Tag: spend analysis benchmarking

Facility management

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

Non alcoholic beverages

Spend Analysis Assists a Prominent Non Alcoholic Beverages Producer Identify the Potential Saving Opportunities

Overview of the Non Alcoholic Beverage Industry

Over the years, the non alcoholic beverage industry is reshaping to more nutritive low-calorie beverages, owing to the increasing concern regarding obesity and health awareness. Non alcoholic beverages at large comprise of products ranging from fruit juices, soft drinks, ready-to-drink coffee, and energy drinks. Prominent manufacturers in the non alcoholic beverages space are concentrating on new product launches to meet the changing consumer preferences. Along with the rising societal awareness regarding health problems, the industry is also characterized by additional factors such as rising disposable income, population growth, and rapidly changing consumer preferences. Although the industry is witnessing a promising growth due to urbanization, several other factors may affect the growth of the industry. These include:

  • Stringent government regulations: In the last couple years, the non alcoholic beverage industry is witnessing compliance issues in terms of regulations in labeling and listing the ingredients in the products offered. It becomes essential for organization to ensure the standard compliance requirements are met before offering the products to the target audience. Since, non alcoholic beverages are produced as an alternative for alcoholic beverages, ensuring the quality in the products becomes a necessary concern for the organizations.
  • Altering consumer preferences: Consumers have become more informed and can gain access to a wide array of information in terms of the ingredients used in the product offerings. The altering preferences of the customers are compelling business providers to offer products that are in tune with the customers.

To estimate the relative spend and identify the potential saving opportunities, organizations are utilizing the need for a spend analysis solution. Spend analysis solution helps businesses gain adequate real-time spend visibility by cleansing, validating and classifying spend data in the organization. Also, the procurement teams can streamline their strategic sourcing, reduce maverick spend, and optimize substantial savings.request free proposal

The Business Challenge and Journey

The client, a prominent non alcoholic beverages producer, wanted to streamline and identify their spending behavior to meet their procurement objectives. The client wanted to gain accurate, consistent, and detailed visibility into the spending patterns and improve data quality to reduce additional maverick spend. Through a detailed spend analysis engagement, the client wanted to seek ways to identify the potential bottlenecks in terms of savings leak, prices variance, and purchasing overlaps. The primary objective of the client was to compare the spend with that of the competitors and find deeper insights into the supply base.

To potentially determine any risks associated with the supply base, the spend analysis experts at SpendEdge carried out extensive research comprising of interviews and discussions with prominent procurement experts in the industry. The experts also compiled information across a wide array of proprietary sources such as trade shows, paid industry databases, and company presentations to enhance data accuracy and drive more informed business decisions.

The spend analysis solution offered by SpendEdge helped the non alcoholic beverages producer develop state-of-the-art tools to gain more comprehensive analysis of the spend. The client was able to identify the latest saving opportunities in the supply chain and generate accurate and actionable information on spending trends and buying activities. The solution also helped the client develop a short term, and medium term spend strategy to improve the overall process efficiency.

Fundamental questions answered in this spend analysis solution include:

Sp-Spend analysis


The Results

During the course of the engagement, the non alcoholic beverages producer was able to negotiate a contract with the current suppliers and assess and profile the prominent supplier from a pool of competitors. Furthermore, with the help of the study, customers were able to gain an understanding of the spend analysis patterns of individual transactions right from the procurement to invoicing and expenses.

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Financial services

Spend Analysis for a Prominent Financial Services Provider Helps Analyze their Marketing Spend

Overview of the Financial Services Industry

Amid the growing concerns about regulatory changes, banks and financial institutions are facing the need to realign their businesses processes to respond to the increasing demand for transparency. Leading business organizations are investing heavily in technological capabilities to remain abreast of the competition and bring the most value to the customers. The growth of the financial services industry can be marked by frequents shifts in technology and organizations are looking to create a resilient, accessible financial system to meet the growing demand among the consumers. Although the financial services space is witnessing a stipulated growth, owing to the presence of numerous competitors, several factors may influence the growth of the market. They include:

Digitization: In this technology-driven environment, prominent financial services providers are finding it difficult to stay relevant owing to the relentless competition. With advances in technology such as mobile services, customers are looking for convenience in their transaction capabilities. To counter these challenges, organizations are relying on advanced technology platforms such as big data and analytics to sharpen risk assessment and drive revenue growth.

