Tag: Supply Management

vendor risk management

Procurement Intelligence Solutions for a Retail Company – A SpendEdge Success Story

Procurement Intelligence Solution Transforms Finance Operations and Enhances Supply Management

About the Client 

The client is an American multinational retail-clothing firm. With over 700 stores, the company employs around 57,000 people globally.

The Business Challenge 

With changing consumer behavior and technological innovations, retailers across the globe are uncovering new ways to sustain from the disruption. Moreover, retail brands are coping with a long-term uptrend in commodity and other raw materials input prices, and rapidly shifting global supply chain. These mounting global supply chain complexity with retail markets is forcing retail companies to be more agile and react faster than other players in the market. This is where procurement intelligence comes into play. In today’s competitive market scenario, procurement intelligence is the key to establishing long-term strategic sourcing and supply management plans.

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vendor risk management

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

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

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

The Business Challenge 

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

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

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Supplier Profiling: Boosting Supply Management and Identifying Key Competitors for a Fleet Management Firm

Overview of the Fleet Management Industry

Fleet management enables enterprises to track and maintain their vehicles in a quick, cost-effective, and accessible way. It typically involves functions such as vehicle tracking and diagnostics, and financing, driver management.  

The primary growth driver of the global fleet management industry is the increase in demand for transport and logistics. Fleet management firms offer several benefits such as enhancement in vehicle performance, maintenance planning, and scheduling of fleet routing, which enhances the fleet safety and also customer satisfaction. The other major factor driving fleet management industry is request free proposalthe need for organizations to streamline their operations for greater connectivity and reduce the hardware cost needed to perform the necessary fleet management. Furthermore, recent innovations like smart transportation solutions and connected vehicles will drive the market for fleet management solutions.

However, certain factors are restricting the growth of the fleet management firms. Some of the factors include:

  • Cost-reduction initiatives: The pressure to reduce costs typically comes from the top of the business hierarchy and is applicable to every department in the organization. When this responsibility falls on the shoulders of the fleet manager, the individual is faced with numerous variables in budgeting and forecasting.
  • Fuel price volatility: One of the major factors in the effectiveness of any cost-reduction strategy for fleet management firms is the volatility of fuel prices. Fuel prices are difficult to estimate, and as a result, difficult to budget. Therefore, creating a compelling cost-management strategy, then successfully executing it as planned, has become incredibly difficult for fleet management firms.

Many such factors are compelling firms in the fleet management space to leverage the use of supply management and supplier profiling solutions. Supply management and supplier profiling solutions help firms profile the most appropriate suppliers and reduce risks associated with production delays and ensure consistency in their service offerings.

The Business Challenge and Journey

Client background: A leading fleet management firm with business units spread across the globe wanted to better understand the latest industry trends and identify the key suppliers.

Client issue: The client wanted to keep track of the supply management performance and identify the strengths and weaknesses of their suppliers. Additionally, the client wanted to profile the most appropriate suppliers to reduce the time-to-market for their service offerings.

SpendEdge’s supplier profiling experts followed a scrupulous research methodology and carried out discussions with prominent stakeholders in the fleet management industry to help the client boost supply management and identify key competitors. The experts also compiled information from a wide array of proprietary sources such as paid industry databases, company presentations, and industry forums.

Client journey: During the course of this supply management and supplier profiling engagement, the fleet management client profiled the most appropriate suppliers to reduce procurement costs and excess inventory costs. The client was able to maintain a customer-focused business to deliver the desired service quality to the customers.

Key questions answered in this supplier profiling engagement

The Results

With the help of SpendEdge’s supply management and supplier profiling solution, the fleet management firm was able to proficiently manage their supplier database and segment suppliers based on their criticality. This helped them minimize maverick spend.

To know more about our supplier profiling solutions and how we help fleet management firms

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pet supplies

SpendEdge’s Supplier Profiling Study Helps a Leading Pet Supplies Client to Identify High-Risk Suppliers

Category Overview

The pet supplies industry has purred along over the past few years due to the rising popularity of dogs, cats, fish, and birds as home companions. Moreover, growing popularity of pet ownership has facilitated demand for higher number of pet supplies. Also, fuelled by economic recovery, the pet supplies industry has expanded widely, despite increased competition from mass merchandisers, supermarkets, and online retailers that offer consumers greater convenience, variety, and competitive prices.

