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Supply Market Intelligence Helped a Processed Foods Manufacturer to Address Commodity-price Volatility and Save $15 Million

Processed Foods Industry Overview 

Over 50 percent of the American diet consists of highly processed food items. The industry loosely tracks underlying demographic trends such as income growth and population and generates revenue from the sale of food to a whole host of consumers. It has proved its ability by delivering positive investment returns consistently. In fact, over the past few years, the processed foods industry in the US has delivered high single-digit annual total returns with much less volatility than the broader market indexes.  

Business Challenges Faced

Rising competition from private label companies and value-conscious purchasing from consumers was creating downward pressure on prices of processed food items. The manufacturer was finding it hard to keep up with new trends, demand volatility, portfolio complexity, and development costs. Raw material prices which accounted for over 70% of direct material costs were becoming more volatile and impacting the major operations of the company. The client, therefore, decided to collaborate with SpendEdge to perform supply market intelligence study and gain real-time insights to address increasing volatility and improve the competitiveness of their organization. 

Want to know how our market intelligence solutions can help you gain real-time insights and make informed sourcing decisions? Request a free proposal and we will get back to you with customized supply market intelligence solutions.  

Our Research Approach 

To address this situation, the experts conducted a comprehensive supply market intelligence study, that provided insights into core elements of market trends, commodity pricing, global capacity, government and regulatory norms impacting the sourcing process. They also offered insights into economic trends that could impact the organization’s supply chain. 

With the help of supply market intelligence report and insights, the client determined the best framework for strategic, leverage, routine and bottleneck categories. Data coupled with market insights enabled the client to integrate cost modeling as a key capability within supply market intelligence. This provided input to budgeting activities and supplier switching decisions. SpendEdge’s recommendation to utilize supply market intelligence throughout the sourcing lifecycle also enabled the client to gain valuable insights at various stages of sourcing including strategy development, supplier identification, negotiation and contracting. This promoted a greater understanding of the supply market and helped them gain a competitive advantage.  

Wondering how leveraging supply market intelligence services can help you understand category markets and stay ahead of the curve?

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Engagement Outcome  

The supply market intelligence solution offered helped the client to reduce exposure to commodity-price volatility and save $15 million in a span of three months. It also enabled the client to look beyond their direct suppliers and build up their understanding of the role of different players across the whole value chain.

A comprehensive supply market intelligence study is crucial for companies to minimize exposure to commodity price volatility and reduce costs. Subscribe now to access accurate supply market insights from our procurement experts. 

Importance of Supply Market Intelligence 

  • Enables companies to understand the market in which the supplier operates. 
  • Reduces risk-intensive events involving suppliers and markets. 
  • Forecasts global price levels, market trends, supplier quality, and delivery.
  • Identifies key resources needed to vet for quality and accuracy.

To know how supply market intelligence can help your organization gain a competitive edge, request for more information from our analysts.

market intelligence

Analyzing Global Supply Markets with the Aid of Supply Market Intelligence Solution

SpendEdge, a leading provider of supply market intelligence solutions, has announced the completion of their latest presentation on analyzing global supply markets with the aid of supply market intelligence solution. The article offers detailed insights into the benefits of supply market intelligence solution reaped by our clients. The article also highlights how supply market intelligence services can help companies to closely monitor supply market conditions and improve supply chain strategies. 

Developing Effective Supply Chain Strategies to Strengthen their Presence in North America

Intensifying global competition presents a plethora of challenges for companies operating in the chemicals industry. A leading company in North America was finding it difficult to address high-cost pressure and identify opportunities for organic growth. They wanted to improve their supply market intelligence process to address market complexities.

The solution offered by our experts helped the client to perform supply market intelligence analysis and gain real-time information on suppliers’ activities while improving supply chain efficiency. Also, it helped them develop superior supply chain strategies, reassess their footprint in Asia, and strengthen their presence in North America.  Products without significant incremental sales were further identified to reduce non-profitable complexity and improve value-added processes.

Analyzing the Global Supply Market for a Pharmaceutical Drugs Company

Understanding supply market forces and implementing a comparative analysis of the pharmaceutical drugs market has always been an arduous task for companies. One of our clients, a market leader in the pharmaceutical drugs segment wanted to leverage our supply market intelligence services to develop an effective supply chain management system.

Our supply market intelligence experts developed a commodity profile to better understand the market landscape. They determined cost structures of suppliers and identified key market indicators to identify the supply market trends. The solution offered helped the client to obtain detailed insights regarding the global supply market and develop an effective supply chain management system.

