retailer’s vigilance on the environmental friendliness of the company. Eco-friendliness is also a critical performance metric for retail organizations across the globe.
  • Customization of product portfolios: The success of any retail firm lies in its ability to attract consumers belonging to different socio-economic strata. This necessitates excellence in product packaging and practical structuring of product portfolios.

Though several such factors are favoring the growth of the global fashion retail sector, they also give rise to challenges related to effective spend management. To overcome such difficulties, leading players in the fashion retail industry are now leveraging spend analysis to devise and implement better sourcing strategies.

The Business Challenge and Journey:

The client, a leading player in the fashion retail industry with several international business units, was looking at developing robust spend analysis capabilities. Not surprisingly, the fashion retailer found itself battling several issues that arise while employing acquisitions and mergers as a growth strategy.

Moreover, the company’s sourcing executives recognized the tremendous scope for streamlining their processes to achieve cost savings in indirect and MRP spend. As such, they were looking at reducing their maverick spend and increase their net income. Also, the client was looking at setting industry-specific benchmarks to assess their performance against the market developments.

To identify challenges in the supply chain activities, the spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the fashion retail industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

Why should you leverage spend analysis?

SpendEdge’s spend analysis offers end-to-end solutions that reduce the overall purchasing costs and enhance the value of supplier relationships. Also, the spend analysis data will help organizations in improving their business processes to increase the overall efficiency.

Spend management acts a guide for firms to devise standardized procurement processes. Therefore, it’s essential for every organization to leverage spend analysis and gain a better handle on its supply chain processes. Furthermore, implementing the best practices in spend management provides an extra boost to increase the company’s profit margins.


Fundamental questions answered in this spend analysis study include:

Fashion retail

The Result:

SpendEdge’s spend analysis solutions offered relevant insights that helped the client to develop robust sourcing strategies and cut down on maverick spend. It also assisted them in optimizing their working capital by identifying categories and suppliers with lower-than-policy-level payment terms that offer a great starting point for freeing working capital. Moreover, spend analysis solution provided valuable insights that helped the client in identifying price arbitrages. Our solution also assisted them to benchmark their performance against market developments to ensure that they perform well and keep up with the market developments.


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IR29

Category Market Intelligence Assists a Renowned Biosimilar Drugs Manufacturer to Understand the Competitive Scenario and Effectively Strategize their Decision-making Process

Overview of the Biotech Industry

The global investment in biotechnology has increased consistently, owing to the growing demand for medical applications that offer cost-effective care for the aging global population. To establish their presence in this competitive environment, prominent biotech companies are planning to invest heavily in advanced medicines such as biosimilar drugs to combat chronic diseases such as cancer and diabetes. The cost of biosimilars is 10-30% lesser than their parent products; thus, compelling businesses to invest highly in research and development to diversify their business models and offer reliable and cost-effective services to the customers.

Although biosimilar drugs are gaining traction among the end-user segments, several factors may hinder the growth of the industry. They include:

  • Rising regulatory concerns: In recent years, biotech companies have been compelled to comply with the regulatory guidelines set forth by the Food and Drug Administration. With the fluctuating changes in regulatory requirements, it becomes necessary for the biotech companies to stay relevant and keep-up-to-date with the legislative changes and ensure that they meet all the requirements.
  • Contract manufacturing: With the demand outpacing the production capabilities, several biotech companies have started outsourcing their production capabilities to reduce capital and outlay costs. However, companies face several uncertainties when it comes to meeting the quality standards while ensuring consistency in their product offerings.
  • Innovations: The intense competition in the biotech industry is augmenting the need to stay relevant and keep pace with the latest developments. Moreover, developing products is an expensive and time-consuming affair and requires high investments.

With the increasing competition in the biotech industry, biotech companies are facing the need to invest highly in their technical capabilities to reduce the risks associated with the supply and further ensure quality in their product offerings. To tackle challenges and bridge the demand-supply gap, biosimilar drugs manufacturers should also understand who their target audiences are and their preferences toward the products.request free proposal

The Business Challenge and the Solution Offered

A renowned biosimilar drugs manufacturer wanted to understand the current market scenario and analyze the latest trends and developments in the market. The biosimilar drugs manufacturer wanted to gain timely and relevant insights into the competitors, their product offerings, and devise an effective market plan to meet the growing preferences of the customers. With the help of an effective market intelligence solution, the biosimilar drugs manufacturer wanted to gain information on the cost and the market dynamics including raw material prices, indirect spend, and logistics expenses.