Stringent government regulations: Post the financial crisis, financial services providers are facing challenges to control risk and maintain compliance while offering services at comparable lesser costs. To go on par with the rising customer expectations, leading organizations are facing the need to reduce short-term costs and manage capital and risk while meeting the compliance standards.

To counter these challenges and analyze their spend in a seamless manner, organizations are utilizing the need for a spend analysis solution. A reliable spend analysis solution provides better insights into the spend data and helps companies identify the potential opportunities. The spend analysis solution also helps businesses manage the organizational spend and help companies identify the critical saving opportunities in a seamless manner.request free proposal

The Business Challenge and the Journey

The client, a renowned financial services provider, wanted to gain an accurate, consistent, timely, and detailed visibility into the spending patterns and find prominent ways to reduce maverick spend. With the help of a spend analysis solution, the client wanted to easily identify the savings opportunities to accelerate the decision-making process. The primary objective for the client was to identify the potential bottlenecks in terms of savings leak, prices vary, and purchasing overlaps and compare the spend of the company with that of the industry competitors.

To gain better visibility into the spending patterns, SpendEdge’s spend analysis experts carried out an extensive research methodology with procurement experts in the financial services space. To detect fraud and other-complaint activity, the experts also compiled information across a wide array of proprietary sources such as paid industry databases, industry forums, and company presentations in the financial industry.

The spend analysis solutions offered by SpendEdge helped the financial services client compare the spend profile and related measures to aggregate peer group data and drive more informed business decisions. The solution also helped the client organize all the spend data from company’s different systems and gain better visibility to prioritize sourcing opportunities. Moreover, the spend analysis solution also sought ways for the client to accurately correct errors in descriptions and transactions as well as categorize the spend based on the priorities.

Fundamental questions answered in this spend analysis solutions include:

Spend analysis01

The Results

During the course of the engagement, the spend analysis solution helped the client to monitor and update date to ensure adherence to the contract terms. Moreover, the solution also helped the client decrease procurement costs and improve efficiencies through advanced real-time data and analytics. Through the spend analysis solution, the financial services provider was able to compare results and monitor the change in the process.


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Spend Analysis

How AI is Driving Innovation in Spend Analysis

Numerous cost-saving opportunities are lying across the company’s supply chain. For many procurement managers, the cost incurred by the organization are often inevitable. Also, they cannot quite figure out which expenses are avoidable and which costs are contributing to the business success. That is the exact reason why procurement and sourcing managers are increasing their dependency on spend analysis to collect, classify, and analyze expenditure data in order to increase procurement efficiency and cost-savings opportunity. Currently, all the major organizations are using spend analysis to improve efficiency, reduce maverick spend, and increase cost-savings. Companies have to look out for innovative tools and practices in spend analysis to increase their competitiveness and improve their cost structure. The rise of artificial intelligence (AI) is helping procurement organizations gain new insights to shape effective strategy with spend analytics approaches.SE_Demo2

Strategic Sourcing

Companies resort to using historical data during their supplier selection process. However, using historical data alone would not be the best option to base a strategic sourcing decision. Using latest machine learning methods, procurement teams can run a spend analysis before, during, and after a sourcing event to evaluate supplier performance. With the use of AI, the organization can view produce demand breakdown, market analysis, cost component analysis, and supplier performance analysis even before a sourcing event begins. Extensive knowledge about supplier and market condition enables procurement teams to analyze spend patterns with selected suppliers.

