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Supply Chain Risk Analysis to Gauge Supply Chain Performance – A SpendEdge Case Study for a Specialty Chemicals Company

Engagement Overview:

The client wanted to gauge the performance of their supply chain. To proactively address the growing complexities of their global supply chain, a specialty chemicals company approached SpendEdge to devise a comprehensive approach to supply chain analysis. A detailed quantitative analysis of supply chain was carried out to accurately forecast inventory and production needs of the specialty chemicals client.

Supply chain analysis enabled the client to integrate risk prioritization as a core strategy in their current risk management system. Following this, the specialty chemicals company redesigned their risk management system to uncover risk request proposal factors and include proactive risk mitigation strategies.

About the Client:

A multinational chemical industry client specializing in the manufacturing of specialty chemicals. The client is a leading player in the chemical industry with several well-established subsidiaries operating in over 35 developed economies.

Business Challenge:

The specialty chemicals company was facing difficulties in gauging the performance of their supply chain.

How did SpendEdge Help the Client:

  • Step 1: Developed a three-step methodology that offered a clear roadmap of the specialty chemicals space

Our supply chain analysis experts followed a structured approach to develop a supply chain management framework.

  • Step 2: Mapped the supply chain activities

This step involved the identification of activities, establishments, resources, and regulatory requirements that are required to create a flowchart to obtain an overview of the supply chain activities. It also offered details on the flow of raw materials and products throughout the supply network.

  • Step 3: Developed a framework to gauge the impact each factor involved in the supply chain

The final step involved the quantification of the supply chain activities and their contribution to the flow of materials both in monetary and physical terms. This helped the client to assess the importance of each factor impacting the overall performance of the supply chain.

Key questions answered in this supply chain analysis study include:

supply chain analysis

Benefits of the Engagement:

Our supply chain analysis solution helped the specialty chemicals company to analyze every stage of their supply chain activity, starting from the acquisition of raw materials or supplies from the suppliers to the delivery of finished products to the end-user segments. The primary objective of the supply chain analysis engagement was to determine the impact of factors affecting the supply chain and to deliver the finished products more quickly and efficiently to the end-users. Also, the supply chain analysis offered greater visibility into supply chain processes by establishing a cohesive relationship between all tiers of the supply chain.

Why incorporate supply chain analysis?

Supply chain analysis helps in the identification of supply chain activities or processes that can be bypassed to reduce inventory costs and improve forecasts. It also helps organizations to optimize their supply chain processes and minimize redundancy while assisting in the creation of enhanced value-added services.

Our Findings:

Supply chain analysis encompasses a wide range of functions that may seem daunting even to a well-established specialty chemicals firm. However, it can be effectively modeled by dividing them into several strategic areas. A supply chain analysis study that aims to determine current real-world practices in supply chain risks implies a radical takeoff from conventional models. 

It expects organizations to redefine their supply chain management strategies and adopt a continuous approach to detect supply-side risks, classify risks, and prioritize them to drive business value. Moreover, supply chain analysis is a process, which not only emphasizes on the shortcomings in various segments of the supply network but also between the supply chain and the end-users.

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What does the Future of Digital Supply Chain Look Like?

Digitalization has been the talk of the town in any business function ranging from marketing, finance, operations to procurement and supply chain. Industry 4.0 has been the most significant driver for digitalization in organizations that augment the management’s capabilities to improve efficiency and productivity. Industry 4.0 incorporates various game-changing technologies ranging from Internet of Things (IoT), cloud-based systems, and data analytics. The advent of such technologies has changed the way how supply chain and logistics department functions. It has also contributed to saving time for operations professionals by automating mundane tasks. The future looks bright for supply chain digitalization with ideas from the automated warehouse and robotics to drone delivery looming around. So how is technology unfolding in the area of digital supply chain and what trends are set to gain traction in theSE_Demo2 coming years?

Network-focused visibility

Traditionally, procurement and supply chain information existed in silos and managers from one department had less transparency of other departments. The digital supply chain will be marked by the ability to understand activities and events of multiple players. Digital supply chains will augment to such a level that transparency will increase not only for internal stakeholders but also for external supply chain partners. One day, the technology will advance to enable global trading network or global commerce hubs.

Advanced analytics

A typical supply chain generates a huge amount of data, and with so much data available, advanced analytics seems to be the perfect candidate for in-depth analysis. The advancement in data storage and processing technologies has enabled companies to crunch mountains of data within minutes and not months. The power of such advanced analytics can be utilized in areas such as making buying decisions, inventory planning, supplier network optimization, and supplier collaboration. It will significantly help companies in improving productivity and reducing the cost.

