Tag: Category spend analytics

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Spend analytics solutions helped a manufacturing company to identify spend patterns and increase profitability by 12%

The client is a leading manufacturer and distributor of high-quality construction equipment based out of Germany. The company is well-known for delivering high-quality construction equipment and services in more than 14 countries.

In today’s complex business scenario, gaining a 360-degree view of the spend may seem like an uphill task, even for well-established companies. The client, a multinational conglomerate in the industrial and manufacturing sector, was no exception. With business units spread across Europe, the client faced several spend management issues that left a measurable impact on their business operations.

Quantzig’s spend analysis solutions can be custom configured to your organization’s existing processes and spend management system’s subtleties to help you deliver sustainable results. Request a FREE proposal to gain in-depth insights into our portfolio of spend analytics solutions.

Business Challenge

Global manufacturing companies face a wide range of challenges including the need to adhere to local regulations related to labeling requirements and safety standards. Such factors are pressurizing manufacturing companies to adhere to the regulatory requirements without compromising on their operational efficiency. Spend data, data systems, and domain knowledge are often siloed within specific groups of teams in manufacturing companies. Therefore, leveraging spend analytics solutions has become important for companies to address such challenges.

spend analytics CS

The client, a German manufacturing company, was struggling to gain a consistent and unified view of spend throughout different functional groups within their organization. With minimal access to vendor information and a mere 6% of the organization’s spend data categorized, the client was experiencing a steady decline in their negotiation power. By leveraging spend analytics solutions, the manufacturing company was looking to overcome such challenges caused by data silos and operational complexities. As a result, they approached Quantzig to gain greater visibility into their spend patterns and improve profitability.

Our spend analytics experts can help you achieve notable improvements in supplier performance, and efficiency. Get in touch with them right away!

Solution Offered and Value Delivered

The spend analytics experts at Quantzig adopted a comprehensive approach to understand the core business challenges faced by the client. The initial phase of the engagement revolved around analyzing the client’s existing spend data and patterns. By gaining valuable insights from such analysis, the experts then unlocked the potential value in the growing spend data of the client which further helped them to identify roadblocks to spend management. Also, the solution offered by Quantzig enabled the manufacturing company to integrate spend and supplier data and eliminate bottlenecks by leveraging real-time spend insights.  As a result, the client realized an increase of 12% in their profitability and identified several saving opportunities which were previously unknown to them.

Quantzig’s spend analysis solutions encompass the entire value chain, with each offering uniquely configured to meet distinct client requirements. Request a FREE demo below to know more.

Spend analytics solutions also helped the client to:

  • Proactively address compliance related issues
  • Achieve notable improvements in supplier performance
  • Streamline their procure-to-pay operations

Why choose Quantzig as your next analytics partner?

Quantzig’s spend analytics solutions provide companies with opportunities for procurement that help them to achieve wider business objectives. An in-depth spend-analysis solution by Quantzig helps leading organizations to rationalize their supply base, deliver unit cost savings from unmanaged spend, reduce maverick spend, and harmonize pricing across buying centers. At Quantzig, we bring together scalable advanced technology and analytics experts to deliver accurate results that give sourcing and category teams confidence in the spend data, so they can focus on delivering value.

To learn more about how our spend analytics solutions can help you tackle supply chain risks and drive continuous innovation and improvement, request for more information now.

To know more about spend analytics, take a look at our holistic guide to spend analytics here:

A Definitive Guide to Spend Analytics

spend analytics

A Beginner’s Guide to Spend Analytics

What is Spend Analytics?

Minimizing cost is the major cause of concern for many companies and this is the reason they spend more time in the process of spend management. Spend analytics can make this easier by optimizing the supply-side performance and consolidating the data from the supply chain. Spend analytics help companies to make data-driven decisions and identify better opportunities for savings by analyzing their spending patterns. Also, spend analytics can assist in examining the expenditure of an organization and offers significant visibility into the procurement spending of an organization. This can further help the organization to improve the supply chain operations and result in better returns.

Our spend analytics solution can help you in minimizing supply chain disruptions. Request a FREE proposal to learn more about our portfolio of services.

Benefits of Spend Analytics Solutions

spend analytics

Better visibility on suppliers and spending

By leveraging spend analytics solutions, any organization can yield valuable insights into its expenditure in real-time. This detailed information can be handy in improving the overall procurement process. Consequently,  organizations can adopt better practices for procurement that will be more helpful and efficient in managing the relationship with suppliers, improving supplier base and category management.

Spend analytics is the key to manage the tail spend of any organization. Request a FREE demo below to find out how it can help you unlock cost-saving opportunities.

Helps in the category level analysis

Spend analytics solution can help companies to analyze spend at the individual category level. This can assist in gaining visibility into the overall spending of the organization to control the cost-effectiveness. According to recent research results, organizations that leverage spend analytics develop a better relationship with preferred suppliers. Furthermore, spend analytics can help organizations to achieve bigger business objectives by making sourcing efficient and optimizing the supply base.