Supply Management

Selecting the right supplier is just one of the process in the supply chain. The supplier performance has to be constantly monitored and evaluated to ensure that the relationship is adding value to the company. Spend analysis program focuses on analyzing the spends against suppliers in terms of individual suppliers, purchase volume, mode of shipment, and mode of payment. Since all data points are not expressed in absolute terms, with some in the form of semi-structured data, procurement teams need to turn to AI for procurement analytics needs. For instance, instead of manually going through purchase orders and invoices, AI and procurement analytics can help them determine inventory overhead costs and predict stockouts by looking at purchase orders and invoices.

Risk Management

Procurement organizations are continually monitoring their strategies to increase their efficiency. However, not everything goes as per plan. So, the strategic management process needs to incorporate an additional factor, risk. All modern analytical engines can accurately provide insight into past performance and predict future outcomes. However, what sets AI apart from traditional data analytics is its ability to include external factors to predict risks. Leading analytics platform can perform analysis by integrating factors such as market prices, commodity data feeds, and numerous complex data sets including financial risk scores, CSR scores, and third-party data sources related to risk. With such analysis, procurement teams can perform a robust spend analysis to ascertain spending limit with each supplier factoring in risk elements.

For more information on spend analysis, procurement analytics, spend analysis tools, spend visibility, supplier spend analysis, contract management, and category spend analysis:

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Food and Beverage service

Spend Analysis Helps a Food and Beverage Service Client Determine the Current State of Spend

Category Overview

Owing to the shift towards a customer-centric and health conscious environment, players operating in the food and beverage service space have started devising robust spend analysis solutions to curtail the costs associated with additional spend. In the food and beverage service space, firms are leveraging the use of spend analysis solutions to gain better visibility into their spending patterns across the supply chain. Additionally, firms can enhance their procurement objectives and data quality, minimize maverick spend, and improve their decision-making process.

Moreover, SpendEdge’s spend analysis solutions help food and beverage service clients make improved and confident buying decisions.

The Procurement Pain Point and Insights Offered

A global food and beverage service client with offices spread across various geographical locations was facing predicaments in assessing their current spend and identifying the possibilities of improving their current state of spending. As a result, the client wanted to gain a deeper understanding of their spending patterns and devise effective spend strategies to reduce maverick spends and improve their supply process efficiency.request free proposal

To help the food and beverage service client understand their current spending patterns and improve process efficiency, SpendEdge’s team of spend analysis experts tailored a detailed two-step research methodology that involved primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the this spend analysis engagement; the food and beverage service client gain actionable insights into the buying activities and spending trends. Additionally, the client was able to streamline their strategic sourcing plans, improve cost savings, and reduce maverick spend.

Fundamental questions answered in this spend analysis study include

Food and Beverage serviceBusiness Outcome

The food and beverage service client gained a better visibility into the categories and business units across the supply chain. This helped them determine the overall current spend by supplier, commodity, and categories from diverse sources.

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Industry Best Practices Benchmarking Study for a Fleet Management Company

Category Overview

The fleet management industry is regarded as one of the primary industries in logistics and transport, driven by connected vehicles and smart transportation solution by various organizations. Over the years, this industry has seen an astonishing growth due to the higher efficiency and performance at reduced costs and a much-streamlined process. According to SpendEdge’s industry best practices experts, it has been noted that the tensions with procurement created by resource sharing, driver reimbursement, and life cycle costing are all affected by external market factors; thereby, challenging fleet management companies to cut down on costs. As a result, many fleet management companies have started adopting industry best practices studies to gain a list of diverse skill sets and establish themselves in this market space.

Moreover, the industry best practices studies offered by SpendEdge help fleet management companies adopt best-in-class sourcing and procurement strategies.

The Procurement Pain Point and Insights Offered

A leading fleet management company with offices spread across the globe wanted to identify a list of the major competitor businesses and their key suppliers. Additionally, the client also wanted to implement a lean, scalable, best-in-class, and efficient procurement process and cut down costs. Furthermore, they also wanted to assess the sourcing and procurement best practices of peer group companies to serve their clients better.request free proposal

To cater to the specific category requirements of the client, the industry best practices experts 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 of this industry best practices study, the fleet management client was able to identify the key drivers for this procurement process transformation project, including organization design, technology, and optimization techniques. Additionally, the client was provided a list of the major competitor companies and their key suppliers to enhance their overall procurement process.