However, according to the supply management specialists, drastic changes in the retail environment over the past decade with e-commerce becoming an option poses a significant challenge for pet owners. Also, to balance brick-and-mortar risks with e-commerce risks and ensure consistency across channels, pet supplies manufacturers have started leveraging supplier profiling studies to identify high-risk suppliers. Moreover, the supply management solutions offered by SpendEdge also help pet supplies firms to develop a superior supplier operational and functional capability matrix.

The Procurement Pain Point and Insights Offered

A leading pet supplies manufacturer with offices spread across the globe wanted to identify a list of high-risk suppliers. Additionally, they wanted to gain deeper insights into the supplier’s capability matrix. They also wanted to gain insights on the competitors’ products and service portfolio across various geographical locations. Furthermore, the pet supplies industry client also wanted to identify the profiles of key industry players by covering aspects such as financial structure, business profile, and their revenue.request free proposal

To address the issues and meet the specific requirements of the client, the supply management specialists at SpendEdge carried out a comprehensive approach comprising of primary and secondary research. Also, our supply management specialists created a dashboard by compiling information from various proprietary sources such as company newsletters, journals, and media platforms.

With the help of this supply management study, the pet supplies industry client was also able to identify a list of high-risk suppliers and gain deeper insights into their capability matrix. Additionally, the client gained insights on the competitors’ product and service portfolio across various geographical locations. The engagement also helped the client gain insights on competitors’ financial structure, business profile, and their revenue.

Key questions answered in this supply management study include

pet suppliesBusiness Outcome

The supply management study helped the pet supplies client identify a list of high-risk suppliers and gain deeper insights into their capability matrix. Additionally, the client was offered suggestions on pricing models to enhance engagements and drive ROI.

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Spend analysis best practices

Top Three Spend Analysis Best Practices

Organizations must adopt spend analysis best practices as it is key to achieving procurement and sourcing success. Majority of the companies make their decisions based on inaccurate, poor, and incomplete data obtained through unreliable sources. As a result, businesses were unaware of how much they spend on which products, thereby relying on guesswork and intuition. Today, organizations have realized the importance of spend analysis to increase the efficiency of their procuremenSE_Analystt function. Chief procurement officers (CPOs) and other procurement professionals must leverage these spend analysis best practices to ensure an efficient and effective spend management program. By adopting spend analysis best practices prevalent in their respective industry, businesses can gain insights that help organize, plan, and manage procurement and sourcing decisions in the organization’s supply chain. Spend management is gaining momentum in enterprises to drive continuous improvement in supply management, thereby enabling strategic decision making.

#1 Spend Analysis Best Practices –  Audit Spend Management Capabilities

One of the most important spend analysis best practices that organizations must adopt is to conduct an audit of the businesses spend management capabilities and infrastructure. Businesses can begin with understanding and creating a spend data system map, check the completeness, accuracy, and depth of the available data, conduct a company-wide spend analysis, and gain a clear picture of existing data management processes. Organizations must also assess their internal capabilities and skills, enlist the areas that need to be augmented, and finally ensure that data is accessible to everyone involved in the decision making process.

#2 Spend Analysis Best Practices –  Detailed Spend Classification

Organizations must ensure data cleansing and classification with the help of spend analysis software or tools. These spend data management solutions facilitate extraction, classification, and analysis of spend data, thereby automating and streamlining current processes. Furthermore, businesses must ensure a detailed classification of the spend data, thereby enabling visibility and comparison across supplier and commodity attributes. A detailed spend classification provides the organization with deep visibility of the total spend, thus facilitating strategic sourcing decisions based on accurate and actionable insights.

#3 Spend Analysis Best Practices – Leverage Supply Intelligence

One of the spend analysis best practices for organizations is to leverage business and supply intelligence to obtain a clear picture of the company’s total spend and compliance standards. Enterprises can also enhance and enrich their spend data with the insights gained through supply intelligence, thus leveraging the insights to make trade decisions. The external market and supply intelligence offer necessary actionable insights that help businesses to optimize sourcing decisions and inventory strategies.

To know more about spend analysis best practices and supply intelligence

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View the latest case study from SpendEdge to know how a better and a smarter spend analysis solution can benefit your organization to reduce costs and improve process efficiency. 

 

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