Tag: strategic sourcing analysis

photography work space on top view

How Can a Cost-effective Strategic Sourcing Process Benefit Companies?

Strategic sourcing process

Even now, many companies consider purchasing to be simple and merely a means to an end. The key aim of any procurement team is to meet the financial requirements while minimizing costs for their organization. Most teams, therefore, pitch competing suppliers against one another to cut purchasing costs. This hardly gives companies any scope to formulate an effective procurement strategy and build goodwill among suppliers. As a result, companies find it challenging to implement a strategic sourcing process and improve their overall purchasing efficiency. Following this traditional purchasing approach results in a lack of visibility, missed opportunities, and cost synergies for businesses. The absence of a strategic sourcing process also hampers the quality of products and negatively impacts the decision-making process.

At SpendEdge, we understand the impact that following a cost-effective strategic sourcing process can have on your business. And to help sustain profitability, our team of experts has highlighted some of the key benefits of following a strategic sourcing process. Though knowing more about the key benefits of a strategic sourcing process can help businesses achieve significant cost-savings, let’s first understand why companies need it and the impact it can have on your business. (more…)

IR34

Strategic Sourcing Analysis Helps an Anti Inflammatory Drugs Manufacturer Develop and Implement a Strategic Procurement Plan – A Pharmaceutical Industry Engagement

Engagement Overview:

A leading player in the pharmaceutical industry was looking at streamlining their procurement process to maximize savings across their supply networks. The failure of their inefficient sourcing strategies had greatly impacted their overall business revenue, as a result of which they wanted to leverage strategic sourcing analysis to gain a competitive advantage.

SpendEdge was approached by the anti inflammatory drugs manufacturer to leverage its expertise in offering strategic sourcing solutions for players across industries. The strategic sourcing engagement entailed a quantitative analysis of various supply chain categories to devise a robust sourcing strategy.request proposal

About the Client:

A top-notch manufacturer and supplier of anti inflammatory drugs operating in the U.S., which is well-known for receiving the WHO and GMP certificates for excellence in delivering quality products. 

Business Challenge:

The pharmaceutical industry client was facing several challenges owing to their inefficient sourcing strategy.


How did SpendEdge Help the Client?

  • Step 1: Conducted an internal needs analysis

Strategic sourcing begins with the process of benchmarking the current performance of the client to identify internal needs and targets before devising the appropriates sourcing strategy. This involved the collection of different types of data from different departments across the organization.

  • Step 2: Analyzing the suppliers market and gathering relevant supplier information

This step revolved around the identification of potential suppliers that are feasible sources of raw materials. The potential supplier base was then categorized based on their ability to cater to the dynamic needs of the anti inflammatory drugs manufacturer.

  • Step 3: Developing and implementing a sourcing strategyrequest proposal

The development of an appropriate sourcing strategy was dependent on the data collected in the first two phases of the engagement. However, determining the right sourcing strategy for a business depends on several factors such as the competitiveness in the supply market, the overall business strategy, and the organization’s risk tolerances.


Key questions answered in this strategic sourcing analysis include:

Pharmaceutical Industry


Benefits of the Engagement:

The strategic sourcing experts at SpendEdge devised a three-step comprehensive approach to help the anti inflammatory drugs manufacturer devise an effective strategy. With the help of strategic sourcing, the client was able to achieve cost reduction and improve supplier relationships. The proposed strategic sourcing framework also enabled them to gather and analyze spend data worth more than $50 million. This enabled them to categorize and deploy the right sourcing strategy and negotiate favorable terms with suppliers, taking advantage of the significant economies of scale. The solution offered also included the development of category-specific sourcing strategies, TCO models, and a detailed supply market analysis.

Why is strategic sourcing essential in the pharmaceutical industry?

Strategic sourcing offers pharmaceutical industry players with several new opportunities to assess the current state of their sourcing strategies and empowers them to effectively use resources and leverage supply market intelligence in devising suitable supply chain strategies.Request Demo

At SpendEdge we collaborate with pharma market leaders, drug manufacturers, medical device manufacturers, and other firms operating in the pharmaceutical industry to help them devise precise sourcing strategies. Our strategic sourcing solutions are aimed at optimizing the supply chain while driving value and cost reductions to ensure our clients gain the strategic advantage to thrive in a competitive market landscape.  