To identify the early warning signs of potential problems and mitigate potential risks in the supply chain, the procurement experts at SpendEdge carried out an extensive research. The methodology focused on interviews and discussions with prominent stakeholders in the biosimilar drugs manufacturing space. The experts also compiled information across various secondary sources to gain robust and predictive procurement intelligence.

The market intelligence solution offered by SpendEdge offered insightful ways for the biosimilar drugs manufacturer to assess the current market dynamics, drivers, and challenges. The firm was able to create a SWOT analysis to identify the barriers, opportunities, and market trends and devise effective procurement best practices to mitigate these potential risks.

Fundamental questions answered in this market intelligence study for biosimilar drugs include:

SP00


The Results

The engagement offered by SpendEdge helped the biosimilar drugs manufacturer gain a deep-dive knowledge on the supplier pricing, the cost structure, and the technology landscape. The category market intelligence engagement also helped biotech products manufacturer achieve operational efficiency while addressing the supplier diversity for the products offered.


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IR20

SpendEdge’s Spend Analysis Helps a Prominent Client in the Insurance Industry Reduce Maverick Spend and Improve Savings

Overview of the Insurance Industry

The insurance industry plays a pivotal role in the functioning of the economy, owing to the amount of premium it collects, the scale of investments, and the economic role it plays in covering potential risks. Amid tightening regulations and low investment yields, renowned companies in the insurance industry are planning to redefine their business models to achieve sustainable growth and enhance their profit margins. The firms operating in the insurance industry are further planning to tackle the mounting pressures by focusing on developing new products, sales channels, and coverage areas. The growth of the insurance industry can be attributed to factors such as rising standards of living and increasing insurance coverage needs.

Although the insurance industry is witnessing promising growth, several factors may hinder the growth of the industry. They include:

  • Disruptive technology: With the relentless growth in innovations, new technologies are disrupting the traditional broker model. It is estimated that smaller companies are more vulnerable to technology disruption and responding to the emerging changes effectively. Moreover, insurance companies are facing the need to include foundational shifts in their operating models and underlying architecture to ensure flexibility and agility in their process.
  • Aging workforce: The average retirement age of the employees has increased; therefore, it becomes a challenge for the companies a large group of employees retires at once. To keep pace with the growing demand, insurance companies should increase their investment in talent acquisition to ensure stability in leadership, production, and client servicing.
  • Regulations: Prominent companies in the insurance industry are facing the need to operate in the fluctuating regulatory jurisdictions and comply with these changing rules. Consequently, organizations are facing the need to improve their capital requirement and transparency of their existing process while keeping in line with the compliance requirements.

While companies in the insurance industry are working towards the attainment of their goals, it becomes necessary for the insurance companies to keep track of their resources to stay relevant and updated with the technologies. To understand the growth prospects and stay on par with the changing consumer behavior, insurance companies need to keep track of their expenses through a robust spend analysis solution.request free proposal

The Business Challenge and the Journey

A prominent insurance company wanted to counter the challenge of inefficient management and gain better visibility into the business spend. The insurance company also wanted to manage their organizational spend and identify critical saving opportunities. With the help of spend analysis, the insurance firm wanted to gain accurate, consistent, and detailed visibility and identify the savings opportunities to accelerate decision making. The primary concern of the insurance company was to identify the potential bottlenecks in terms of savings leak and purchasing overlaps.

To achieve sustainability in the solution offered, the procurement experts at SpendEdge carried out interviews and discussions with prominent stakeholders in the insurance industry. Furthermore, to identify insightful ways to analyze business behavior for the insurance company, the experts further compiled information from sources such as trade shows, company presentations, and industry forums in the insurance industry.

SpendEdge’s spend analysis solution helped the insurance company understand the current industry trends and find sourcing opportunities in the market. The insurance company was able to understand the current state of spend and devise a short-term and medium-term strategy to improve savings. In addition, the spend analysis solution also helped the insurance company improve the process efficiency and enhance their overall business performance.


Fundamental questions answered in this spend analysis for the insurance company include:

SP01


The Results

The spend analysis solution offered by SpendEdge assisted the insurance company to understand the latest industry trends and offer complete visibility into the spend. The spend analysis solution also offered insightful ways to the insurance company to access, organize, and analyze spend data and ensure that the contract practices are on par with the industry standards.

