The medical devices market will witness significant opportunities for growth in the coming decade primarily due to the introduction of innovative devices in the market and by the demand generated by illnesses related to the aging global population. However, the medical device companies are required to exhibit a high level of cost-effectiveness for the products owing to the tighter regulatory and reimbursement policies, particularly in the emerging economies. As a result, many medical device companies have started opting for spend analysis and benchmarking services to identify and optimize their spend areas to maximize profits and streamline processes.
The Procurement Pain Point and Insights Offered
A fortune 500 firm with offices spread across the globe wanted to gain insights on the category and supplier pattern analysis. They also wanted to find out the key vendors in the market and gain insights into their spend pattern. Furthermore, they also wanted to gain an understanding of the superior strategies to enter into a contract negotiation with the current suppliers.
The spend analysis analysts at SpendEdge followed 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 of this assessment, the client gained insights on the ways to decrease procurement costs, improving efficiency, and monitor compliance. Additionally, the client could identify the vendors based on parameters including geographic coverage, qualitative assessment scores, previous experience with the vendors, and product development and tooling costs. This spend analysis assessment also helped them understand the spending pattern other key suppliers. Furthermore, the client discovered a better negotiation strategy to enter into a contract negotiation with the current suppliers.
The spend analysis and benchmarking assessment helped the client identify the current state of spend and an intermediate term spend strategy. Additionally, the client was offered suggestions on new ways to improve their process efficiency. SpendEdge’s spend analysis and benchmarking assessment also provided insights on the possible ways of improving the savings by identifying and optimizing spend areas.