AI and robotic automation

The world of the supply chain may see personal assistant such as Alexa and Siri on the consumer-facing side. Such an AI personal assistant will be able to give instant information into the company’s supply chain and help managers track the progress of their operations. Additionally, AI and automation systems can enhance workforce productivity by performing repetitive tasks such as supplier on-boarding, assisting with invoice compliance, and processing help-desk orders. Such automated digital supply chain will shorten lead times, eliminate errors, and improves stakeholder experiences.

Cloud TMS

Transportation management system (TMS) is one of the crucial parts of any logistics network. Cloud TMS can provide remote monitoring to logistics professionals and the ability to track progress along the supply chain. Cloud TMS also eliminates the troubles of on-premise deployment and breaks silos to create an interconnected network of 3PL providers, carriers, and matching providers. Cloud TMS has the ability to develop into a central marketplace which offers a connection to all stakeholders in a supply chain.

Mobile robotics

Apart from technologies like IoT and data analytics, which evolves from the software part, technologies like mobile robotics can also significantly improve workforce productivity. It will allow warehouses to reduce labor requirements and help DCs keep pace with the current e-commerce growth. The use of mobile robotics may not be limited to material handling but also in automated guided vehicles (AGVs). Mobile robotics/smart AGVs that can carry or pull materials to workstations, or function as smart, driverless lift trucks which would alleviate the manpower needs at the DC level, and allow for DC automation which is quicker to install and reconfigure.

For more trends in the digital supply chain, IoT systems, and big data analytics:

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Top Trends in the Electric Motors Market

Electric motors power nearly every electrical devices in the world, and it would be an incredibly difficult task to get through our day without using one. Electric motors are mechanical devices that convert electrical energy into mechanical energy through the process of electromagnetism in the stator and rotor windings. Recent advancements in technology have even made it possible for motors to be as small as a nanometer consisting of a single molecule. The electric motor finds applications across multiple industries including automobile, energy, manufacturing, HVAC, consumer appliance, and industrial automation. Amongst these, the automotive industry is expected to drastically drive the demand in the global electric motor market due to the increased production of electric vehicles. (SpendEdge – Procurement Market Intelligence Report)

Request Free SampleTrends in the Electric Motor Market

Energy efficient electric motor

The demand for energy-efficient motors from end-user industries such as power and energy, automobile, and others has been strong. However, they are demanding energy-efficient electric motors to reduce their energy costs. Additionally, such engines also reduce the carbon emission, which helps companies to meet their sustainability goals. Also, some governments have imposed strict regulations that will increase the demand for energy-efficient electric motors in the future.

Rise in prices

The increase in global steel prices is expected to increase the price of electric motors by 15%-20% by 2022. Such changes will affect the prices of motors related to efficiency standards such as IE2 and IE3. Though the price of energy-efficient electric motors might increase, buyers can reduce their energy costs.

Customized electric motor

The supply market of electric motors is highly fragmented due to the presence of several regional and global suppliers, which intensifies competition. To increase competitiveness, suppliers are customizing their electric motors to differentiate their products and provide products according to the needs of buyers. Consequently, buyers require customized products to avoid compatibility issues such as load efficiency.

Increased production of high power-to-weight ratio motors

Industrial buyers form the automobile, electronic device, and aircraft sector are focused on reducing the overall weight of their product without compromising on functionality and power. As a result, they demand motors with high power-to-weight ratio. For instance, in aircraft manufacturing, the use of electrical drives in aircraft up to 2.20 ton had a limitation in take-off weight because of the high weight of the electric motor. This issue can be addressed by the use of a high power-to-weight ratio electric motors

Read more about the emerging trends in the electric motors market along with supply market insights, procurement challenges, sourcing insights, and key suppliers in SpendEdge’s upcoming report on the global electric motors market.

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Supplier Chain Risk Management Helps a Prominent Ecommerce Logistics Provider Improve the Business Efficiency by 13%

Overview of the Logistics Industry

Over the last couple of years, logistics has become an integral component of ecommerce businesses as it plays a pivotal role in planning, controlling, and maintaining the flow of products from the source to the final destination. The growing popularity of cross-border ecommerce logistics and the relentless growth of the ecommerce industry will contribute to the growth of the logistics sector. Moreover, with the rise in trading activities, businesses are finding new ways to optimize their logistics process and gain better visibility into the supply chain activities.

