SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest success story on developing a direct buy model and achieving savings of $21 million for a heavy equipment company.
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Engagement background
The company wanted to consolidate their supply base across North America and Europe and transition their business towards alternative means of supply. The key objectives they aimed to achieve through this engagement are mentioned below:
- Objective 1: The company wanted to develop an effective sourcing strategy to address inconsistent volatile pricing by location.
- Objective 2: They also wanted to devise formal supply agreements to ensure compliance with government safety regulations.
- Wondering how you can consolidate your supply base across different locations? Request a proposal to gain free access to our solution portfolio and our experts will get back to you at the earliest.
"As the pressure to accommodate customer demands for unique products has increased, heavy equipment companies have been faced with the need to improve the strategic sourcing process to minimize costs, consolidate supply base, and remain competitive in the current economic environment," says Srinivas R, Procurement Manager at SpendEdge.
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Key findings and solutions offered
In collaboration with SpendEdge, the client a heavy equipment company - developed a robust sourcing strategy and realized over $21 million in cost savings. The solution offered helped them to:
- Identify the best cost countries by category and determine regulatory requirements for each manufacturing and service location.
- Develop a formal cost reduction model with suppliers to establish global supply agreements for key categories.
- Closely monitoring supply market conditions is crucial to identify strategic locations for the supply of materials. Request a free demo to access our ready-to-use market intelligence reports now!
Outcome: With SpendEdge's help, the heavy equipment company was able to devise an effective strategic sourcing strategy and target key categories. They leveraged proprietary direct buy model to establish OEM, improve mill level relationships, and transition supply away from incompetent distributors. Our strategic sourcing best practices also helped them to identify opportunities to align with global suppliers and gain operational benefits. The solution offered, helped the client to establish global supply agreements for key categories, minimize price volatility across all regions, and achieve $21 million in cost savings.
To gain detailed insights into the solution offered by our experts to the heavy equipment company, request more information.
About SpendEdge:
SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190819005350/en/
Contacts:
SpendEdge
Anirban Choudhury
Marketing Manager
US: +1 630 984 7340
UK: +44 148 459 9299
https://www.spendedge.com/contact-us
