5 Procurement Strategies for Better Supply Management
The Business Challenge
A process manufacturer of industrial materials based in North America had a business objective to maximize shareholder value of the company. Their prime focus was to improve profitability and asset utilization, with a productive P&L and balance sheet. The company’s products were on the edge of being commodities without offering much product differentiation from competitors. The primary means of gaining and holding market share was quality and this required them to enhance supply management.
Additionally, the company was vertically integrated and had limited sources of raw material in most of the major product lines. This meant that the company often had to enter into long-term contracts with vendors to ensure supply and operate facilities to capture byproducts from other industries’ processes to obtain material. The quest for increased profitability compelled the company to engage with SpendEdge and determine cost reduction opportunities in every part of the company while improving the supply management process.
Improving profitability and asset utilization can be a herculean task for companies. Request a free proposal and access our complete portfolio of supply management solutions.