Our Findings:

Our market expertise enables us to understand the unique nature of every market segment, and the complexity in the pharmaceutical industry is what drove us to leverage strategic sourcing analysis to devise robust sourcing strategies that proved to be valuable for the anti inflammatory drugs firm in the long run.

SpendEdge’s strategic sourcing solutions are guided by the principles of supply market intelligence to help clients enhance their overall supply chain efficiency. In this strategic sourcing engagement, the three-step approach aided the pharmaceutical industry client to integrate the new sourcing strategies.Request Demo

While inefficient sourcing strategies tend to paralyze most supply chain functions. Successful organizations are the ones that can effectively assess and implement effective sourcing strategies. To do so, our strategic sourcing team helps companies adapt to their culture by working seamlessly with industry stakeholders and decision makers to analyze categories within the pharmaceutical industry.

The strategic sourcing team at SpendEdge comprises of subject matter experts with wide-ranging individual expertise. This enables us to understand what is important to pharmaceutical industry clients and offer custom recommendations and unique solutions to tackle their supply chain challenges.


 If your organization is on the lookout for an objective way to reduce procurement related costs, we’re here to help. Wait no more! Go ahead and get in touch with our strategic sourcing experts to develop custom configured engagement models and procurement research deliverables.

Contact US


Related Posts:

IR6

Developing Cutting-edge Cost Reduction Solutions with the Help of Strategic Sourcing Analysis – A Packaging Industry Engagement

Engagement Overview:

The client, a leading manufacturer of paper products used in the packaging industry, wanted to analyze their sourcing strategies and develop a cutting-edge cost reduction strategy. To do so, the client approached SpendEdge to help them request proposal leverage its strong expertise in strategic sourcing analysis to enhance spend visibility and drive profit margins.

This engagement entailed the use of a detailed quantitative analysis of various categories within the supply chain to develop the best sourcing strategy. During the course of this strategic sourcing engagement, our procurement experts leveraged proven cost reduction strategies for both direct and indirect spend categories. Moreover, working alongside our sourcing experts helped the packaging industry firm to promote enterprise-wide efficiency while meeting their cost reduction goals.

About the Client:

A leading paper products manufacturer producing over 30 million metric tons of paper products per year.

Business Challenge:

Paper products aren’t going away in the digital age, but the industries sure are transforming themselves to keep abreast of the changing market landscape. Confronting digital transformations brings in several new challenges for players in the packaging industry.

The packaging industry client had grown a great deal in recent years by absorbing other smaller organizations operating in the same industrial landscape. However, owing to such acquisitions, it found itself battling several challenges common to organizations that employ mergers and acquisitions as a growth strategy. To overcome such challenges the company recognized the tremendous scope for leveraging strategic request proposal sourcing analysis and positioning themselves for higher growth through higher profit margins and lower debts.

This strategic sourcing engagement entails the development of a robust sourcing strategy that helped the paper products manufacturer to realize huge savings in indirect and MRO spend. Also, it helped them reduce sourcing costs by 20 percent.


How did SpendEdge Help the Client?

Our strategic sourcing analysis experts joined forces with the packaging industry client to help them analyze their sourcing strategies and develop a robust strategy that focuses on cost reduction.

This process involved the development of a five-step strategic sourcing process, which can be categorized into the following phases:

  • Step 1: Supply market analysis and category profiling

The initial step revolved around the process of analyzing the supplier’s marketplace for potential risks and opportunities. Understanding various spend categories acts as the essential first step in any strategic sourcing analysis engagement. This involves defining each category and the commodities related to each category.request proposal

  • Step 2: Strategy development

Conducting an external review of the supply market is a pre-requisite to any strategic sourcing engagement. However, the key to developing a robust strategic sourcing strategy lies in deciding how to procure materials easily while minimizing the associated risks and cost. In this engagement, we devised a robust strategy by considering the competitiveness in the supply market and the alternatives to the existing suppliers in the market.

A detailed review of the supply market further helped the packaging industry client to gain a clear understanding factors affecting their sourcing strategies. Also, with the help of such detailed market inputs, the client was able to comprehend the near-term changes in the business environment.

