SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their strategic sourcing engagement for a leading steel company.
The client wanted to improve cost savings in indirect and MRO spend by reducing their sourcing costs. The total engagement period that was agreed upon with the client to achieve this business objective was one year.
- Objective 1: The company wanted to streamline processes of the acquired companies and adopt strategies that can improve the overall efficiency.
- Objective 2: They also wanted to analyze cost structure of suppliers, implement strategic purchasing, and reduce the reliance on tier 1 or direct suppliers.
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Strategic sourcing enables companies to mitigate risk, enhance the quality of goods and services, reduce costs, and improve supplier relationship. It also streamlines the procurement process and creates value in the customer-supplier interface, says a procurement expert from SpendEdge.
Key findings and solutions offered
In a span of one year, the client “ a leading steel company “ significantly enhanced saving opportunities by smartly using the excess material for offal utilization. The solution offered helped them to:
- Ensure secure supply of materials by mitigating risks associated with resale programs and hedging.
- Analyze different suppliers and re-allocate the processing to a low-cost producer in the value chain.
- Improving logistics management capabilities can boost profitability for companies. Request a free proposal and access our complete portfolio of procurement market intelligence solutions today!
Outcome: The strategic sourcing process developed by experts at SpendEdge helped the steel company to shift volume to suppliers in other countries and import that steel at competitive prices. This enabled them to save between 15 and 20% which accounted for an annual savings of $17 million a year. The solution offered, helped the client to gain detailed insights to increase the usage of mini-mills and increase profit margins.
To access the complete case study on strategic sourcing, contact our experts here!
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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