Tag: supplier landscape

IR3

Cost Modeling and Procurement Solutions Help a Leading Mobility Service Provider

Category Overview

Mobility service providers help buyers move their commercial and residential goods either domestically or internationally. These companies offer all inclusive services for re-locations including packing, loading, moving, unloading, unpacking, arranging of items to be shifted, and value-adds such as visa and immigration, insurance, employee, storage, repatriation assistance, and accommodation services.

The Procurement Pain Point

One of the leading mobility service providers for household goods was looking for a procurement market analysis in terms of procurement best practices, pricing models, and key cost drivers in the industry. The core focus was to identify major gaps in supplier market landscape and cost modeling factors for better decision making and strategy formulation. We at SpendEdge, offer a comprehensive and detailed analysis of the category in terms of major cost components, supplier engagement models, and should-cost analysis.

Procurement Insights Offered and the Outcome

To meet the requirements specific to the needs of the client, we carried out an in-depth primary and secondary research. With our vast database of secondary research resources, highly experienced and dedicated analysts, and critical inputs from industry experts, we incline our research to help the client with deep-dive market insights. Furthermore, we follow a three-step research process which includes establishment of cost elements mentioned in the annual reports provided by the listed suppliers, followed by extensive secondary research to understand the percentage break for each cost element within the overall cost structure.

Our procurement market analytics team evaluated the various cost drivers such as variation in sub-contractor fee, increase in minimum wages, adoption of new technology, and volatility in consumable material and operational costs to design the cost model and gain insights on supplier market landscape.

Business Impact

The core focus of this study was to analyze the crucial aspects of cost modeling to get a clear understanding of the cost drivers, cost categories, and cost-saving opportunities. Furthermore, this study also helped the client with a better understanding of supplier selection and evaluation criteria and insights that can lead to optimization of category spends.

This procurement intelligence study offered the client category assessment, supplier market landscape analysis, and procurement best practices.

Want to know more?

Capture

Related Articles:

IR29

Cost Modeling Helps a Leading Conglomerate with Better Negotiation of IT Temporary Staffing Services

Category Overview

Temporary or contractual labor refers to a provisional group of workers who work for organizations for short duration on a contractual basis. To meet temporary requirements, such employees can be easily recruited with the help of sophisticated online and mobile platforms.

The Procurement Pain Point

One of the leading conglomerates in Europe was facing challenges with understanding cost structure of leading IT temporary staffing service providers. Key pain points included gaining visibility on supplier cost structure, key cost drivers, and cost saving aspects of procurement. Despite being one of the top players in the industry, the client lacked the expertise and tools to provide the sourcing team with deep insights into price negotiation. With our precise research methodologies and extensive experience in should-cost analysis, we helped the client gain a clear understanding of the cost drivers, along with valuable information on ways to facilitate judicious price negotiations.

Procurement Insights Offered and the Outcome

With our vast database of secondary research resources, highly experienced analysts, and critical inputs from industry experts, we helped the client identify cost drivers and potential cost saving opportunities. We followed an extensive three-step research process encompassing establishment of cost elements mentioned in the annual reports provided by the listed supplier. This was further followed by refined secondary research to understand the percentage break for each specific cost element within the overall cost structure. We also validated the cost model by conducting primary research with industry experts.

Business Impact

This procurement market intelligence study was to offer the client a comprehensive overview of the cost model and key cost drivers such as increase in payroll taxes and complexity of services and reduced dependence on physical offices for service delivery. Furthermore, this study helped the client with procurement best practices, strategic selection of suppliers, cost-saving and cost reduction, and insights that led to optimization of the category spend.

This procurement intelligence study offered the client category assessment, supplier market landscape analysis, and procurement best practices.

Want to know more?

Capture

Related Articles:

IR20

SpendEdge’s Supply Market Intelligence Solution Helps a Leading Bank

Category Overview

Collection agencies are companies that collect debt on behalf of creditors for a fee or percentage of the total amount owed. Debt collection services are essential for businesses to recover money they lend to customers. The industry is growing significantly across the globe due to growth in retail debt and delinquency rates. Also, a lenient approach toward lending adopted by financial institutions and banks has resulted in growth in the number of mortgage debts, higher credit balances, and low savings rates.

The Procurement Pain Point

The global banking industry is facing challenges with the introduction of technological innovations and entry of new market players. Rising costs of compliance with tightening controls from various regulatory bodies have forced industry leaders to re-think their procurement management strategies. A leading bank approached SpendEdge to carry out an in-depth procurement market intelligence study on the global credit collection market. The client sought a detailed analysis of the supply market, price negotiation strategies, cost-saving opportunities, and procurement best practices. Furthermore, the client also wanted a better understanding of the service level agreement terms, supplier engagement models, and risk mitigation strategies.