Some of the factors that may curtail the growth of ecommerce logistics space include:

  • Maintaining transparency: With the growing demand for authenticity and reliability in the product offerings, leading organizations are facing challenges when it comes to maintaining transparency in the supply chain activities. Moreover, organizations should also ensure better visibility to keep track of the movement of goods from the source to the destination. The alternating preferences of the consumers towards convenience and agility are compelling businesses to maintain transparency in their product offerings.
  • Increasing efficiency: The presence of numerous competitors has brought in a considerable number of choices for the consumers. Therefore, to retain customer loyalty, it becomes essential for businesses in the ecommerce logistics space to curtail the time taken to deliver the products while maintaining the quality of the products offered.

To counter these challenges and identify the potential risks in the supply chain, organizations are opting for a supply chain risk management solution. Supply chain risk management helps businesses to identify, monitor, detect, and mitigate threats to maintain supply chain continuity and profitability.request free proposal

The Business Challenge and Our Journey

The client, a renowned ecommerce logistics provider, wanted to identify disruptions in the supply chain activities in terms of cost volatility, material shortages, supplier financial issues, and failures. With the help of industry best practices, the client wanted to collect, analyze, and manage supplier information efficiently. The primary objective of the client was to gain relative insights into the potential financial issues and automate the detection process to prevent any supply chain disruptions.

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

The supply chain risk management solution offered by SpendEdge assisted the ecommerce logistics client to understand the typical risks associated with the suppliers and its impact on the business performance. Moreover, the client was able to identify the mitigation strategies to curtail such risks. The supply chain risk assessment solution also helped the ecommerce logistics client to gain an accurate understanding of the current supply chain and accordingly restructure their financial resources to improve their business efficiency.

Fundamental questions answered in this supply chain risk management solution include:

Sp- supplier chain risk management

The Results

SpendEdge engagement offered deep-dive insights into the compliance and regulatory issues in the ecommerce logistics space. The client was able to profile the macro and micro-economic risks and further reduce the potential risks associated with the supply chain.

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Spendedge’s Supply Chain Risk Analysis Helps an Automotive Manufacturing Client Increase the Time-to-market for the Products Offered

Overview of the Automotive Industry

In the Europe alone, the automotive industry accounts for nearly 12 million jobs.

Amid the recovery from the economic crisis, the automotive industry is witnessing a constant change owing to the demanding environmental requirements and the rise of new players. Moreover, the industry at large is emphasizing on harnessing their limited capital resources to enhance their production capabilities. With the growing innovations, prominent organizations are increasingly leveraging technology to better match the demands of the consumers.

Although the automotive manufacturing space is witnessing a promising growth owing to a considerable number of players, some factors may influence the growth of the industry. These include:

  • Complexity and cost pressure: The rising complexity in terms of regulations to improve the safety standards is compelling organizations to improve their production efficiency while compromising on the costs. Moreover, organizations are facing the need to develop alternative power-train technologies to differentiate themselves from other competitors.
  • Shifting industry landscape: With the presence of a considerable number of OEM players, organizations need to ensure affordability and efficiency in the product offerings. Organizations should also streamline their marketing demands to meet the changing customer preferences. Moreover, the fluctuation marketing conditions are also compelling businesses to ensure consistency in the product offerings while meeting the quality requirements.

To address the challenges and curtail the risks associated with the supply chain process, prominent automotive manufacturing companies are utilizing supply chain risk analysis solutions.request free proposal

The Business Challenge

Like all other companies in the manufacturing space, the client, a renowned automotive manufacturer wanted to potentially identify the prevailing threats across the supplier network and develop robust mitigation strategies. The client also wanted to gain better visibility into their supply chain operations and devise ways to efficiently manage the supply chain risks. Through a reliable supply chain risk analysis solution, the client in the automotive manufacturing space wanted to save logistical costs and increase the product quality.

To understand the market conditions, supply chain risk analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the automotive manufacturing space. Moreover, the experts also compiled information across a wide array of primary and secondary sources such as paid industry databases, company presentations, and industry forums in the automotive manufacturing space.

The supply chain analysis risk analysis offered by SpendEdge helped the automotive manufacturing client devise effective risk mitigation strategies by utilizing resources such as the people, process, and technology. The client was able to understand the current state of the supply chain and accurately forecast the disruptions to improve the business performance.

Fundamental questions answered in this supply chain risk analysis include:

Sp- supply chain risk analysis

The Results

During the course of the supply chain risk analysis engagement, the client in the automotive manufacturing space was able to assess the impact of these risks on the business performance. The client was able to identify the most critical suppliers for the business and prevent and mitigate the impact of supply chain breakdowns.

To know more about our supply chain risk analysis in the automotive manufacturing space?

