Tag: spend analysis solutions

IR38

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

IR33

How Spend Analysis Helped a Top Food Manufacturing Company Increase Managed Spend By 80%

Engagement Overview:

A leading food manufacturing company was looking at devising a strategic approach to minimize procurement costs. The client approached SpendEdge to understand the benefits of spend analysis when it comes to analyzing spend, decreasing procurement costs, and enhancing efficiency. A detailed quantitative analysis of various categories within the supply chain was carried out to categorize spend data and develop an effective spend analysis framework.

About the Client:request proposal

The client is a well-established food manufacturing firm with business units and operations spread across Europe.


Business Challenge:

The food manufacturing client’s operations were spread across Sweden, Denmark, Belgium, Germany, Netherlands, France, Finland, and other European countries. It consisted of 22 legal entities, each with a different procurement process and spend management framework.

The client realized the benefits of spend analysis and decided to centralize all their procurement functions and spend management systems by devising a robust spend analysis platform. Hence, they wanted to employ an effective approach to regain control of spend data generated across their business units.


Key questions answered in this spend analysis study include:

Food Manufacturing

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How did SpendEdge Help the Client?

With an increased corporate focus on spend management, the food manufacturing client invested in spend analysis to effectively manage their organizational spend.

  • Step 1: Capture relevant spend data

The first step involved the process of identification and gathering spend data from across the client’s business units. It starts with the identification of key business areas that deal with sourcing such as finance, marketing, and other procurement areas. The collected data is then accumulated to form a single source.

  • Step 2: Categorize spend data

Once the data is captured it is necessary to categorize it in order to begin the spend analysis process. Categorizing the captured spend data into meaningful groups helps identify areas of maximum and minimum spend. By doing so companies can identify and focus on the target spend category.request proposal

  • Step 3: Detect the spend categories that can be optimized

The most essential step in spend analysis revolves around the identification of spend categories that are available for spend optimization. Since a few spend categories do not fall under the optimizable group, it is essential to segregate them into two i.e., addressable and non-addressable spend categories.

The identification and classification of addressable spend data reflect the true nature of supply markets and helps generate a link between the spend categories and the allied supply market.

  • Step 4: Development of a personalized spend analysis platform

The spend analysis experts at SpendEdge devised a four-step comprehensive approach that helped the food manufacturing client to gain a holistic view of spend categories. A similar approach could be adopted by other food manufacturing companies to enhance spend visibility and drive profit margins.

Benefits of Spend Analysis

The solutions offered by SpendEdge’s spend analysis experts helped the food manufacturing client to increase managed spend by 80% across their business units. This spends analysis engagement also uncovered reasons for major issues of concern that affected the client’s overall profit margin.

The developed spend analysis framework played a key role in enhancing spend visibility which in turn helped them improve contract compliance. request proposal The associated benefits of spend analysis played a major role in improving the spend management capabilities of the firm, which, in turn, helped them drive savings.


Benefits of Spend Analysis for Food Manufacturing Companies

There are substantial savings opportunities hidden in the spend data generated by food manufacturing companies across the globe. Extracting valuable insights from raw spend data is now made easy with the help of our spend analysis solutions. SpendEdge’s spend analysis solutions are designed to offer greater spend visibility into the organizational spend data, thereby enabling food manufacturing companies to analyze their spend patterns across business segments.

A methodical approach to spend analysis tied with years of consulting expertise is what drives food manufacturing companies to approach us to help them devise an effective spend analysis platform.


Our Findings:

In this spend analysis engagement, we helped a leading food manufacturing client to enhance their spend optimization capabilities by devising a spend analysis framework. Such an approach can also be adopted by other food manufacturing companies to increase managed spend and maximize the potential of their supply networks.


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IR39

4 Spend Analysis Challenges Procurement Teams Should Know About

Spend analysis is undoubtedly an essential function of procurement in a business. Spend analysis, when correctly performed, can lead to insightful findings and better savings, and often act as a catalyst to drive business decisions for a company. Using a spend analysis solution allows companies to uncover the hidden potential lying within their data. Businesses can empower their team with business intelligence to make discoveries that can quickly grow the sourcing pipeline. However, procurement teams implementing a spend analysis solution can often face several challenges and roadblocks. Here are four of the critical challenges that wSE_Demo2e think procurement teams must overcome for undertaking spend analysis successfully:

Cleansing the data

The tasks to extract, cleanse, classify and normalize spend data should not be underestimated. Traditional, rules-based approaches to cleansing and organizing spend data can be time-consuming and may introduce inconsistencies if carried out manually. Automated methods may be quicker, but exceptions will undermine completeness, and therefore accuracy.