Procurement Insights Offered and the Outcome

To address the specific requirements of the client, we deployed a team of analysts who specialize in assessing the supply 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 analysts referred to a vast database of secondary resources to get a detailed perspective of the latest market trends, major suppliers in the target region, cost structure, pricing models, and major regulatory framework. Furthermore, to gain deep insights of the supply market, our analysts engaged in detailed discussions with the category experts, procurement managers, and category heads of suppliers.

Business Impact

This study provided the client with a better understanding of the supply market especially suppliers’ operational and functional capabilities, indicative pricing, and suppliers’ selection and evaluation criteria. Furthermore, this study also helped the client gain deep insights on cost-saving opportunities, price negotiation strategies, best-valued cost categories, market drivers, and category risk.

This case study offers comprehensive information on how our supply landscape assessment helped a global client understand the market space for credit collection services.

 

Want to know more?

 Capture

 

Related Articles:

School and office accessories on wooden background

Market Intelligence Study on Paints, Coatings, and Specialty Materials

The latest procurement market intelligence study by SpendEdge on the supply market for steel drums in the paints and coating market helps companies in the chemical industry to gain detailed insights on the preferred procurement models, major service providers, demand-supply shifts, category spend analysis, competitive analysis, and pricing and costing overview.

Growth trends in the paints, coatings, and specialty materials market

The rise in construction activities and the establishment of stringent environmental laws is driving the global market for paints and coatings. Specialty chemicals find specialized applications, especially for industry-specific requirements. New environmental standards will reduce the consumption of VOC paints and coatings and boost the demand for polymers and plastic additives, agrochemicals, construction chemicals, electronic chemicals, industrial and institutional cleaners, and surfactants. The manufacturers in the market are focusing on developing environmentally friendly, low VOC paints and coatings that will not only comply with the stringent environmental laws but also cater to the ever-changing consumer tastes and preferences.

Technological advancement and product innovation led to the launch of nanocoatings in the global chemical market. Nanocoatings are advanced coatings used in the construction industry to protect buildings from moisture, UV radiation, and microbes. It helps minimize material use, minimize waste, optimize energy consumption, and improve the product performance. The vast acceptance of nanocoatings is driving vendors to introduce other products that are solvent-based or water-based and addresses environmental concerns.

Request Free Proposal

Understanding the supplier landscape

Gaining insights on service providers, cost-saving opportunities, category requirements, and procurement pain points will help companies understand the complex supplier landscape in the paints and coatings market. Category market intelligence study provides an overview of the supply market and competitive analysis, helping companies to design procurement models as per the current trends. A holistic overview of the industry will allow enterprises to formulate better pricing policies and structure delivery models.

Expanding businesses to niche markets

Many organizations are focusing on expanding their business to emerging APAC markets such as India and China. Industrial development, availability of cheap labor, and low production costs is attributing to the growth of this market in the APAC region. Additionally, urbanization is fueling the development of residential and non-residential projects and boosting the demand for paints, coatings, and specialty materials in the market.

What solutions SpendEdge offer to businesses

The team of procurement experts at SpendEdge provide a category market intelligence study that meets requirements specific to the needs of the business and offer market opportunity assessment for suppliers in the paints, coatings, and specialty materials industry over the next few years. Some of the solutions offered are listed below:

  • Understand the client’s business requirements and offer solutions that meet the business objectives and develop robust strategies
  • Provide a holistic overview of the category landscape; category spend analysis; cost components; demand-supply shifts; pricing and procurement best practices specific to the category under focus
  • Identify the key suppliers and provide comprehensive competitive analysis
  • Provide insights on the preferred procurement models

Read our complete case study titled – Supply Market Assessment of the Global Steel Drums Market for a Leading Paint Manufacturer

Spendedge aftermarket

Other case studies you might be interested in:

For any queries, reach us at – hello@spendedge.com

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.

 

Want to know more?

Request Demo 

IR15

Leading Financial Services Company Improves Procurement Strategies for Integrated Facilities Management Category

Business Challenge: Need for improved understanding of supply market and procurement practices for integrated facilities management category

A leading player in the financial services sector wanted to gain detailed understanding of the supply market landscape and procurement best practices specific integrated facilities management category.

Situation: The client wanted to gain thorough understanding of the supply market and assess all critical procurement strategies

The client wanted to gain an understanding of the strategies adopted by top financial services buyers engaging with integrated facility management service providers. They were also keen on understanding the best cost-saving opportunities, market trends, demand and supply that could optimize buying and negotiating in the category.

Approach: Conducted detailed market assessment and explored various benchmarks for overall process improvement

We conducted an analysis of the market size, growth, trends drivers and challenges and their impact on the supply chain, explored the service offerings of the suppliers and their capability to cater to the needs of financial services clients. We also did an analysis of the experience of suppliers with financial services companies, followed by analysis of typical buying requirements for procurement managers in charge of the category. We consolidated all learning from these assessments and also provided recommendations on best practices and potential suppliers they could engage.

