Tag: supplier landscape assessment

IR33

Six Effective Ways to Build Better Supplier Relationship Management

What is supplier management process? 

Most organization rely on third-party vendors or suppliers for the purchase of goods and services. Therefore, how an organization engages, manages, and communicates with their suppliers and builds supplier relationships is critical to their overall success. Supplier relationship management refers to the process systematic assessment of the suppliers’ assets and capabilities in view of the organizations overall business strategy. This determines activities to engage in with different suppliers, and planning and executing of all interactions with suppliers to maximize the value realized through those interactions. Supplier relationship management seeks to develop a two-way, mutually beneficial relationships with the strategic supply partners of a company. Supplier relationship management helps build better supplier relationships and thereby achieve greater levels of innovation and competitive advantage than could be achieved by operating independently or through a traditional, transactional purchasing arrangement.

Supplier management strategy and solutions for business

The strategic approach to supplier relationship management has always been critical for businesses that rely on third-party suppliers. For businesses that strive to succeed in the market, having trusted relationships with dedicated suppliers should be one of the primary goals. In this blog post, we are going to take a closer look at some of the key supplier relationship management strategy that will help you improve relationships with suppliers and streamline your supplier relationship management framework:

Suppliers are not just vendors

For a smooth supplier relationship management, businesses must consider their suppliers as their partners. This partnership should be based not only on financial transactions but also on mutual trust and loyalty between both parties. Suppliers should be made to feel like they are a part of the business. They must be informed about your processes, such as product launch and promotions. It is also essential to listen to their concerns or grievances. 

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IR39

4 Effective Strategies to Make Strides in Supplier Relationship Management

Supplier relationship management (SRM) is an integrated approach that addresses and provides benefits for both the buyer and seller sides. It should be noted that not all suppliers are the same, so not all customer-supplier relationships should be dealt with through a single strategy. The typical goal of supplier relationship management is to streamline and improve processes between a buyer and its suppliers. It is all about developing a mutually beneficially relationship with suppliers, especially those deemed as most strategic to the brand, to promote quality, efficiency, and innovation among several other benefits. As with many procurement activities, at the most basic level, supplier relationship management can be used to reduce both prices paid and costs to the organization. Developing appropriate styles of interaction can also make it is possible to save money. The key to developing an effective supplier relationship management approach is a well-understood supply base.

Strategies for better supplier relationship management

Leverage technology

Investing in a good supplier management software helps companies keep track of information about their suppliers in one place. Companies can also take one step further and install an advanced purchase order management software which is useful in creating, processing, and tracking purchase orders with the suppliers.

Ensure timely payments

Fulfillment of payments on time is a vital element of an effective supplier relationship management. This is also a critical step in ensuring that the company’s valuable suppliers are not lost. Timely payments also facilitate companies to establish their credibility and reliability as a customer to their suppliers. Just like companies like to receive prompt delivery of goods and services from the suppliers, the suppliers expect prompt payments. In case companies are unable to make payment on the date agreed, then they must inform the supplier as soon as possible with the date on which they can expect the payment.

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Make detailed agreements

Supplier relationship management is a non-negotiable in the case of companies that buy from a vendor on a regular basis. Begin by listing out what both parties expect from the partnership such as item or service description, price, delivery terms, payment terms, and communications. Then have both parties sign it. The complexity of this document depends on the business requirements. A well-documented supplier relationship agreement reduces the possibility of confusion or disputes and paving way for better supplier relationship management.

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IR13

Top 5 Olive Oil Manufacturers Around the World

Olive oil, a liquid fat obtained from olives, is commonly used in cooking and has become increasingly popular in the recent times due to its health and wellness-based benefits and effectiveness in culinary applications. The cultivation of the olive trees originated from the Mediterranean basin where wild olives were collected as early as the 8th millennium BC. The olive oil market is a highly regulated one with 90%–95% of international production being governed by the IOC. The oil is commercially graded based on its acidity, measured by the weight of free oleic acid within a specific quantity. Virgin olive oil, extra virgin olive oil, refined olive oil, and olive pomace oil are the different kinds of olive oil. SpendEdge’s procurement market intelligence report on global olive oil market outlines the growing trend of incorporating healthy dietary habits in developed and emeContact USrging economy as the most significant growth driver in this market. The report also covers the top olive oil manufacturers across the world.