Insufficient resources

The purchasing team is of a company is often consumed with daily tasks such as buying basic materials for the organization. Spend analysis usually starts with purchasing and strategic sourcing. For this, procurement teams require IT support. Although the need for IT support has lessened significantly over the years, procurement teams still need to allocate resources to spend analysis and strategic sourcing to drive leverage across the organization.

Data silos

Each group managing spend has their own systems and their own data. In most companies, for security reasons, no one person has access to all the different systems. So, if procurement teams want to pull together all the data, different people have to be approached for various data.In this case, there are chances of encountering varying attitudes and degrees of cooperation from people having access to the data. Also, in many cases, data may be incomplete, inaccurate, or even inconsistent. In a rush to satisfy a requirement, some descriptions are too brief to understand the nature of the spend; sometimes errors in coding occur; and many times the same company may be referred to in different ways. These might cause confusion and miscommunication during procurement.

Resistance to change

Spend analysis can often be misunderstood. It can represent a threat to some stakeholders including customers, contracting officers, financial managers, etc. The best way to address resistance is with education. Develop briefings to educate anyone with an interest, informing them about what speed analysis is, how it can benefit them, and how can it contribute to success.


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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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Spend Analysis for a Leading Food Retail Client Helps Assess their Current State of Spend

Overview of the Food Retail Industry

Food is one of the key categories of spend and accounts for a majority of the contribution to the GDP globally.

The food retail industry is experiencing steady growth and is marked by the change in customer preferences, a radical shift toward online shopping, and the rising global population. The food retail space comprises of convenience stores with products for immediate use such as perishables, groceries, general merchandise, and health and beauty care. The noticeable shift toward organized retail is compelling business providers to leverage opportunities and offer reliable products while compromising on the costs. Apart from the traditional factors, shifting consumer preferences toward brand loyalty and the increasing supermarket shopping culture are influencing the growth of the food retail space globally. Although the food retail industry is witnessing considerable growth, several factors may influence the growth of the industry. They include:

Lack of supply chain effectiveness: Supply chain plays a prominent role in the retail industry – right from the initial stage of manufacturing to the final consumption of products. Any disruptions in the overall supply chain will not only have an adverse effect on the overall supply visibility, but it may further affect the business efficiency as a whole. To address these concerns, organizations should ensure supply chain effectiveness in their products and service offerings to enhance operational efficiency and maximize their ROI.

E-commerce platforms: In the recent years, Amazon’s grip on retail products has witnessed a considerable growth, accounting for half of the overall retail growth. Leading organizations offering in-store product offerings saw a radical decline with the growth of robust e-commerce platforms. To successfully compete with these e-commerce giants, food retail companies should emphasize on innovations.

To address these challenges and keep track of their current spending patterns, businesses are utilizing spend analysis solutions. Spend analysis offers better insights into the spend data and helps businesses identify potential opportunities to allocate their spend wisely. Moreover, spend analysis further focuses on gaining better visibility into the spend patterns and manage the spend to curtail maverick expenses.request free proposal

The Business Challenge and the Journey

The client, a renowned food retail client, wanted to analyze the spend patterns and refine their marketing spend to meet the business requirements. While managing spend becomes a major concern for the organizations, the client wanted to identify the potential opportunities for spend and ensure that they curtail any maverick spend. With the help of the spend analysis solution offered by SpendEdge, the client also wanted to seek ways to efficiently manage risks associated with additional spend and aid the organization in devising a short-term, and medium-term spend strategy.

To offer reliable services to the client while improving savings, SpendEdge’s spend analysis experts carried out extensive research methodology across the food retail space. The research methodology comprised of interviews and discussions with prominent stakeholders in the industry. Moreover, to improve the process efficiency, SpendEdge’s spend analysis experts also compiled information across a wide array of proprietary resources such as paid industry databases, industry forums, and company presentations.

SpendEdge’s spend analysis solution helped the food retail client generate accurate, timely, and consistent visibility into the spending patterns and identify critical savings opportunities in an easy manner. Moreover, the solution also offered relevant insights into the procurement activities and rectified potential bottlenecks in terms of savings weak, prices vary, and purchasing overlaps. The food retail client was efficiently able to compare the spend with that of the competitors and prioritize savings opportunities.

Key fundamental questions answered in this spend analysis solution include:

Spend analysis

The Results

During the course of the spend analysis engagement, the food retail client was able to compare the spend profile to aggregate peer group data and make informed decisions. The client kept up-to-date spend records that helped them control maverick as well as fraud and other non-complaint activity.


To know more about our spend analysis solutions

request free proposal


Request free proposal