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procurement risks

Cost Model Analysis for a Leading IT Solutions Provider Helps Enhance Service Efficiency by 10%

Overview of the IT Industry

Globally, the rising spend on IT across prominent sectors such as the healthcare, retail, and transportation is stimulating the growth of the global IT industry. IT solutions help businesses create, manage, and optimize information efficiently. The growth of the sector can be attributed to factors such as government-backed reforms and significant investments in IT. In this age of technology disruption, prominent companies are facing increasing pressure to redefine their technical capabilities and improve the time-to-market for the products and services. Although the IT industry is witnessing promising growth, several factors that may curtail the growth of the industry include:

  • Security threats: With the increase in innovations, technology not only plays a pivotal role in bringing about a digital transformation but also has an adverse effect on the security. Therefore, it becomes important for businesses to efficiently monitor their technology and prevent the outbreak of any security threats. Also, organizations should ensure to implement better cybersecurity measures to improve their service architecture and eliminate security threats.
  • Regulatory environment: Technology companies generally face a host of regulatory challenges in terms of privacy and data sovereignty. With the implementation of stringent regulatory policies, businesses are facing challenges when it comes to handling data sets while reducing any chances of catastrophes. Moreover, organizations should also ensure that they provide end-to-end protection while handling the data.

To address such challenges and better analyze cost factors involved in the process, organizations are  opting for cost model analysis. Cost model analysis helps IT solutions providers to calculate and compare their financial information and point out gaps to bridge the uptake of cost. Moreover, cost model analysis also helps IT solutions providers to effectively allocate their resources to meet the business objectives.request free proposal

The Business Challenge and Our Journey

The client, a prominent IT solutions provider, wanted to identify the cost elements and assess the impact of each cost driver on the overall costs. With the help of a cost analysis solution, the client wanted to identify the direct and indirect costs, intangible costs, opportunity costs, and the cost of potential risks. The primary objective of the engagement was to compare the aggregate costs of the services and determine if the benefits outweigh the costs. In addition, the IT solutions provider also wanted to compare the outsourcing options with in-house capabilities.

To efficiently devise a quantitative cost modeling solution, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the IT industry. Additionally, the experts also compiled information from reliable sources such as trade shows, paid industry databases, and company presentations.

The cost analysis solution offered by SpendEdge helped the IT solutions provider negotiate levers adopted by suppliers to ensure low-cost raw material sourcing. The client was also able to achieve the lowest cost mix and create a scenario-based cost modeling solution. Moreover, SpendEdge’s cost analysis solution also assisted the IT solutions provider to collect the supply market pricing data and the cost movement scenario for all the cost elements.

Fundamental questions answered in this cost model analysis include:

Sp- cost model analysis


The Results

During the course of the engagement, the IT solutions provider was able to determine the fair market pricing while negotiating with the vendors. The engagement also helped the client negotiate with the suppliers to ensure maximum profitability. Furthermore, the engagement also helped the IT solutions provider improve service value while increasing the overall profit margins.

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Spend Analysis Helps a Prominent IT Company Enhance Savings Opportunities by 20%

Overview of the Global IT industry

Globally, digital disruption has forced IT companies to enhance their technological capabilities and improve the time to market for their service offerings. Therefore, to stay competitive in the market, leading businesses have been compelled to improve pricing models and M&A strategies to transform their operations and business models. The industry comprises of services that enable IT companies to create, manage, optimize, and access information. The growth of the IT industry can be attributed to factors such as government reforms to increase the spending on technology and rising opportunities in the IT sector. Although the IT industry is witnessing promising growth, some factors that may curtail the growth of the industry include:

  • Human resources: As budgets become tighter and workloads increase, several IT companies have started facing challenges when it comes to hiring more employees. Due to the presence of numerous players, IT companies have started worrying about retaining their employees as the chances of attrition levels are higher. Moreover, IT companies are also facing the need to invest highly in human resources to cater to the rising demands of the target audience.
  • Innovations: With the advent of new technologies, prominent IT companies have started facing the need to reinvent themselves and stay relevant in the market space. Moreover, it becomes essential for the IT companies to invest highly in research and development to ensure their presence in the IT industry.

To address such challenges and analyze the spending patterns, leading IT companies are adopting spend analysis solutions. A spend analysis solution helps businesses effectively monitor and keep track of their spend and gain better visibility into the spend performance. Furthermore, with the help of such solutions, IT companies can efficiently manage their organizational spend and identify critical savings opportunities to reduce maverick spend.request free proposal

The Business Challenge and Our Journey

The client, a renowned IT company, wanted to gain an understanding of the current state of spend and the spending patterns in the organization. A prominent IT company wanted to manage their organizational spend and identify critical saving opportunities. Moreover, with the help of spend analysis solution, the IT company wanted to track the fluctuating commodity prices based on underlying cost drivers and their prices.

