Tag: spend management

vendor risk management

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

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

The client is a leading medical devices company, specializing in the development of medical devices, laboratory instruments and diagnostic products. The company supplies devices to hospitals, laboratories, and clinics worldwide. With a total revenue of $20 billion, the company has ingrained its place as a leader in the medical devices market.

The Business Challenge 

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

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

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spend management

Spend Management Solutions: A Holistic Guide for Procurement Companies

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

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

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

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

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CPG Industry

Spend Management: Reducing Purchase Spend for a CPG Industry Client

Engagement Overview

A leading CPG industry client wanted to address the challenges emerging due to inefficient spend management. As a result, the client wanted to leverage SpendEdge’s spend management engagement to enhance spend capabilities across their supply network and drive topline revenue growth. During the course of this engagement, the spend management experts at SpendEdge devised an all-inclusive approach which consisted of primary and secondary research methodologies.

Additionally, a detailed quantitative analysis of the various spend factors across the CPG industry client’s supply network was carried out to request proposal help them identify, evaluate, and prioritize each factor contributing to indirect spends.

About the Client

The client is a leading CPG industry player in the United States. The company is based out of Pennsylvania and has an annual revenue of over USD 10 billion.

Business Challenge

The CPG industry player was facing difficulties in enhancing their spend management capabilities across their global supply network. Additionally, the client wanted to tactically address the burgeoning nature of their inefficient spend management system.


How did SpendEdge Help the Client?

Step 1: Collected and categorized organizational spend data

Today it is essential for organizations in the CPG industry space to collect and categorize spend data from a multitude of sources supply network to efficiently identify irrelevant sources of spend. By doing so, establishments can effectively decrease and overcome the inexorable circumstances caused by an ineffective spend management system.

Step 2: Devised a flexible spend management framework that aimed at reducing the organizational and supply risks

The dynamic nature of the supply chain called for the refinement of the CPG industry client’s spend management capabilities. The development of a proactive spend management framework required a combination of measures, which included – changes to the organization’s data management structure, superior spend management strategies, and the use of advanced spend management frameworks.


Key questions answered in this spend management engagement include

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Benefits of the Engagement

With the help of SpendEdge’s spend management engagement, the CPG industry client enhanced the visibility of their supply chain processes by establishing an interconnected relationship between different tiers of the supply network. Additionally, the client developed a holistic spend management approach. The approach accounted for major changes in organizational processes, data management, and data governance, which helped them address changes in market trends including the changes in regional and global demands.

Why incorporate spend management solutions?

With the ease of availability of advanced technological solutions like spend management systems, it is now possible for organizations across the globe to bring about massive cultural transformations as a fundamental part of their business plans. Click To Tweet

Our Findings

While leading CPG industry establishments turn to robust spend management solutions to reduce purchasing spend, they also understand that a precise spend management framework relies on the reliability and quality of the underlying spend data. This case study on spend management from SpendEdge concludes that a successful spend management system must be based on a robust data management foundation.


To know more about our spend management for CPG Industry players

request proposal

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Fast food industry

Leveraging Spend Management to Save Costs and Boost Profits in the Fast Food Industry

Engagement Overview:

The client wanted to leverage spend management to enhance spend capabilities across their supply network to drive topline revenue growth. To proactively address the challenges emerging due to inefficient spend management, the fast food industry client approached SpendEdge to devise an all-inclusive approach to spend management throughout their global supply network.

A detailed quantitative analysis of the various spend factors across their supply network was carried out to identify, assess, and prioritize each factor contributing to irrelevant spend. Using a robust spend management framework, the client was looking at devising appropriate strategies to reduce unwanted costs and inefficiency out of the supply chain. By doing so, the client wanted to gauge the impact on their bottom line and free up resources to address changing consumer predilections. 

Furthermore, to address the issues of the fast food industry client a robust three-step spend management framework was developed, it included – collection, spend data analysis, and the development of a spend management framework. Following this, the fast food industry client redesigned their spendrequest proposal management system to leverage and include proactive spend management strategies.