Tackling Price Fluctuations and Realizing $30 Million in Savings

New technologies are expected to disrupt the automotive industry in the coming years. To address disruptions and identify potential opportunities, a leading company in the U.S automotive aftermarket industry collaborated with SpendEdge to leverage our expertise in offering supply market intelligence solutions. They wanted to develop an effective supply market intelligence strategy to minimize category spend and rebalance their global supply base.

During the course of this engagement, our experts extracted information from their internal databases and rationalized the supply base. They analyzed RFP responses from potential suppliers and conducted multiple rounds of negotiations to determine key suppliers. This helped the client to identify capable suppliers, address price fluctuations and supply market challenges, and realize $30 million in savings.

About SpendEdge

SpendEdge delivers robust, real-time supply market intelligence solutions to help sourcing and procurement professionals analyze supply markets. Our innovative supply market intelligence help enterprises to transform the structural capabilities of businesses and improve execution efficiency. Our state-of-the-art supply market intelligence solutions also help enterprises to transform structural capabilities, improve execution efficiency, and achieve better cost savings. We provide businesses with actionable insights and techniques to improve their supply market intelligence capabilities.

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contract management

Supply Market Intelligence: Improving Operating Processes for a Chemicals Company

The chemicals industry is expected to face new supply chain challenges and opportunities. It is therefore critical for companies to understand key developments in the chemicals market and know how supply market intelligence can help them seize this opportunity to gain long-term competitive advantage.

The Business Problem

The client is a leading player in the chemicals industry in North America. Owing to the ongoing high-cost pressure caused by intensifying global competition the client felt the need to prepare themselves for the requirements of future markets. Increasing complexities in the chemicals market due to global demand shifts, market consolidation, and uncertainties further necessitated the client to implement an effective supply market intelligence strategy to stay competitive. They wanted to conduct supply market analysis and identify opportunities for organic growth that was slowed down due to the saturation of markets in the western world as value chains were moving to Asia.

The client, therefore, chose to collaborate with SpendEdge to leverage its supply market intelligence services to build a transparent, structured and lean supply chain and gain detailed insights into supply markets.

Analyzing supply market conditions is imperative for businesses to identify growth opportunities. Request a free proposal and leverage our supply market intelligence services.

Solutions Offered and Client Journey

The supply market intelligence services offered helped the client to identify the current state and starting points for improvements in the procurement process. It paved the way for a structured chemicals supply chain that can address the specific needs of the client. Also, this helped the client to redesign their supply chain processes by conducting in-depth analysis and profiling right suppliers.

SpendEdge’s supply market intelligence services enabled the client to identify products without significant incremental sales and reduce non-profitable complexity by focusing resources on value-adding processes. The experts provided access to a wide range of information that helped the client to gain a high-level understanding of markets without spending much time on supply market analysis. This improved the supply market intelligence process and increased the efficiency of the sourcing lifecycle. In addition, supply market intelligence services offered valuable insights regarding developments in the category markets and helped the client to identify best cost sourcing locations and conduct a supplier cost analysis.

Wondering how you can analyze supply markets, category markets, and identify low-cost sourcing opportunities?

Request a free demo from our experts and gain real-time market information.

Key Findings and Outcome

Improved operating process

The supply market intelligence services provided real-time information on suppliers’ activities. This made the client aware of the disruptions that might require immediate actions. Also, this provided necessary insights to find alternate suppliers, devise effective strategies to improve the efficiency of the supply chain and increase reliability across operations.

Provided edge over competitors

Competitive advantage is often gained by companies that are more agile and can proactively devise strategies to address disruptions. Supply market intelligence services helped the client to gain real-time market information, reassess their footprint in Asia to avoid losing market to local players and strengthened their presence in North America.  For detailed insights on supply market intelligence services offered, request for more information.

Benefits of Supply Market Intelligence for Procurement Professionals

Develop superior supply chain strategies

Supply market intelligence services help companies to analyze the impact of potential events on the procurement functions and devise effective procurement strategies. It offers real-time insights into the implications of unique events or disruptions that can occur in the future. It also offers comprehensive insights for procuring the right products and services at the right price levels from suppliers.

Improve customer satisfaction

With the right supply market intelligence services, companies can gain additional information about the customer base and analyze it to defined criteria. They can utilize customer-specific service profiles to offer unique solutions and increase customer satisfaction by anticipating demand patterns.

Analyze suppliers

Supply market intelligence services provide a detailed understanding of various components of supply markets. This helps companies to identify low-cost country suppliers, understand possible supply channels, and obtain geographic distribution of suppliers; thus, enabling them to procure services at the right prices.