  • Step 3: Selecting the sourcing process

It is essential to select a feasible sourcing process and ‘Request for a Proposal’ for soliciting bids. The devised sourcing process included factors such as delivery requirement, product specifications, pricing strategies, and other essential evaluation criteria.Request Demo

  • Step 4: Supplier selection and negotiation strategies

This step deals with supplier selection and the development of negotiation strategies. Though the process is a tedious one, multiple rounds of negotiations helped the client to develop a list of the best suppliers and shortlist the suitable negotiation strategies.

  • Step 5: Implementation and benchmarking

The developed approach helped the packaging industry client to achieve their cost reduction objectives; thereby, raising the bar for enhancements in profit margins. This five-step approach to strategic sourcing enabled the client to devise the best suitable strategy to drive category growth. Doing so resulted in a 20% reduction in sourcing costs, improvements in profit margins, and enhancements in ROI.


Key questions answered in this strategic sourcing analysis include:

strategic sourcing

Request Demo


Benefits of the Engagement:

With the help of SpendEdge’s strategic sourcing analysis, the packaging industry client was able to analyze around $30 million worth of spend data. This helped them identify the best strategy to reduce cost and enhance procurement efficiency. The other aspects of the solution included – category specific sourcing strategies, the creation of TCO models for key categories of spend, and a detailed supply market analysis.

Why is strategic sourcing analysis important for packaging industry players?

Packaging industry firms often tend to overlook the substantial savings that strategic sourcing can offer players in the packaging and shipping category. ‘Packaging’ as a category has witnessed several changes in the supply market over the past few years. The volatility of raw material prices, consolidation in the industry, increasing demand for green packaging, and the rapid changes in regulations are a few macro factors that have had a momentous and long-lasting impact on the packaging supplier market.  Additionally, being core to several other business functions, the risks associated with this category and its Get More Info_SEimpact on price changes are significant. Hence, procurement officials are required to keep abreast with such changes to not just reduce costs but also drive category growth.

SpendEdge’s strategic sourcing analysis begins with the detailed understanding of the supply market to help organizations adapt to the changes. Our experts make sure they understand the specifics of your organizational requirements to develop the best strategy that enables the development of an optimal mix of products and suppliers at the lowest possible price. SpendEdge’s expertise in strategic sourcing analysis spans several spend categories and sub-sectors across industries, making it one of the top procurement leaders in the world. SpendEdge has also assisted leading market players across industries to achieve breakthrough savings on the procurement spend, reduce supply chain risks, and develop stronger supplier relationships.

Our Findings:

This strategic sourcing engagement points out to the fact that besides develop new and innovative products, companies have to gauge their direct and indirect spend categories to drive savings and ensure a healthy bottom line. However, driving best-value sourcing can be difficult without the use of a robust strategy and timely supply market intelligence. Strategic sourcing analysis not only helps in cost reduction but also paves the way for organizations to confront the ever-increasing procurement challenges.

If your organization is on the lookout for an objective way to reduce procurement related costs, we’re here to help. Wait no more! Go ahead and get in touch with our strategic sourcing experts to develop custom configured engagement models and procurement research deliverables.

Contact US


 Related Posts:

IR16

Strategic Sourcing Analysis Helps a Renowned Prosthetic Device Manufacturer to Build Stable Supply Partnerships

Overview of the Healthcare Industry

The emergence of technically advanced prosthetic devices in the healthcare industry is expected to drive the growth of the global prosthetic devices market. The prosthetic devices market is currently experiencing a huge shift from conventional prosthetics to technologically advanced prosthetics. Also, the manufacturers of prosthetic devices are increasingly focusing on developing low-weight prosthetics by incorporating flexible polymers. Additionally, on the basis of technology the prosthetic devices market is divided into three segments, namely conventional, electric powered, and hybrid prosthetics. Among these, the electric powered prosthetic devices segment accounts for the highest revenue share of the market.

Let’s take a look at the key healthcare industry trends that are shaping the future of the global prosthetic devices market:

  • Customization of prosthetic devices: Leading prosthetic device manufacturers are increasingly offering customized services to cater to the individual needs of the end-users. There is a higher preference for customized prosthetic devices in the healthcare industry as such devices provide a higher level of functionality when compared to the traditional devices.
  • Innovations in prosthetic device technology: The prosthetic device market has experienced a steady innovation in terms of technology. This has resulted in the availability of advanced prosthetic devices that make use of low-temperature materials for manufacturing prosthetic devices.