Assists in managing the risks

Working with the same suppliers for years can incur potential risks for organizations. A robust spend analytics solution can help organizations to innovate their supply chain and deliver new products and services to the customers. Also, by gaining actionable insights from analytics dashboards, companies can make capital improvements and deal with unforeseen challenges such as supply chain disruptions, cash-flow issues, and labour shortages. Spend analytics also provides an opportunity for procurement teams to contribute to wider business objectives and deliver unit cost savings and reduced maverick spend across buying centres.

Are you finding it difficult to improve your bottom-line due to inefficient spend management? Get in touch with our experts right away!

Quantzig’s Advantage

The fragmented, inaccurate, and unstructured data can lead to undesired outcomes for businesses and can charge heavily on their pockets. Quantzig’s spend analytics solution offers comprehensive category wise spend analysis based on commodities, suppliers, supplier locations, buying locations, business units, and cost centres. This helps businesses to enhance visibility into spending patterns for all indirect spend categories across an organization’s supply base. Our customized analytics dashboards deliver accurate results that instil confidence in sourcing and category teams regarding the spend data that can help them deliver value.

Key Steps to Move to More Advanced Category Management Analytics

Category management helps businesses to drive and deliver growth, value, and innovation. But there are many companies who still struggle with the transition from the strategic sourcing to effective category management. Effective category management not only helps in smooth business operations but also help in enhancing strategic sourcing consistently. The process of category management analyzes risks, trends, and demands in any category. Furthermore, it incorporates a program of demand management to understand the demand structure of goods and services better and prioritize them accordingly. Such an approach help businesses to ensure that there is less wastage of revenue. Advanced category management analytics can make this process even simpler. In this article, our analytics team has highlighted some of the key steps to advanced category management analytics that can help companies to drive their material improvements in both top line and gross margin. Also, advanced category management offers a comprehensive overview of the performance report, report on collaboration with suppliers, and the development of category managers.

Request a FREE proposal now to know how category management analytics solutions can create a difference in your business outcomes.

Steps to Establish Advanced Category Management

Step #1: Start your analysis with a broader perspective

Advanced category management analytics starts with the step of analyzing data with a broader perspective. This can help in an in-depth and tactical analysis of different categories by reviewing the trends at different levels of geography. For advanced category management analytics, you must consider the trends in the national market across key channels. Here are a few questions that you must ask in order to offer advanced category management analytics solutions:

  • Who is growing and slumping?
  • How does this vary from your channels and region?
  • And how can a company benefit from these results?

Such insights can offer a better picture of opportunities that can be incorporated into your tactical analysis and recommendations.

Category analysis can help you analyze your target customer segments based on their buying behaviour. Request a FREE demo now for better insights.

Step #2: Drill down through data for actionable insights

Category management analytics can offer desired results only when you drill down through the accumulated data to gain a broader perspective. You must consider the data of more than one time period to analyze the long and short-term trends. Also, you must gauge different segments of consumer based on the decision tree of consumers to offer more personalized solutions. An effective data visualization is important in order to understand different metrics of the gathered data.

Want to know more about the benefits of big data visualization? Read our latest success stories driven by data visualization here

Weekly Round-Up: A Storyboard on the Benefits of Big Data Visualization

Step #3: Refer multiple sources for an effective category analysis

Utilizing multiple data sources is one of the significant steps to advanced category management analytics. It is important that you analyze your point of sale data, data of consumer panel, data of consumer purchase behaviour. To do so, you need to develop an ability to look across various data sources and incorporate derived insights from multiple sources for better decision making. Furthermore, it also helps in identifying market opportunities.

Step #4: Make your data meaningful

Category management analytics helps in finding relevant benchmarks to offer best services to customers. Therefore, for advanced category management analytics, it is crucial that you analyze your data and extract meaningful insights to establish benchmarks for identifying new market opportunities.  Also, you can compare the data of your competitors with your own data sets to understand the value of your data in related categories.

Are you finding it difficult to optimize your promotional activities? Category management analytics can help. Get in touch with our experts now.

Step #5: Set thresholds for category analysis

Thresholds can be applied to your category management analytics to gain a perspective on which business strategy is driving sales in different categories. Also, for advanced category management analytics, you can measure the efficiency of SKU by gauging the number of items added to each brand in a certain time period.

Get More Info:

Petrochemical company improves spend visibility by implementing category spend analytics solution

Business Challenge: Optimization of procurement process.

A leading petrochemical client wanted to conduct category spend analytics to optimize the procurement process and improve procurement savings.

Situation: Lack of visibility of spend levels on an individual category level.

The client had large supplier base spread across geographies and wanted to identify opportunities for cost reduction and process optimization. They wanted to setup a robust category spend assessment solution that would assist them in streamlining the procurement process and improve cost savings.

Solution/Approach: Category spend analytics solution.

We conducted category level spend assessment and reviewed supplier contract compliance. We identified opportunities for consolidation of spend to strategic suppliers. The category specific opportunities where automated such that blanket ordering mechanism could be implemented, and procurement process could be optimized.

Impact: Improved procurement process and reduced operations costs.

Client gained visibility on the spend variance and contract compliance. These insights were used to improve procurement cycles, and to reduce operations cost. They were also able to improve the satisfaction levels of internal customers, and rebuilt trust of strategic suppliers.

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