About the Client:

A leading fast food chain in the US, worth approximately 15.5 billion U.S. dollars. The client is a prominent player in the fast food industry with multiple branches across various geographies.

Business Challenge:

The fast food industry player was facing difficulties in enhancing the spend management capabilities across their global supply network. To help the client overcome their challenges, the experts at SpendEdge developed a three-step methodology to tactically address the burgeoning nature of an inefficient spend management system.


How did SpendEdge Help the Client:

  • Step 1: Extraction and clean-up of spend data from legacy systems

In the first step, spend data from across the client’s supply network was extracted, standardized, de-duplicated, and enriched to ensure effective spend data management. Our spend management experts followed a structured approach to develop a framework to effectively track the client’s organizational spend.

  • Step 2: Collection and categorization of organizational spend data

It is essential to collect and categorize spend data from a multitude of sources within the organization’s supply network to identify irrelevant sources of spend. By doing so, organizations can effectively reduce and overcome the inflexibility caused by an incompetent spend management system.

  • Step 3: Devised a flexible spend management framework aimed at reducing the organizational risks

The dynamic nature of the supply chain called for the refinement of the client’s spend management capabilities. The development of a proactive spend management framework required a combination of measures, which included – changes to the organization’s data management structure, spend data management strategies, and the use of advanced spend management.


Key questions answered in this spend management study include:

Fast food industry


Benefits of the Engagement

Our spend management experts helped the fast food industry client devise an effective spend management framework to diversify their sourcing strategies to and minimize the risk of catastrophic supply chain failure due to an ineffective spend management system.

Leveraging spend management enabled the fast food industry client to enhance the visibility of their supply chain processes by establishing an interconnected relationship between different tiers of the supply network. The development of a holistic spend management approach also accounted for major changes in data management, organizational processes, and data governance, which helped address changes in market trends including the changes in regional and global demands.

Why is spend management necessary?

To deal with the inadequacies of traditional spend management systems, leading fast food industry firms are increasingly recognizing the need to incorporate spend management strategies across their global supply network. Click To TweetWith the easy availability of advanced technological solutions, it is now possible to bring in massive cultural transformations through the adoption and implementation of spend management as a fundamental part of business maneuvers.

Our Findings:

While leading business establishments often turn to spend management solutions to reduce purchasing spend, they quickly realize that a precise spend management framework ultimately relies on the reliability and quality of the underlying spend data. This case study on spend management concludes that a successful spend management system must be based on a robust data management foundation.


To know more about our spend management solutions for the fast food industry
request proposal

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Processed Meat

Spend Analysis Helps a Leading Processed Meat Manufacturer to Develop Effective Category Strategies for Their Manufacturing Units

Overview of the processed meat industry

The global processed meat industry comprises of subcategories including processed lunch meat, bacon, frankfurters, dinner sausages, packaged meals, hams and processed turkey.

The global processed meat industry is expected to witness high gains in light of increasing demand for processed meat coupled with increasing disposable income in emerging countries. Additionally, the rising consumer awareness in terms of following an animal protein-rich diet and the availability of numerous varieties of processed meat in the market at lesser prices is further expected to boost the demand for processed meat.

However, our analysis of the food and beverage space shows that the processed meat industry manufacturers are facing challenges in terms of:

  • Rising costs of raw materials: The processed meat industry is continuously battling ebbs and flows. Additionally, it is difficult for players in this market to predict market volatility, which means that the pricing.
  • Innovation: For companies in the processed meat industry, it is vital to innovate if they want to stay relevant in the marketplace. Innovation and flexibility is the answer to changing consumer trends. So companies not only need to look at a variety of products and packaging sizes, but also innovation in their process facilities.

Many such factors are compelling firms in the processed meat industry to leverage the use of spend analysis solutions. Spend analysis solutions help firms identify single-sourced items and develop a robust supplier base to ensure the availability of critical items.request free proposal Not only does spend analysis provide knowledge into an organization’s procurement activities and expenditures, it also allows the organization to identify areas for process improvement and cost reduction.