Though several factors are favoring the growth of the global prosthetic devices market, there are a few challenges faced by players in this market space. To overcome the challenges,request free proposal leading players are now leveraging strategic sourcing analysis to devise and implement better sourcing strategies.

The Business Challenge and Journey

The client a well-known prosthetic device manufacturing firm with several business units spread worldwide was looking at developing robust strategic sourcing analysis capabilities. Not surprisingly, the prosthetic device manufacturer found itself battling several problems common to organizations that employ 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 overall sourcing costs by 15%. Also, since the company was operating using a semi-automated process to analyze its spend data, it had to compromise on the speed of data updates, efficiency, general accuracy, and analytic capabilities. For any organization of such size, this reduction would constitute a considerable sum—and it would go straight to the bottom line. With this in mind, the prosthetic device manufacturer approached the experts at SpendEdge to help them leverage the use of strategic sourcing analysis and implement strategies to enhance their supply chain performance.

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

Who should implement strategic sourcing?

SpendEdge’s strategic sourcing analysis offers end-to-end solutions that reduce the overall purchasing costs and enhance the value of supplier relationships. The adoption of strategic sourcing acts a guide for firms to devise standardized procurement processes. Hence it’s essential for every organization to use strategic sourcing principles to gain a better handle on its supply chain processes.

Furthermore, implementing the best practices of strategic sourcing provides an extra boost to increase the company’s profit margins. The goal is to look beyond daily price and delivery time challenges. Though strategic sourcing seems to be a complicated process, it helps you understand the relationship between your suppliers and your organization.

Fundamental questions answered in this strategic sourcing analysis study include:


The Result

SpendEdge’s strategic sourcing analysis engagement offered insights that helped the client to improve their sourcing practices. It also assisted the prosthetic device manufacturer to increase their business efficiency by formalizing the way spend information is gathered, analyzed, and factored into the procurement process. Moreover, the client was able to streamline their buying decisions and reduce procurement costs. Also, strategic sourcing facilitates the building of supply partnerships that are stable. Better supplier relationships eventually lead to improvements in quality, as suppliers and customers can work in tandem to measure the defect rates, as well as their cause.

To know more about strategic sourcing analysis and how it can help prosthetic device manufacturing firms

request free proposal


Related Posts

IR14

Strategic Sourcing Analysis Helps A Leading Energy Drinks Manufacturer Transform Procurement and Drive Higher Savings

Overview of the Energy Drinks Market

The global energy drinks market is anticipated to witness high growth owing to the consumer’s increasing attention towards health consciousness and hectic lifestyle. These beverages are intended to give instant energy along with providing mental and physical stimulation. The main ingredients, which helps in providing stimuli, is caffeine. Taurine is another significant component, which is essential for skeletal muscle development and cardiovascular function. request free proposalFurthermore, significant growth in the number of athletes and sports persons is likely to support the growth of this market in the coming years.

However, a few factors are expected to restrain the growth of the energy drinks market. These factors include:

  • Negative publicity: Negative publicity in the media and implementation of stringent government regulations across the globe are posing serious challenges to the development of the energy drinks market. Bad publicity picked up by the mass media can have a substantial negative impact on the brand’s name and sales and profitability for firms in this space.
  • Rising health concerns: Today, consumers are increasingly becoming conscious of the health risks associated with the consumption of energy drinks. Therefore, the recent increase in health concerns is another factor that is hindering the growth of the market.

The Business Challenge and Journey

The client, a global manufacturer of energy drinks with manufacturing units spread across the globe, wanted to develop robust sourcing analysis capabilities across categories and geographies to enhance their visibility into spend areas and drive higher savings. Additionally, the client wanted to implement a robust procurement automation system to streamline its sourcing and procurement processes, boost transparency, and increase savings across the supply chain.

The strategic sourcing analysis experts at SpendEdge tailored a cohesive research approach. The approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures to help the client enhance their overall procurement process.

During the course of this strategic sourcing analysis engagement, the energy drinks manufacturing client was able to deploy an automation system solution that integrated the end-to-end procurement process from source to contract — one that connected the results of sourcing events to the resulting buyer and supplier contracts. Furthermore, the client not only developed a best-practice methodology to reduce sourcing cycle time but also created long-term interrogable repositories of supplier responses and sourcing activities across their business units.