Want to conduct a supply market analysis to reduce supply risk? Get in touch with our experts and utilize our supply market intelligence services.

spend management

Procurement Market Intelligence: How a Pharmaceutical Company Achieved Cost Savings on Categories Using Plastic Polymers

The Business Challenge

A well-known pharmaceutical company that markets its products to healthcare practitioners, hospitals, and managed care providers in over 15 countries was facing predicaments in optimizing business process results. Their inability to track the supply market conditions was increasing the turnaround time for the Purchase Requisition (PR) to Purchase Order (PO) process.  The lack of metric visibility, proper control mechanisms, and cultural barriers was restricting global standardization and scalability of business operations.  The inefficient mechanisms were further resulting in excessive costs for the company.

Analyzing supply market conditions is crucial for companies to maximize ROI. Request a free proposal and access our complete portfolio of procurement market intelligence solutions.

Solutions Offered

In partnership with the client, the procurement specialists at SpendEdge conducted a detailed analysis of the supply market from the perspective of the pharmaceutical company and offered them with in-depth procurement market intelligence insights. They formulated effective strategies for achieving sourcing and procurement excellence, which helped the client to maximize its ROI. This substantially reduced the time spent on analysis and curating information and enabled them to focus on strategic sourcing and cost reduction opportunities.

A centralized and standardized transactional procurement process was introduced to create strategic and tactical functions. Under the new scheme of things, strategic activities were performed to eliminate delivery disruptions and reduction in payment disputes. Unproductive and inefficient processes were further identified across sites to measure the effectiveness of service delivery results. The strategic group was made responsible for category management across sites to proactively leverage global volume and monitor industry trends.

Want to standardize transactional procurement processes?

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Key Findings

Reduced Cycle Time

The standardized processes refined the Purchase Requisition (PR) to Purchase Order (PO) process and reduced the cycle time to 0.5 days from 2 business days. The metrics implemented improved the visibility of productivity and service levels within three months. Also, the procurement market intelligence solution helped consolidated major suppliers in the supply market who can provide end-to-end service and meet their changing demands.

Achieved Cost Savings

The procurement market intelligence solutions rendered by experts further helped the client to realize cost savings on categories which predominantly use plastic polymers (as the prices of polymers declined from their level in 2017-18). They developed a robust contract compliance team and established a contract having provisions for raw material price adjustments to deal with market fluctuations.

How Procurement Market Intelligence Solutions Help Companies?

Procurement market intelligence solutions help gather and analyze the information relevant to a company’s supply markets and improve the procurement process. They help classify critical-to-quality factors that influence the buying behavior and leverage and identify the costs associated with energy, overhead, materials, labor, transportation, profit, and other cost components. Also, procurement market intelligence solutions help reduce risks, increase savings, and improve decision-making capabilities for companies.

Leveraging procurement market intelligence solutions can offer numerous benefits for businesses.  Get in touch with our experts and know how our procurement services can help you leverage the benefits of procurement market intelligence solutions.

Outsourcing services

How Market Intelligence Can Dramatically Boost Your Supply Chain

The supply chain in modern companies is increasingly complex and dynamic in nature. From suppliers and industries to raw materials and commodities, there have been steady changes taking place across the supply chain of new age companies. Furthermore, the increasing uncertainty in the economic markets are forcing organizations to closely monitor market conditions and respond appropriately through improved supply chain strategies.

Traditional ERP systems are undoubtedly highly useful management tools, but they are mostly blind to external data. Their “inside-out” approach can leave companies inadequately equipped when planning and executing competitive supply chain strategies. However, with the advent of new market intelligence tools can resolve this problem. With the help of supply market intelligence, ERP systems can now incorporate real-time insights on suppliers, customers, and competitors, thus creating a perspective to reduce risk and create a competitive advantage. Here are just five benefits companies can realize with a market intelligence intelligence-driven supply chain.

Improved supply chain strategies

 It is vital to take into consideration the impact of potential events before undertaking supply chain planning. For instance, factors such as a sudden increase in demand, or in the event of any supplier undergoing a catastrophic event, companies must be able to be prepared to handle such situations. Market intelligence provides early warning signals and unique insights into events that are likely to occur. Furthermore, it can also help in assessing alternative suppliers and approaches. This prepares companies to handle unforeseen contingencies better.