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Top 4 Benefits of 3D Printing in Supply Chain Management

The 3D printing technology has been much hyped lately. The immense benefits of 3D printing technology can help the supply chain of the company in multiple ways. The most innovative companies have looked upon the benefits of 3D printing technology to overcome logistical challenges and optimize their supply chain. The increasing levels of customer demand have placed immense pressure on the supply chain to deliver perfection both in terms of time and quality. For instance, a few years ago consumers were okay with waiting for a week to receive their products, but now with the advent of one-day or same day delivery, fulfilling customer demand has become challenging. So what are the benefits of 3D printing technology that can help companies to meet this ever-increasing customer demand and save costs?

Benefits of 3D Printing in Supply Chain Management

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Provides Mobility

Mobility is one of the most useful benefits of 3D printing technology. Instead of going through the laborious process of land acquisition for infrastructure, buying machinery, and managing assets, all that’s required for 3D printing is a 3D printer and some input materials like plastic, powder, and resins. One of the remarkable benefits of 3D printing is that it gives customers the power to customize their goods even with instant deliveries. E-commerce retailers like Amazon could vastly benefit with such technology that puts power in the hands of the people.

SE Demo

Virtual Inventory

At present, companies have to maintain an inventory of goods in terms of finished goods, in different SKU’s in various shapes and sizes. This can take up a lot of space adding to the inventory and warehousing cost. However, with 3D printers, all the raw materials are in the form of plastics and resins. So instead of keeping stock of different kind of goods, a 3D printer can instantaneously print required goods on demand. So, virtual inventory is one of the exceptional benefits of 3D printing that makes supply chain management even more efficient.

Manufacturing Aids

The manufacturing industry is intensely competitive with almost all companies following management principles like Just-in-Time (JIT). Additive manufacturing allows companies to develop spare parts, tools, and other fixtures to speed up assembly lines by developing durable and accurate parts. This is one of the extraordinary benefits of 3D printing that helps in maintaining optimum efficiency in manufacturing. For specific products, it can also hasten up the time-to-market thereby contributing to inventory turnover.request proposal

Reducing Transportation and Logistics Cost

Reduction in transportation and logistics cost is one of the most productive benefits of 3D printing. This technology allows the manufacturing processes to be decentralized. The traditional practice of having one manufacturing hub distributing the products all across the world adds to the product cost with increased logistics and transportation cost. Since 3D printers are very good at producing products even with moving parts, the assembly phase can be eliminated to save on labor and transportation cost. 

Want to know more about how the benefits of 3D printing can make your supply chain management more efficient?

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Rethink Your Supply Chain with Crowdsourcing

The term crowdsourcing is an extended version of the proverb “the more, the merrier.” The idea of soliciting ideas, services, or information from a large pool of people has been there for quite some time. Traditional companies function within their closed boundaries with few people in the chair making a decision based on what they think would be good for the company. However, the more customer-centric companies involve multiple people in the ideation process, collecting feedback from a large group of people toSE_Demo2 deliver a truly great product. The advent of the internet era has made the crowdsourcing process even more easier. Procurement and supply chain professionals are now turning their focus towards crowdsourcing to bring such valuable inputs for their supply chain.

Why are supply chain professionals emphasizing on Crowdsourcing?

On-time, Cost-Effective Delivery

If there is ever a company that provides on-time, cost-effective delivery delighting the customer, Amazon would be the top name in people’s mind. Their delivery services are so impressive that even after choosing standard 4-5 business days delivery, they show up on your doorstep the next day, or sometimes even the same day. They are able to do this because of the vast distribution network and independent delivery fleet. Part of this success can be credited to their effort to crowdsource their delivery to service providers such as Cargomatic, who connects local shippers with carrier companies having extra space in their trucks. Delivery companies are also trying to solve the last-mile connectivity problems by crowdsourcing traffic apps, which help drivers find the most efficient routes with data from other real-time drivers.

Supports Risk Management

Most companies put in proactive risk management strategies to limit the damage and be adaptive in case of unavoidable circumstances like a natural disaster or geopolitical turmoil. In order to be prepared for situations like this and avoid manufacturing and transportation breakdown, companies are resorting to crowdsourcing. For instance, a project called zeean, enlists public feedback to collect data on economic responses to extreme weather. The company uses such data to improve supply chain responsiveness and resiliency. Additionally, crowdsourcing technology can enable companies to communicate and collaborate with their suppliers in real-time in order to mitigate supply chain risks.