To identify the potential bottlenecks in the IT industry, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with leading stakeholders in the IT industry. Furthermore, the experts also compiled information from a wide array of reliable sources such as paid industry databases, company presentations, and trade shows.

The spend analysis solution offered by SpendEdge helped the IT company compare their spend with that of the competitors. The client was able to identify the potential bottlenecks in terms of savings leak and purchasing overlaps and make accurate and confident decisions. Moreover, the solution also sought ways to discover and control maverick spend and identify and prioritize saving opportunities.

Fundamental questions answered in this spend analysis solution include:

Sp- spend 00


The Results

The spend analysis solution offered by SpendEdge helped the client devise a short-term and medium-term spend strategy and improve the overall process efficiency. In addition, the engagement also helped the client in the IT industry access and organize spend data and develop robust sourcing, budgeting, and product strategies.

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supply management

Supplier Chain Risk Management Helps a Prominent Ecommerce Logistics Provider Improve the Business Efficiency by 13%

Overview of the Logistics Industry

Over the last couple of years, logistics has become an integral component of ecommerce businesses as it plays a pivotal role in planning, controlling, and maintaining the flow of products from the source to the final destination. The growing popularity of cross-border ecommerce logistics and the relentless growth of the ecommerce industry will contribute to the growth of the logistics sector. Moreover, with the rise in trading activities, businesses are finding new ways to optimize their logistics process and gain better visibility into the supply chain activities.

Some of the factors that may curtail the growth of ecommerce logistics space include:

  • Maintaining transparency: With the growing demand for authenticity and reliability in the product offerings, leading organizations are facing challenges when it comes to maintaining transparency in the supply chain activities. Moreover, organizations should also ensure better visibility to keep track of the movement of goods from the source to the destination. The alternating preferences of the consumers towards convenience and agility are compelling businesses to maintain transparency in their product offerings.
  • Increasing efficiency: The presence of numerous competitors has brought in a considerable number of choices for the consumers. Therefore, to retain customer loyalty, it becomes essential for businesses in the ecommerce logistics space to curtail the time taken to deliver the products while maintaining the quality of the products offered.

To counter these challenges and identify the potential risks in the supply chain, organizations are opting for a supply chain risk management solution. Supply chain risk management helps businesses to identify, monitor, detect, and mitigate threats to maintain supply chain continuity and profitability.request free proposal

The Business Challenge and Our Journey

The client, a renowned ecommerce logistics provider, wanted to identify disruptions in the supply chain activities in terms of cost volatility, material shortages, supplier financial issues, and failures. With the help of industry best practices, the client wanted to collect, analyze, and manage supplier information efficiently. The primary objective of the client was to gain relative insights into the potential financial issues and automate the detection process to prevent any supply chain disruptions.

To identify challenges in the supply chain activities, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the ecommerce logistics space. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

The supply chain risk management solution offered by SpendEdge assisted the ecommerce logistics client to understand the typical risks associated with the suppliers and its impact on the business performance. Moreover, the client was able to identify the mitigation strategies to curtail such risks. The supply chain risk assessment solution also helped the ecommerce logistics client to gain an accurate understanding of the current supply chain and accordingly restructure their financial resources to improve their business efficiency.

Fundamental questions answered in this supply chain risk management solution include:

Sp- supplier chain risk management


The Results

SpendEdge engagement offered deep-dive insights into the compliance and regulatory issues in the ecommerce logistics space. The client was able to profile the macro and micro-economic risks and further reduce the potential risks associated with the supply chain.

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IR3

SpendEdge’s Spend Analysis Assists a Renowned Reverse Logistics Provider Achieve Substantial Savings by 15%

Overview of the logistics industry

In the recent years, the logistics industry is witnessing robust challenges in terms of high operation costs, low margins, and a shortage of talent. To address these challenges, prominent organizations are planning to streamline their service capabilities to improve delivery performance and increase customer satisfaction levels. With the rising demand for one-stop solutions, businesses are entering mergers and acquisitions to tap potential markets and enhance their functional capabilities. Moreover, the growth of reversed logistics space can be attributed to factors such as robust GDP growth, globalization, and increasing foreign direct investment.

Some of the factors curtailing the growth of the reverse logistics space are:

  • Tracking warranty: As reverse logistics involves the process of replacing commodities directly from the customers, it becomes difficult for the companies to track the warranty of the products. In the case of third party repair by an OEM, it becomes essential for businesses to track those secondary warranties and generate appropriate claims for the warranty service offered.
  • Improving efficiency: As the reverse logistics space is witnessing relentless competition with the presence of a considerable number of competitors, it becomes essential for the businesses to leverage technological capabilities to streamline their work and deliver efficiency. With the help of advanced software, the company at large can become much more productive and offer seamless and reliable services to the customers.