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Competitive advantage

Competitive advantage often comes to companies who are more agile, nimbler, and react faster when compared to their peers in the market.  In fact, a quick reaction to unforeseen disruptions is the route for modern companies to gain a competitive advantage. For instance, if a particular supplier is struggling to meet the company’s demand, they can quickly move to an alternative. Or, if a key component may be difficult to procure, companies can lock up the supply before the competitor does. Market intelligence via real-time alerts is key to achieve this as it gives faster insights for companies to be prepared for contingencies in the future.


Supply Market Intelligence Helps a Leading Frozen Food Manufacturer to Identify and Assess Factors Affecting Market Volatility – A Food Industry Engagement

Engagement Overview:

The client, a pioneer in the frozen food market wanted to identify and assess factors affecting market volatility. The client wanted to study the market forces and implement a comparative analysis of the major players in the frozen food market. Hence they approached SpendEdge to help them leverage its strong expertise in supply market intelligence. Also, the client wanted to address challenges arising due to their inability to study the supply market.

About the Client:

One of the world’s largest frozen food company that manufactures and supplies frozen food products to regions across the globe.request proposal

Business Challenge:

The increasing uncertainty in the global frozen food market is the compelling factor that is forcing frozen food companies to closely monitors market fluctuations and adopt precise supply chain strategies to prevent supply chain disruptions. As leading frozen food companies devise precise procurement strategies that enhance profit margins, they are increasingly discovering major shortfalls in market intelligence and other such capabilities that form the basis for devising effective procurement strategies.

The frozen food market client was facing similar challenges, which compelled them to leverage supply market intelligence to make precise decisions related to business functions, profit objectives, budgets, and pricing strategies.

How did SpendEdge Help the Client?

The supply market intelligence experts at SpendEdge joined hands with the frozen food market client to address market fluctuations and develop deep market intelligence aimed at offering insights into core factors affecting the supply market including- market trends, regulatory changes, commodity pricing, and factors impacting global sourcing.

Our experts developed a comprehensive approach that responds to the long-term market trends while supporting their corporate strategies. The development process was split into the following three phases:

  • Step 1: Development of a commodity profilerequest proposal

This step is a pre-requisite for analyzing the supply market to gain a better understanding of the supply market scenario. By doing so players in the frozen food market segment will be able to gain clearer insights on the products being examined along with the scope of the engagement.

Our supply market intelligence experts began with a detailed analysis of supply market data to better understand the market scenario and develop a commodity profile. This involved extensive interviews with market leaders to analyze their business models. This enabled the frozen food market client to identify and classify all the potential suppliers that are capable of meeting their requirements.

  • Step 2: Evaluation of market leaders and their procurement strategies

An external review of the supply market enabled the frozen food market client to identify major players in the segment. A detailed supply market review helped them uncover procurement best practices and other procurement strategies adopted by market leaders. This enabled the client to compare their procurement strategies with that of the industry’s best and make necessary changes to existing strategies.

  • Step 3: A strategic three-step supply market intelligence-based approach to identify market trends and industry forces

The strategic three-step supply market intelligence approach offered detailed insights into supply and demand fluctuations in the frozen food market. Such an approach enabled the client to effectively manage the dynamism of the value chain by minimizing the time dedicated to information gathering and analysis.

Key questions answered in this supply market intelligence engagement include:

Frozen Food Market

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Benefits of the Engagement:

With the help of SpendEdge’s supply market intelligence solutions, the frozen food market client was able to analyze the global supply market scenario and make holistic and unbiased business decisions. The fact that they leveraged supply market intelligence throughout their procurement functions turned out to be a top differentiator in the company’s performance.

Importance of supply market intelligence in the frozen food market

It is a well-known fact that intelligence can only be gleaned from relevant timely information on market developments and fluctuations. Without which the massive data influx can result in major challenges for players in the frozen food market, given the enormous amounts of data available today. The generic nature of data makes it necessary for procurement officials to weed out outdated and irrelevant data to obtain the required information.

Since business operations are severely affected by market volatility, it is essential for frozen food companies to leverage intelligence in decision making. Moreover, the need for real-time market information on indirect spend categories and market dynamics is what is compelling leading frozen food companies to devise appropriate strategies to gain a competitive edge. To sustain a competitive advantage by doing so leading frozen food market players are now approaching SpendEdge to leverage its procurement expertise to thrive in a complicated market.

Our Findings:

This supply market intelligence engagement helps to visualize the importance of leveraging intelligence in procurement decision making. Also, the strategic use of supply market intelligence paves the way for organizations to confront the accelerating procurement challenges.

 If your organization is on the lookout for an objective way to reduce procurement related costs, we’re here to help. Wait no more! Go ahead and get in touch with our strategic sourcing experts to develop custom configured engagement models and procurement research deliverables.

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