Top 5 Global Olive Oil Manufacturers

Deoleo

Deoleo is a Spanish multinational company and is a world leader in sales of bottled olive oil. The company sells its product in over 60 countries and has a product portfolio with 40 brands including Carbonell, Carapelli, Bertolli, And Sasso. Among the top global olive oil manufacturers, the company also owns leading brands in seeds oil market in Italy and Spain alongside a major presence in the dressings, vinegar, and table olives market. Their brand Carbonell is the leading brand of olive oil in Spain and also records highest sales figures amongst Spanish olive oil brands.Request Free Sample

Sovena

Sovena is a leading agri-processor that operates across the olive oil value chain right from production to distribution. Apart from olive oil, they also manufacture olives, soaps, and cooking oils and have split their business divisions into verticals including consumer goods, oilseeds, agriculture, and biodiesel. This olive oil manufacturer sells their oil products under various brand name including Oliviera Da Serra, Andorinha, Fula, Olivari, Gem, Tri-Fri, Clarim, Vege, and Fontoliva. In 2016, the Oliveira Da Serra brand of Sovena planned to create a marketing and distribution strategy to expand its presence in China and Russia to continue increasing its penetration in international markets.

IR27

Supplier Market Intelligence Solutions for a Leading Office Supplies Company

Category Overview

The global office supplies market in experiencing slow growth and is expected to undergo significant changes in its current market structure. As online sales channels are growing at a rapid pace, brick-and-mortar retailers are planning to reduce the number of retail stores and increase their online presence to compete with online channels. The supply market is going through a market shift, wherein suppliers are using sustainable raw materials that have a low carbon footprint and are recycled or re-manufactured from post-consumer products.

The Procurement Pain Point

!One of the leading companies in the global office supplies market was losing the supplier base to its competitors due to rapid market expansion. Moreover, rising environmental concerns have impelled organizations to source eco-friendly and biodegradable products, which, in turn, is putting pressure on suppliers to adopt sustainability practices. Despite being one of the top players in the industry, the company lacked analytical tools and techniques to perform a detailed supplier landscape assessment, develop pricing engagement models, and introduce strategic sustainability practices. The client approached SpendEdge, knowing that we have an extensive experience in analyzing the supplier market landscape, to provide strategic and actionable insights.

Procurement Insights Offered and Outcomes

Our supplier market intelligence experts followed a blended research methodology comprising of primary and secondary research. We gathered information about some of the important market influencers in the office supply sector including macroeconomic and microeconomic factors, latest trends, key growth drivers, challenges, and major regulatory framework. Our analysis comprised of supplier insights including the operational and functional capabilities of suppliers, supplier evaluation and selection criteria, and supplier positioning.

Business Impact

2This supplier market intelligence study helped the client gain a complete understanding of the market landscape in terms of pricing models, supplier intelligence, and category essentials by identifying the areas of improvement. Our team developed a set of actionable insights that allowed our clients to cover areas of category spends, demand-supply shifts, cost-saving opportunities, category risk analysis, and category growth drivers. Furthermore, it was followed by an in-depth analysis of the top suppliers, covering unique capabilities from cost-breakup techniques to procurement competencies. In just four weeks, this supplier market intelligence study offered the client a complete, scalable solution on the supplier market landscape and pricing models. Moreover, the study also provided insights into cost-saving opportunities and supplier engagement models.

This procurement market intelligence study offered the client a complete, scalable solution on the supplier market landscape and pricing models including category spend analysis, demand-supply shifts, and strategic sustainability practices.

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IR36

Assessment of Corporate Training Services Market Helps a Leading Pharmaceutical Company

Category Overview

Corporate training services refer to training programs conducted by service providers to improve the skill sets, knowledge, and productivity of the workplace of organizations. These programs are aligned to meet the targets and the set business goals. An effective training program comprises an identification of training needs, recognizing organizational objectives of training, framing action plans for training, implementing the action plan, and assessing the overall process. The corporate training market worldwide is highly fragmented due to low entry barriers for new entrants; thereby, providing buyers with an advantage of bargaining power. These training services help organizations focus on increasing their ROI by decreasing the development timelines of their workforce.