Key questions answered in this strategic sourcing analysis engagement

The Results

SpendEdge’s strategic sourcing analysis engagement helped the client take advantage of the potential opportunities, changing market factors, and unforeseen circumstances with rapid responses. This helped them achieve efficiency gains across their business units.

To know more about our strategic sourcing analysis solutions

request free proposal


IR31

SpendEdge’s Strategic Sourcing Analysis Helps an Industrial Equipment Manufacturer Transform Procurement Function

Overview of the Industrial Equipment Manufacturing

The industrial equipment manufacturing industry is responsible for the fabrication of products intended for industrial use from raw materials around the globe. It is the output of this industry which has made further mass manufacturing possible in most other industries. Industrial equipment is typically grouped into seven different segments. Construction, agricultural, and mining machinery; industrial machinery; and service and commercial machinery are all special-purpose machinery designed for a specific industry. One of the key trends in the industry is the rising use of high-tech production techniques. As a result, companies are introducing advanced technologies in response to pressure from domestic and foreign competitors. Computers, robotics, and programmable equipment are common, resulting in increased productivity due to improved efficiency and a decreased requirement for unskilled labor.

However, a few factors are expected to hinder the growth of the industrial equipment manufacturing industry. These factors include:

  • The rise of the Internet of Things (IoT): The IoT represents the ever-growing network of physical objects embedded with sensors and communication technology, letting them exchange data with users and manufacturers. Internet-connected machinery and equipment are having a tremendous impact on industrial manufacturing. Assets that can communicate performance data to operators in real-time provide data that guarantees maximum uptime reliability and prevents protracted outages.
  • The economic growth of developing markets: The demand for manufactured goods is rising fast as countries like India, China, and Brazil are experiencing strong economic growth. As a result, companies are raring to provide superior products and services while being cost-effective.

These factors are compelling industrial equipment manufacturers to leverage the use of strategic sourcing analysis solutions. Strategic sourcing analysis solutions help companies in generating optimal sourcing and procurement method and measurement tools to drive savings. request free proposalAdditionally, these solutions assist firms operating in the industrial equipment manufacturing sector to centralize the suppliers’ responses and compare the responses within the client’s system.

The Business Challenge and Journey

The client, a renowned manufacturer of industrial equipment with business operations spread across the globe, wanted to develop robust sourcing analysis capabilities across categories and geographies to enhance their visibility into spending and drive higher savings. Additionally, the client wanted to implement procurement automation technologies to streamline its sourcing processes, increase savings, and boost transparency.

The strategic sourcing analysis experts at SpendEdge tailored an integrated research approach to help the client improve their overall procurement process. The integrated approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures.

With the help of SpendEdge’s strategic sourcing engagement, the industrial equipment manufacturing client deployed a comprehensive technology solution that integrated the end-to-end procurement process from source to contract — one that connected the results of sourcing events to the resulting buyer and supplier contracts and reflected the negotiated contract terms. Additionally, the client not only developed a best-practice methodology to reduce sourcing cycle time by also created a long-term interrogable repository of supplier responses and sourcing activities across business units.

Key questions answered in this strategic sourcing analysis engagement

The Results

The industrial equipment manufacturing client was able to take advantage of new opportunities, unforeseen circumstances, and changing market factors with a rapid response and in turn drove savings. Additionally, due to the ease of use and a single view of all procurement activities, the client reported substantial efficiency throughout their processes.

To know more about our strategic sourcing analysis solutions

request free proposal


green supply chain

Strategic Sourcing Analysis Helps a Specialty Chemicals Client Reduce Time and Energy Spent on Transactional Activities

Overview of the Specialty Chemicals Industry

Globally, the chemical industry generates a revenue of $3 trillion with a significant chunk of the contribution coming in from the Asian countries. Typically, the global chemical industry comprises of a diverse and complicated range of products such as specialty chemicals, agricultural chemicals, commodity chemicals. The specialty chemicals sector is driven by the increasing technological innovations and chemical expertise. Additionally, with the increase in the number of M&A across the specialty chemicals space, firms are focusing on realigning their offerings to improve competencies and generate higher revenues. Organizations are also increasing their focus on developing their core strengths and acquisitions to drive growth and achieve a higher shareholder value within the specialty chemicals industry.