Impact: Client leveraged the understanding of supply market and implemented strategies for improved performance

The client was able to gain a detailed understanding of the supply market and implement procurement best practices to improve the sourcing and procurement processes at an overall level. They were also able to implement best contracting practices and engage with the best of the suppliers.

supply management

Leading Packaged Food Manufacturer Identifies Suppliers of Packaging Materials from Africa

Business Challenge: Issues with identifying best suppliers from Africa

A leading packaged foods manufacturer with operations across North America wanted to explore the possibilities of sourcing packaging raw materials from Africa. They were facing challenges with the identification of potential suppliers, and evaluating their capabilities.

Situation: The client lacked an understanding of the African supply market

The client was interested in exploring the possibilities of procuring packaging raw materials from Africa, as they learned about the cost saving opportunities. However, they were facing challenges due to the lack of understanding of the local supply market.

Approach: Applied a systematic approach for identification and shortlisting of potential suppliers

We took a systematic approach to identify, assess and recommend on the best possible suppliers based out of Africa. We initially developed a long list of suppliers, followed by shortlisting of potential suppliers based on operational and functional capabilities. We also identified potential risks with sourcing from the shortlisted suppliers and developed recommendations on mitigation strategies.

Impact: Client gained detailed understanding of the supply landscape in Africa and was able to identify potential suppliers

The client explored the possibilities of procuring packaging raw materials from Africa and the potential benefits. They were also able to develop an understanding of the potential risks associated with sourcing from the identified suppliers and mitigation strategies to reduce potential disruptions.

cyber security

Leading Chemicals Manufacturer Identifies Best Suppliers of Raw Materials through Supplier Capabilities Benchmarking

Business Challenge: Issues with finding rights suppliers for prime raw material categories

A leading chemicals manufacturer was facing issues with identification and qualification of right suppliers for its prime raw material categories. They were not following a systematic approach for supplier identification, evaluation and shortlisting.

Situation: The client wanted to implement an early warning system that could help them foresee potential supplier specific risks

They faced challenges with ranking of the identified suppliers based on capabilities and selecting the best among the suppliers that qualified their product and quality criteria. The category managers were clear with the qualities that they were looking in a supplier, but were not sure of the industry best practices followed in supplier selection.

Approach: Deployed a systematic approach for identification and selection of the best possible suppliers

We took a systematic approach that involved finalization of qualification criteria, development of a long list of potential suppliers, and shortlisting of the identified suppliers based on capabilities. We consulted with the client’s category managers to understand the ideal qualities that they were looking for in a supplier and did a sort assessment of the key parameters considered by best-in-class peer group companies. Based on these criteria, we shortlisted the best suppliers from a long list of qualified suppliers. Further, we conducted a deep-dive assessment of the shortlisted suppliers to develop recommendations for the client on the suppliers.

Impact: Client was able to gain deep understanding of the supplier landscape and best practices followed in supplier selection

The client gained detailed insights on the supplier landscape and the key parameters to consider for selection of the best suppliers. They also gained detailed understanding of the best practices followed by the peer-group companies. Based on our recommendations, they were able to partner with the right suppliers in a long-term perspective.

photography work space on top view

Tail-Spend Optimization helps Leading Pharma Company Achieve over USD 10 Million in Savings

Business Challenge: The client was facing challenges with tracking and managing spend across regions with different suppliers

The client, a leading pharma company had USD 80 million MRO category-spend spread over 800 suppliers across four different locations. This led to challenges such as data inconsistency, poor category structure, fragment process etc. They were aware of the fact that there could be significant cost savings by streamlining the whole process and were looking for external support for the same.

Situation: The client wanted to explore the possibilities for streamlining the process and achieve improved cost savings

The client was looking to implement an exhaustive spend assessment of their MRO category in order to rationalize supplier base, deliver savings and streamline sourcing processes.

Approach: Developed recommendations on the key selection parameters, developed a supplier scorecard with details of key suppliers

On the basis of our rigorous research and analytics we recommended an implementation of an innovative 80/20 approach which targeted (for supply consolidation) only such sub-categories which constitute less than 20% of total MRO spend. We also developed recommendations for formulation of short and medium term spend strategy, demand aggregation/consolidation, supplier base optimization etc. Our recommendations enabled the client in identifying major saving opportunities by leveraging tail-spend analytics and spend management services.

Impact: Client leveraged the understanding of supplier landscape and key selection parameters, to qualify the best suppliers for the RFP stage

Based on implementation of our recommendations, the client was able to achieve more than USD 10 million in savings across categories.  They were able to achieve up to ~26% savings specific to certain categories and an overall 57% reduction in supplier base resulting in significant savings. They were also able to achieve significant process improvement.

Request free proposal