The Business Challenge and Our Journey

The client, a renowned reverse logistics provider, wanted to accurately classify the spend and gain better visibility into their overall process. With the help of industry best practices, the client wanted to efficiently streamline their process to identify critical savings opportunities in an easy manner. Moreover, through a robust spend analysis solution, the client further wanted to gain accurate, consistent and timely insights into the spend and accelerate their decision-making process.

To identify and calculate the market trends of commodities, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the reverse logistics space. To identify the potential bottlenecks, the experts also compiled information across a wide array of reliable sources trade shows, industry forums, and company presentations.

The spend analysis solution offered by SpendEdge assisted the reverse logistics provider to compare the spend with that of the industry peers and gain substantial savings. Moreover, the solution also helped the client identify bottlenecks in terms of fraud and non-complaint activity and prioritize savings opportunities.

Fundamental questions answered in this spend analysis solution include:

Sp- spend analysis


The Results

During the course of the engagement, the reverse logistics service provider was able to identify and prioritize sourcing opportunities and devise an effective spend management strategy. In addition, with the help of the spend analysis solution, businesses leaders can monitor performance on the KPI’s and gain granular insights into the spending trends and buying activities. The solution also helped the reverse logistics client understand the products specification including the quality, availability, and service requirements.

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IR30

Supplier Risk Analysis Helps a Renowned Gluten-free Foods Producer Reduce Potential Risks by 20%

Overview of the Food Industry

A gluten free eating regimen is medically acclaimed for patients experiencing celiac diseases, for individuals suffering from inflammatory diseases, and auto immune diseases. The growth of the gluten free foods market can be attributed to the rising concern for health coupled with the increasing instances of gluten sensitivity among the populace. Moreover, the medical benefits associated with gluten free products are compelling prominent organizations to maintain sustainability in their product offerings. The relentless growth of innovations is also compelling prominent businesses to retain the price, quality, and service for the products to meet the rising demands of the target audience.

Here are some of the factors that may influence the growth of the industry over the years:

  • Nutrient deficiencies: Gluten free foods might not contain the necessary nutrients that are found in food products that contain gluten. This situation can lead to nutrition deficiencies, where it becomes essential for organizations to include vitamins such as calcium, iron, B vitamins, vitamin D, and fiber into their product offerings to ensure minimal nutrient requirements. Moreover, organizations will also face intense pressure to re-define their product offerings to meet the global demand for fiber-rich
  • High risk of cross-contamination: While the majority of the people in the household shift toward gluten free foods owing to its health benefits, it’s not necessary for everyone to follow a gluten free The preparation of both gluten free and gluten products in the same colanders, toasters, and condiment containers can result in cross-contamination. So, it becomes essential for organizations to thoroughly maintain their wash counters to ensure that there are fewer chances of the food being contaminated.

To counter such challenges and mitigate potential risks in the supply chain, organizations are leveraging risk analysis solutions. A risk analysis solution helps businesses identify, assess, and mitigate risks to reduce vulnerability and ensure continuity. The risk analysis solution also helps businesses revisit their risk models and devise robust risk mitigation strategies to curtail potential risks.request free proposal

The Business Challenge and the Journey

The client, a renowned gluten free foods producer, wanted to evaluate each supplier and understand the typical risks associated with the key suppliers. Moreover, by gaining insights on the industry best practices, the client wanted to identify the impact of the risks on the supply of new products and services. The gluten free foods producer also wanted to identify the risk mitigation strategies to curtail supply chain disruptions. The primary concern of the client was to reduce risks to successfully deliver products to the end-users.

To understand the current landscape, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with leading stakeholders in the gluten free foods space. To determine the supplier’s health, the experts also compiled information from a wide array of reliable sources such as trade shows, newsletters, and magazines.

The risk analysis solution offered by SpendEdge helped the gluten free foods producer identify the macro and micro-economic risks and the regulatory environment. The solution also helped the client develop a financial restructuring plan to adequately allocate their resources to meet the business requirements.

Fundamental questions answered in this risk analysis include:

Sp- supplier risk analysis


The Results

The solution offered by SpendEdge assisted the gluten free foods producer to gain comprehensive insights into the currency and interest rate risks in the industry. With the help of the risk analysis solution, the client was further able to profile the right suppliers to prevent supply disruptions. Moreover, the gluten free foods producer was able to streamline their marketing efforts to improve the return on investment.

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