However, the specialty chemicals sector is prone to a few challenges, including:

  • Increasing competition: Today, staying ahead of the competitors becomes challenging as the threat of new entrants in the specialty chemicals space is relatively high. This sector is also witnessing competition from non-traditional sectors including the energy, mining, and utilities. To remain ahead of the competition, leading organizations are facing relentless pressures to offer product and service offerings while being cost-effective.
  • Stringent protocols: Over the past few years, the specialty chemicals industry is witnessing regulations right from the manufacturing, labeling, and handling from the supply to storage of the chemicals. Additionally, the recurrent fluctuations in regulatory compliance are driving firms to migrate toward better ways to manage the cost of compliance.

These factors are compelling firms within the specialty chemicals space to leverage the use of strategic sourcing analysis. Strategic sourcing analysis help firms to speed up the procurement process and ensure the specialty chemicals industry achieve substantial profits. These solutions also assist companies in generating optimal sourcing and procurement measurement tools to drive savings across the supply chain.

request free proposalFurthermore, the strategic sourcing analysis solutions provided by SpendEdge help clients streamline the procurement process, thereby, ensuring best in class service quality and pricing.

The Business Challenge and Journey

The client, a leading specialty chemicals manufacturer, wanted to identify the right vendors and reduce procurement spends. The client also wanted to balance the increase their focus between strategic aspect and the transactional aspect of procurement with an aim to achieve long-term monetary benefits. Additionally, they were also on a constant lookout for innovative approaches to incentivize their channel partners.

To help the client reduce time and energy spent on transactional activities, the strategic sourcing experts at SpendEdge tailored an integrated research approach. The integrated approach included primary research methodology coupled with qualitative and quantitative data collection procedures. The experts also gathered information from a wide array of secondary sources such as paid, company presentations, industry forums, and industry database within the specialty chemicals space.

With the help of the strategic sourcing analysis engagement, the specialty chemicals client was able to implement new sourcing strategies and devise best practices across business units, thereby, helping them capture early payment discounts and realize higher savings. This engagement also helped them identify and achieve procure to pay (P2P) improvements that would eventually drive financial and product availability benefits.

Key questions answered in this strategic sourcing analysis engagement

qwegfqgqThe Results

During the course of this strategic sourcing engagement, the specialty chemicals industry client gained actionable insights into the long-term price validity coupled with the clauses to absorb currency fluctuations. This helped them reduce time and energy spent on transactional activities. Additionally, the client was provided with recommendations on a broad range of sourcing categories including supply chain categories, direct material, indirect material, and marketing and sales.

To know more about our strategic sourcing analysis solutions

request free proposal

Global-Interior-Design-Software-Market_T

Strategic Sourcing Helps an Apparel Industry Client Realize $4 Million In Savings

Overview of the Apparel Industry

Initially, clothing was used to protect the human body from harsh environmental conditions. Later, as the wheels of time started spinning, new trends emerged, and manufacturing of fashionable garments came into existence. The apparel industry produces finished clothing such as men’s, women’s, kid’s clothing, and other intimate apparel. Apparels manufacturing is one of the most in-demand businesses today. To remain competitive, apparel industry manufacturers seek to expand their business in various ways. Furthermore, factors such as volatile fashions, short product life cycle, unpredictable market trends and impulse buying behavior of customer are to be given highest importance by manufacturers to sustain themselves in the apparel industry segment.

The apparel industry plays a crucial role in developing a nation’s economy in terms of revenue generation and creation of employment. The apparel industry is undergoing a drastic change due to global sourcing and high level of price competition. Moreover, the rise in disposable incomes, favorable demographic factors, a substantial shift towards branded apparel, and change in consumer behavior has resulted in a positive growth for the global apparel industry.

Let’s take a look at some of the critical factors that are expected to influence the growth prospects of the apparel industry in the coming years.

  • Sustainability: Due to consumer’s ever-increasing environmental awareness and the detrimental effects the fashion industry has on the environment, consumers are now choosing to invest in brands that are actively seeking sustainable alternatives to conventional apparel manufacturing. Moreover, consumers have become hypersensitive to the way retailers manufacture their products regarding acceptable health and safety standards, labor practices, water consumption, and disposal. 
  • Product Sourcing: Sourcing is a two-pronged issue in the apparel industry. Increasing awareness of working environments in facilities across the supply chain, from garnering raw materials to manufacturing and shipping, puts pressure on firms operating in the apparel industry to practice responsible procurement that can enhance their brand image.