The Business Challenge and Journey

Client background: A leading manufacturer of processed meat with manufacturing units spread across geographies wanted to categorize and classify spend data accurately. They also wanted to rationalize suppliers and focus not just on the quality of products supplied but ensure sustainable supply with limited risk to the enterprise.

Client issue: Procurement was a decentralized function, and this meant that the information was not centrally available and was unstructured. Every manufacturing plant and department managed procurement independently, and there was minimal transparency and lack of granularity in their data and reporting.

SpendEdge’s spend analysis experts tailored a two-step research methodology, which included qualitative and quantitative data collection methods to categorize and classify spend data accurately. The experts also collected information from a wide array of reliable secondary sources including trade shows, industry forums, and company presentations.

Client journey: The spend analysis engagement helped the client categorize spend data with supplier level data across various categories. This helped them make informed purchase decisions. Additionally, the client implemented the solution across all categories, enabling the rollout of the sourcing strategy “from buying the best product to selecting the best supplier.”

Key questions answered in this spend analysis engagement

The Results

With the help of SpendEdge’s spend analysis engagement, the renowned processed meat manufacturer gained in-depth knowledge about their spend categories and developed effective category strategies across their manufacturing units.

To know more about our spend analysis solutions

request free proposal


Transportation Services

Spend Management Assists A Prominent Transportation Services Provider to Develop A Strategic Procurement Strategy

Overview of the Transportation Services Industry

The global transportation services industry includes several sub-sectors including subways, municipal buses, goods transport systems, and other similar modes of transport. The industry encompasses all those businesses that move people or goods, by land, sea, or air, from one point to another. The transportation services industry is capital-intensive, and the demand is primarily driven by macroeconomic trends in global imports and exports. request free proposalAdditionally, the intensity of competition fluctuates depending on the specific industry; the road transport sector for instance, usually experiences the highest level of rivalry, while railways, as natural monopolies, suffer less from direct competition. As a result, leading players operating in the transportation services space are looking at expanding their business units to establish their presence in the market.

However, our analysis of the logistics industry shows that the leading transportation services providers are facing challenges in terms of:

  • Economic factors: Transportation projects across the globe may have an adverse impact on the community’s economic development objectives including business activity, employment, property values, productivity, and investments. The chief aim of such projects revolves around improving the overall accessibility while reducing transportation costs. Therefore, it becomes necessary for firms in the transportation services space to consider both the positive and negative impacts of economic factors.
  • Civic impacts: These include the effects of a transportation project on communities beyond specific factors that unpleasantly affect the users of transportation services. It is also known as ‘social impacts’ and includes variations in environments, noise, views, and land use mix and community cohesion. Additionally, community impacts serve as a significant decision factor when transportation services providers are weighing both the distributional and adverse effects of proposed projects.

Several such factors are compelling transportation services providers to leverage the use of robust spend management solutions. Spend management solutions help firms efficiently manage their organizational spend and identify critical savings opportunities to reduce maverick spend. These solutions also help companies effectively monitor their spend and gain better visibility into the spend performance.

The Business Challenge and Journey

Client background: A leading fortune 500 transportation services provider with business units spread across the globe wanted to streamline their business practices and analyze their current, past, and forecasted expenditures to allow visibility of data, based on commodities.

Client issue: The client wanted their entire process of spend management including data extraction, classification, and analysis to be reinforced by automation, thereby, making it a sustainable process. The client also wanted to implement a robust spend management solution to reduce their overall material and service costs.

The spend management experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the transportation services sector to help the client develop a strategic procurement strategy. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

Client journey: During the course of this spend management engagement, the transportation services provider was able to identify the opportunities to improve operational performance and buying power, reduce costs, and provide better management and oversight of suppliers while strengthening relationships with the internal and external stakeholders.

Key questions answered in this spend management engagement

TS2The Results

SpendEdge’s spend management solution offered the transportation services provider gain actionable insights on the organization’s overall spend data across the logistics Industry. The client also improved their spend visibility and increased their compliance with procurement policies. This helped them reduce their overall spend by ~74%.

To know more about our spend management solutions

request free proposal


Request free proposal