The Procurement Pain Point

It is noted that many companies in the pharmaceutical industry are facing challenges in transforming the procurement management system to be entirely strategic. This necessitated the need to gain a better understanding of the best practices for improving supplier relationships, price negotiation strategies, and integrating suppliers with the organizational goals. Furthermore, the client wanted to identify the key service providers who can manage programs on a global scale and also wanted to assess their ability to ensure adequacy of data security and services.

Procurement Insights Offered and the Outcome

To help the client gain a better understanding of the supply market in the global corporate training services market, we referred to a vast database of secondary resources including industry journals and reports, internal databases, industry blogs, and category webinars to understand the latest market trends, pricing models, and supplier engagement models. Our analysts also carried out detailed discussions with the category experts, procurement managers, client consultants, and client account heads to gain comprehensive insights on cost structure, cost-saving opportunities, and sourcing and procurement best practices. Furthermore, this study also helped us understand the short-term and long-term growth trajectories in the corporate training industry.

Business Impact

In a mere span of four weeks, the client was able to gain a clear understanding of the global corporate training market in terms of cost saving opportunities, price negotiation strategies, demand-supply shifts, and suppliers’ data security and service capabilities. This engagement also helped the client understand the procurement best practices and supply market landscape in terms of suppliers’ evaluation and selection criteria, cost breakup, and supplier positioning matrix. Furthermore, the study offered the client with an entirely strategic procurement management system and identification of key service providers.

 

This case study offers comprehensive information on how our procurement market intelligence solutions helped a global pharma company understand corporate training market. 

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Procurement Market Intelligence Solutions Helps a Leading Bank

Category Overview

IT support services is a sub-category of IT services and involves the optimization of IT-related operational activities of organizations via proactive monitoring, maintenance, protection, and provisioning of IT tools and applications. With a rapidly evolving business landscape, almost every industry is facing the need to outsource IT support services and focus on the core capabilities. However, companies face challenges with increasing on-site support costs, evaluation of suppliers’ capabilities, and identification of technologically compatible suppliers.

The Procurement Pain Point

A leading bank wanted to analyze the supply market landscape of the IT support services industry to get a better understanding of key suppliers, price negotiation strategies, and latest procurement trends in the market. Furthermore, the client was looking for an efficient solution focused on category spend analysis, cost structure, and cost saving opportunities in the target region.

Procurement Insights Offered and the Outcome

To help the client with strategic insights into the supply market, SpendEdge’s team followed a triangulated research methodology comprising of primary and secondary research. Our experts referred to a vast database of secondary resources and gathered crucial inputs from industry experts to offer the client with procurement best practices, supply market insights, and pricing models. We carried out a deep-dive assessment of the supply market to assess the suppliers’ operational and functional capabilities, suppliers’ evaluation and selection criteria, supplier engagement models, and indicative pricing.

Business Impact

This procurement market intelligence study offered the client with a better understanding of supply market, price negotiation strategies, latest market trends, supplier engagement models, and major regulatory framework. Additionally, this procurement market intelligence study offered the client with a better decision-making process and strategies regarding the selection of suppliers and setting up a procurement management system.

This case study offers comprehensive information on how our procurement market intelligence helped a global bank understand the supply market for IT support services.

 

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Answers to the questions

Supplier Market Assessment Study on Mining Explosives for a Metals and Mining Company

Category Overview

Most of the explosives produced around the globe find application in the mining industry and are typically used to break large stones into smaller blocks during excavation. Our research shows that mining explosives market accounts for approximately 80% of the global explosives market. On the basis of detonation intensities, mining explosives can be categorized into low-intensity blasting, controlled intensity blasting, and high-intensity blasting.

The Procurement Pain Point

To assess the supplier landscape for mining explosives, the client – a global metals and mining company – approached SpendEdge to engage in a research study focused on the assessment of key suppliers in the market space. The scope of this engagement was to offer the client supply market insights and pricing insights. The supplier landscape assessment would also help the client gain insights on the category essentials, encompassing key components like SLA terms, supplier evaluation criteria, category risk analysis, and category sourcing evolution matrix.