As a result of these factors, apparel industry firms have started leveraging the use of strategic sourcing solutions. Strategic sourcing analysis help firms increase focus on spend and supplier management and streamline the procurement process, thereby, ensuring service quality and best in class prices over the long term. request free proposalThese solutions also assist firms in generating optimal sourcing and procurement methods and measurement tools to drive savings across the supply chain and business units.

The Business Challenge and Journey

The client, a leading apparel industry firm with business units spread across several geographies engaged in manufacturing, sourcing, marketing, licensing, and supplying footwear, apparel, and accessories to the retail sector was focusing on top line growth. The selected growth path did not factor in optimization of procurement costs, neglecting obvious savings. This neglect led to an excessively large supply base, unleveraged spend, and mediocre service levels.

To help the apparel industry firm effectively manage its unwieldy supply base, the strategic sourcing specialists at SpendEdge tailored a comprehensive research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this strategic sourcing engagement, the apparel industry client was able to identify suppliers offering best in class service levels. The client also identified and implemented procure to pay (P2P) improvements that would eventually drive financial and item availability benefits. Furthermore, an RFx tool helped the firm’s procurement isolate key cost-drivers for each category and engage suppliers in live auction events, thereby driving bottom-line savings.

Key questions answered in this strategic sourcing engagement

The Results

With the help of this strategic sourcing engagement the apparel industry client actively involved in a broad range of strategic sourcing categories including direct material, supply chain categories, marketing & sales, and indirect material. This helped them realize $4 million in savings.

To know more about our strategic sourcing solutions

request free proposal

 

Global-Interior-Design-Software-Market_T

Strategic Sourcing Analysis Helps a Healthcare Industry Major Reduce Time and Energy Spent on Transactional Activities

Overview of the Healthcare Industry

The healthcare industry includes doctors, hospitals, and public and private establishments providing remedial, diagnostic, preventive, and therapeutic services. This sector also includes health insurance firms and medical equipment and pharmaceutical manufacturers. A few trends impacting the growth of the healthcare industry include the development of expensive clinical innovations, the rise in the amount of aging population, growing prevalence of chronic diseases and comorbidities, increasing patient awareness, expectations, and knowledge of healthcare services.

Let’s look at some of the fundamental factors that are expected to influence the growth prospects of the healthcare industry in the coming years.

  • Value-based procuring: Healthcare industry firms must determine their tolerance for risks across the supply chain and device sourcing risk strategies to achieve value-based procurement models and gain a stronger foothold in this industry space.
  • Providing higher value at lower costs: In present day’s competitive scenario delivering higher value to the customer at lower costs contributes to significant growth and performance improvements in the healthcare industry. As a result, global firms operating in the healthcare industry space must strive to create a better procurement system that provides higher quality services at lower costs.

These factors are compelling firms operating in the healthcare industry to leverage the use of strategic sourcing analysis studies. These solutions assist businesses in generating optimal sourcing and procurement methods and measurement tools to drive savings across the supply chain. request free proposalFurthermore, to speed up the procurement process and ensure the healthcare industry can achieve substantial profits is only possible by making use of strategic sourcing solutions.

The Business Challenge and Journey

The client is a leading firm in the healthcare industry space. The company’s revenue was driven by channel partners. As a result, they were on a constant lookout for innovative methods to incentivize their channel partners. The client also wanted to identify the right vendors and reduce procurement spends. They also wanted to balance the focus between the strategic aspect and the transactional part of procurement with an aim to achieve long-term benefits.

To provide the client actionable insights into the category and various opportunities to help them apply best practices, the strategic sourcing specialists at SpendEdge tailored an integrated research approach. The integrated approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures.

During the course of this strategic sourcing analysis engagement the healthcare industry client developed a catalog to help reduce maverick spend; increase the visibility of marketing and procurement teams as well as the suppliers, and define clear lead times for any future procurement activities.

Key questions answered in this strategic sourcing analysis engagement

The Results

This strategic sourcing analysis engagement helped the healthcare industry client reduce time and energy spent on transactional activities. They also gained insights into the long-term price validity with clauses to absorb currency fluctuations. Through this engagement, the client also achieved a total cost savings of 14%.

To know more about our strategic sourcing analysis solutions

request free proposal

Request free proposal