Key questions answered in this industry best practices study include

fleet management

Business Outcome

The industry best practices study helped the client implement a lean, scalable, best-in-class, and efficient procurement process. Additionally, the client was able to identify and discard the inefficient and unproductive processes across platforms. As a result, the fleet management client was able to cut down the overall cost.

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Transportation procurement

Leveraging Spend Analysis Solutions to Reduce Procurement Lead Time and Purchasing Spend

Category Overview

Through spend analysis, firms can gain greater visibility and valuable information on the amount of money spent. Additionally, the data obtained from spend analysis can help an organization make informed decisions about how their current processes can be improved. Moreover, since cost effectiveness is one of the major goals for any company, implementing a spend analysis solution will offer insights to organizations about their expenditures and procurement activities. This, in turn, results in a lower total cost to procure goods and services. As a result of such advantages, many organizations have started opting for spend analysis studies to improve their process efficiency and cut down on overall costs.SE_Demo2

The Procurement Pain Point and Insights Offered

A global automotive manufacturing company with offices spread across the globe wanted to reduce procurement lead time and material spends with the help of a spend analysis study. The automotive manufacturing company’s processes, data or systems related to customers, partners, products, vendors, and employees were not standardized. As a result, the client wanted to gain insights on achieving a single platform to integrate all of their purchasing activities. Additionally, they also wanted to streamline their procurement performance by cutting down their inventory costs, material spends and wastages in inventory stock.

The spend analysis professionals at SpendEdge carried out a comprehensive research methodology. This in-depth research included primary and secondary research to cater to the specific category requirements of the client. During the course this spend analysis study, the client was provided with a better visibility into the procurement data, enabling them to capture the spend against products, services, commodities, and suppliers. Such an insight helped the company reduce costs and strategically improve supplier relationships. Additionally, SpendEdge introduced the concept of self-service for the client, which streamlined and automated workflows – enabling employees to manage online shopping carts easily.

Key questions answered in this spend analysis study include

spend analysis

Business Outcome

The engagement helped the client improve procurement efficiency and reduce procurement lead-time with the automation of different procurement activities. Additionally, the client was able to increase the visibility of in-transit inventory and improve supplier delivery performance and material planning.

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spend analysis

Spend Analysis Helps a Retail Client Realize $20M in Annual Savings

Retail Industry Category Overview

The retail industry consists of firms engaged in vending commodities or goods for household or personal consumption – primarily comprising of clothing and accessories, food and beverages, technology, pharmaceuticals, specialty, and others. The major factors fuelling the growth and opportunities of the global retail market and the retail segment players include the increasing population, GDP growth, higher disposable income, and rising consumer spending. However, the global economic recession, higher unemployment, and inflation rates are some of the challenges for the market’s sluggish growth in this industry segment. As a result, many retail firms have started opting for spend analysis studies to improve process efficiency and cut down the costs.

The Procurement Pain Point and Insights Offered

A global retail firm with offices spread across the globe wanted to gain insights on the rising importance of global retail markets and assess and select the right suppliers. Additionally, the client required fundamental insights on its business spend to generate meaningful information on several important metrics. This included suppliers by spend, volume-based top suppliers, and regional spend distribution.SE_Demo2

To cater to the specific category requirements of the client, the spend analysis professionals at SpendEdge carried out a comprehensive research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies. During the course this study, the client was given a list of suppliers with different names but with the same parent corporation. The client was also recommended to carry out supplier normalization, which would help increase visibility into spend areas across the board and help in improving processes. Subsequently, achieving a significant cost savings prospects and robust negotiation tools for the upcoming sourcing strategies.

