NEW YORK, Sept. 18, 2023 /PRNewswire/ — A prominent US-based manufacturer specializing in green energy components faced unprecedented challenges during the pandemic. The outbreak disrupted key raw material supplies, including crucial green energy materials, creating the potential for price escalations that could trigger shopfloor disruptions and revenue shortfalls. Even as the world gradually emerged from the pandemic’s shadow, supply chain activities were inching toward normalcy at a sluggish pace. In response, the company sought to gain precise insights into price trends for its business segment, factoring in various variables, such as historical behavior, pandemic-induced economic shocks, end-user demand, and sentiment.
In early spring 2022, the company embarked on a collaborative journey with SpendEdge experts, driven by thorough due diligence and a commitment to address their pressing supply chain concerns.
SpendEdge experts undertook a comprehensive evaluation of the company’s supply chain, with a keen focus on identifying segments in need of enhanced visibility, forecasting accuracy, route optimization, and stakeholder collaboration. This rigorous, end-to-end assessment encompassed critical phases of the interconnected supply chain, spanning green minerals mining, storage, transportation, and the final delivery of components to end customers. Through meticulous supply-side analysis, SpendEdge specialists unearthed inefficiencies weighing down the company’s intricate logistics system. Subsequently, alternative supply sources were identified to bridge the gap between the company’s requirements and its current supply. A shortlist of alternative vendors was meticulously curated, assessing key performance and sustainability measures, including quality, financial stability, risks related to slavery and child labor, environmental practices, and social responsibility. Furthermore, the team conducted a benchmarking exercise to scrutinize the company’s vendor billing rates, ensuring competitive value and identifying critical price drivers within the vendor ecosystem. Armed with comprehensive cost benchmarking data, the company now enjoys a more favorable position in vendor negotiations. Additionally, SpendEdge experts delivered SpendEdge’s proprietary commodity outlook, offering critical insights into base raw materials and corresponding inflation indicators for sub-components.
Leveraging SpendEdge’s extensive spend market intelligence, the company initiated a Request for Proposals (RFx) with the shortlisted alternative supply sources for critical metals in strategic energy technologies. Equipped with accurate data on pricing outlooks and commodity and sub-component inflation, the company’s category managers are strategically positioned to lead negotiations, gaining a distinct advantage at the bargaining table. With the right circumstances in place, the company’s procurement organization anticipates cost reductions, reinvigorated supplier relationships, and substantial bottom-line improvements in the short-to-medium term.
SpendEdge’s commitment to empowering organizations with actionable market intelligence drives value, innovation, and resilience in today’s dynamic business landscapes.
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SOURCE SpendEdge
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