Product Innovation

The advent of social media platforms has allowed brands to communicate and engage with their customers and gain valuable inputs on product development. For instance, Lego has a dedicated site for their fans and customers who can contribute design ideas for the new product. Additionally, users can vote for their favorite idea and state how much they are willing to pay for it. In case the idea gets support from more than 10,000 people, the official Lego board will decide for its production. Companies not only crowdsource ideas for the product but also for marketing and communication as Oreo did by devising the brand positioning for new Mini-Oreo cookies. The company received more than 500 ideas from over 42 countries and was able to identify ten potential ideas for their brand positioning.

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Supply Chain Analysis Helps an Oil and Gas Industry Client Streamline the Procure to Pay Process

Category Overview

The recent drop in the pricing of oil is pushing firms to compromise on operational costs to sustain their foothold in the oil and gas market landscape. Additionally, with the recent fluctuations in crude oil prices, firms operating in the oil and gas industry space have been compelled to reduce investments and start relying on supply chain analysis studies to cover fixed costs. Moreover, the ever-increasing competition in the oil and gas industry space is forcing players to improve their existing business models, improve automation, and maximize cost savings across their sourcing and procurement processes. request free proposalSupply chain analysis assists firms operating in the oil and gas space to devise best-in-class and cost-effective product and service offerings to the customers and help them boost their overall profitability and capability over their competitors.

With over 13 years of experience in offering a wide array of supply chain solutions, SpendEdge helps establishments in the oil and gas industry space to establish an end-to-end follow-up procedure to resolve the discrepancy, define freight discrepancy codes, and maintain freight discrepancy logs across business units.

The Procurement Pain Point and Insights Offered

A leading oil and gas industry client with offices spread across various geographical locations was facing predicaments in clearing a massive backlog of unplaced requisitions, historical data issues, and unplanned cycled requisitions. Additionally, with their current processes in place, the client experienced an increase in purchase order (PO) delinquency which resulted in increased costs, work delays, and long cycle timeframes. They also suffered from late payments, old invoices, and a complicated invoice discrepancy resolution process.

To help the oil and gas industry client overcome their predicaments, SpendEdge tailored an extensive market research approach that included primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this supply chain analysis engagement, the oil and gas industry client was able to redesign their procure to pay process by aligning experienced resources to shorten the requisition to PO cycle time and clear the backlog in PO creation. Additionally, the client defined invoice processing steps per industry practice and initiated a daily goods receipt report to identify discrepant invoices.

Fundamental questions answered in this supply chain analysis engagement include

Business Outcome

The supply chain analysis engagement helped the oil and gas industry client reduce delinquency in supplier orders. This helped them save of over $77K in a span of six months. Additionally, the client cleared over $42M/year worth of discrepancies.

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Supply Chain Analysis Helps an Alcoholic Beverages Manufacturing Client Drive an End-To-End Supply Chain Transformation

Category Overview

The ever-increasing competition in markets across the globe is forcing leading firms to improve their existing business models and projections. In the alcoholic beverages space, renowned firms are advocating the need for supply chain analysis to gain a stronger position in the industry space. request free proposalSupply chain analysis solutions not only help firms in the alcoholic beverages space to devise cost-effective and best-in-class products and service offerings but also allows firms to improve their overall profitability and competence over the peers.

SpendEdge, with years of experience in offering robust supply chain solutions, help firms operating in the alcoholic beverages space to optimize their inventory, long-term capacity planning, and efficiently manage the warehouse capacities.

The Procurement Pain Point and Insights Offered

A renowned alcoholic beverage manufacturing client was experiencing multiple predicaments in meeting customer demand and service level expectations. Additionally, the client was facing key challenges including high supplier uncertainty, nascent supply chain organization structure and processes, and a high product portfolio complexity.

To cater to the business requirements of the alcoholic beverages manufacturing client and help them achieve an end-to-end supply chain transformation, SpendEdge’s supply chain management experts tailored an in-depth research approach which included primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this supply chain analysis engagement, the alcoholic beverages manufacturing client was able to identify the focus work streams to address the fundamental challenges. Additionally, the client tailored the supply chain and devised an optimal replenishment model, route to market strategy, logistics mode and inventory norm for each segment. Furthermore, the client developed the key performance indicators and governance mechanisms to facilitate visibility into the end to end value chain operations across business units.

Fundamental questions answered in this supply chain analysis engagement include

Business Outcome

This supply chain analysis engagement helped the alcoholic beverages manufacturing client achieve best in class customer service levels in the markets addressed. Additionally, the sales achievement improved up to 100% on account of increased availability and scientific inventory norms.

To know more about our supply chain analysis solutions for alcoholic beverages?

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