Key questions answered in this spend analysis study include

Spend Analysis

Business Outcome

The spend analysis study helped the client utilize the data provided into meaningful business information from volume-based top suppliers, regional spend distribution to material class spend versus order lines, order type volume versus spend, and more. Additionally, the client was also able to efficiently identify and take actions about the inefficiencies in their procurement system. This enabled them to reduce maverick spends, recover over-payments, manage risk, and benchmark their relative position – for a projected total annual savings of $20 million.

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Market intelligence

Leveraging Spend Analysis to Boost Savings and Realign Supply Chain Organization Structure

Category Overview

Spend analysis is the method of identifying, gathering, grouping, categorizing and analyzing an organization’s spend data with the primary focus on decreasing the procurement costs and improving efficiencies.  This is achieved by making use of real-time data and analytics, which help envision all the data sets to make better sourcing and supplier decisions. This helps reduce cycle time, improve compliance, and recognize maverick spend patterns. Owing to such benefits, many automotive firms have started opting for spend analysis studies to cut down the costs and improve process efficiencies.

The Procurement Pain Point and Insights Offered

A leading electronics manufacturer with offices spread across the globe wanted to gain quick savings and realign their supply chain organization structure for indirect categories. As a result, the client wanted to develop a comprehensive global spend assessment of their indirect spend. Additionally, the client also wanted to identify and assess the key suppliers in the market and analyze their spend patterns. Furthermore, they also wanted to identify better strategies to enter into a contract negotiation with their current suppliers.SE_Demo2

The spend analysis experts at SpendEdge followed a blended research methodology approach, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client. During the course this study, the client was offered reports that helped them plan, prioritize, and implement several sourcing initiatives within the supply chain organization and across multiple global plant locations. This approach enabled the client to meet the objective of identifying huge saving opportunities through supplier aggregation and determine the categories of indirect spend to focus upon. Furthermore, the client also gained insights on superior strategies to enter into a contract negotiation with the current suppliers.

Key questions answered in this spend analysis engagement include

Spend Analysis

Business Outcome

The spend analysis study helped the client devise detailed sourcing strategies and realize huge cost savings for indirect spend. Additionally, they achieved quick savings and process efficiencies for categories such as office supplies, computer peripherals, and MRO.  Furthermore, the client was also able to identify and assess the key suppliers in the market and analyze their spend patterns.

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Automotive industry

Spend Analysis Study Helps a Leading Automaker Reduce Procurement Costs in APAC

Category Overview

Over the last decade, the global automotive industry has undergone a tremendous transformation in its history. Although the European and North American regions are the largest markets, the APAC region is witnessing an increasing share of global automotive sales and is the only market, which is expected to witness steady growth in the coming years. However, the major reason behind the market’s sluggish growth in this region is the social and political instability witnessed across this region. As a result, many automotive firms have started opting for spend analysis studies to improve process efficiency and cut down the costs.

The Procurement Pain Point and Insights Offered

A leading automaker specializing in manufacturing automotive components wanted to not only reduce the current amount spent but also wanted to gain insights on the rising importance of global markets. Additionally, the client also wanted to identify the key suppliers in the market and analyze their spend patterns. Furthermore, the client also wanted to identify superior strategies to enter into a contract negotiation with their current suppliers.SE_Demo2

The spend analysis specialists at SpendEdge carried out an in-depth two step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client. During the course this spend analysis engagement, the client was able to identify all the available suppliers, mainly in South Korea and China with a request for quotation (RFQ) package that outlined the volumes, projections, and partnerships. Additionally, the client gained insights on the spend pattern analysis of the other key suppliers and was able to develop a superior strategy to enter into a contract negotiation with the current suppliers.

Key questions answered in this spend analysis case study include

Capture3

Business Outcome

The spend analysis study helped the client identify the key suppliers in the market and their spend pattern. Additionally, the client obtained an understanding of the global supply capabilities and achieved their goal of supplier diversification to address the increasing importance of the Asian markets.

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