The primary objective of this supplier landscape assessment was to offer the client insights on the recent demand-supply shifts, key market developments, key category growth drivers, procurement best practices, and strategic sustainability practices.

To meet the specific category requirements of the client, SpendEdge’s team of procurement market intelligence experts followed a blended approach of combining in-depth secondary research with primary interviews and track the latest developments and procurement trends in the market. Moreover, our procurement market intelligence experts also reached out to industry experts and key stakeholders to understand the market’s short and long-term growth prospects and changing trends for mining explosives.

Procurement Insights Offered and the Outcome

To address the requirements specific to the needs of the client, we deployed a team of analysts who specialize in assessing the supplier market landscape for various industries. Our industry experts followed a blended research methodology consisting of in-depth qualitative and quantitative research followed by data analysis and insights development. Our procurement specialists worked directly under a project manager with significant experience in conducting specific procurement studies for the mining industry.

In a mere span of just five weeks, the client was able to gain a clear understanding of the recent demand-supply shifts, key market developments, key category growth drivers, procurement best practices, and strategic sustainability practices specific to the mining explosives industry.

The engagement also helped the client understand the supplier market landscape by assessing the key competitors’ functional capabilities in terms of mining explosives, basting services, mining chemicals, basting consultants, and delivery services.

Our Research Methodology

 

primary and secondary

This case study offers comprehensive information on how our supplier landscape assessment helped a global client understand the market space for mining explosives.

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IR15

Assessment of the Supplier Landscape and Should-cost Analysis for Tank Cleaning Services

The Procurement Pain Point

To understand the supplier landscape and the prevailing market prices for tank cleaning services for above ground storage tanks (AST), a world-renowned petroleum company approached SpendEdge to engage in a supplier landscape assessment and should-cost analysis for the various types of tank cleaning services. The procurement market intelligence engagement helped the petroleum company in identifying the key suppliers for tank cleaning services across the target region and gain insights on the various procurement strategies specific to the petrochemicals industry.Contact US

The primary objective of this supplier landscape assessment was to help the petroleum company to gain actionable insights into the best methods available for cleaning different types of tanks and provide an assessment of the average cost for cleaning per cubic foot of solids in the tank. Additionally, this supplier landscape assessment and should-cost analysis would also help the petroleum company to eliminate challenges in estimating the cost of cleaning above ground storage tanks, which usually resulted in ambiguous billing.

SpendEdge’s supplier landscape assessment team followed a blended approach of combining secondary research with primary interviews and also tracked the recent procurement trends and developments in the market to meet the specific requirements of procurement heads in the petrochemicals sector. Moreover, to understand the market’s short- and long-term growth in the region under focus, our procurement market intelligence experts also carried out discussions with industry experts and key stakeholders.

Procurement Insights Offered and the Outcome

To address the specific requirements of the client, SpendEdge deployed a team of supplier landscape assessment specialists, working directly under a project manager with substantial experience in conducting similar types procurement market intelligence projects. By following a blended methodology consisting of primary and secondary data collection followed by data analysis and should cost model development, our procurement experts conducted a comprehensive cost analysis and supplier landscape assessment study, which helperequest proposald the petroleum company to gain insights into the supply landscape for tank cleaning services across the target region and their market prices.

In just five weeks, SpendEdge’s supplier landscape assessment team was able to help the petroleum company to understand the best methods available for cleaning different types of tanks and gain insights on the average cost for cleaning per cubic foot of solids in the tank. Additionally, the supplier landscape assessment solution offered by us also helped the client identify various key suppliers for tank cleaning in the target region and gain an understanding of their key offerings or capabilities, geographic coverage, and price range to make robust decisions.

Some of the additional insights offered by this supplier landscape assessment include

  • Development of a list of components of a typical molten salt tank
  • Development of a preliminary cost model
  • Supply market data collection (qualitative and quantitative)
  • Assessment for the weight of each cost component or driver
  • Assessment of the impact of labor costs (location specific)
  • Data model validation and scenario analysis to check the robustness of the developed cost model
This case study offers information on how our supplier landscape assessment helped a global petroleum refining and marketing company understand the supply landscape for tank cleaning services.

 

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