Spend Analytics and Supplier Benchmarking Saves USD 5 Million for a Manufacturing Company

Sep 23, 2016

Business Challenge

Improving supplier selection by supplier evaluation and spend analysis. A global manufacturing industry client wanted to conduct spend analysis, and evaluation of its suppliers to shortlist the most cost-effective suppliers.

Situation: Understanding the global procurement spend for the manufacturing industry firm

The manufacturing industry client had a global network of suppliers and wanted to analyze the spend on suppliers and procurement, quantify supplier profitability, and develop a supplier selection scorecard to shortlist ideal purchasing partners.

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Spend analysis, supplier evaluation and vendor scorecard development

We churned the client’s global procurement and spend data, performed spend analysis, cost benchmarking, and supplier evaluation to create a vendor scorecard. This helped to quantify supplier performance, map procurement spending to strategic sourcing requirements, and we were able to recommend the best possible options for supplier selection.

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USD 5 million reduction in procurement spend.

The manufacturing industry client used our vendor scorecard and insights to identify the most cost-effective suppliers and develop effective spend practice, which resulted in better supplier relationship management while reducing procurement spend by USD 5 million.

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