Want to Know How an Energy Company Reduced Part Costs by Deploying a Should Cost Model – Request A Free Demo from SpendEdge!

SpendEdge, a leading provider of procurement market intelligence
solutions, has announced the completion of their supplier
management study for a power generation services provider.

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https://www.businesswire.com/news/home/20190411005441/en/

Supplier management study for a power generation services provider. (Graphic: Business Wire)

Project background

The client sought to reduce purchasing costs occurring due to poor
supplier management by identifying the right negotiation levers. The
time decided to meet this business objective was 10 weeks.

• Objective 1: The company wanted to drive cost reductions in
  direct spend by analyzing various drivers of part cost.
• Objective 2: They were interested in improving their supplier
  management system to defend price requests from suppliers.
• Want to gain more insights? Request
  a free demo from our experts and determine factors driving
  part costs.

“Since best-in-class companies are negotiating supply contracts to
ensure on-going improvements in quality, price, and delivery
performance, it becomes imperative for companies to leverage supplier
management solutions and unlock new opportunities,” says a
procurement expert from SpendEdge.

Key findings and solutions offered

In a span of 10 weeks, the client – a
power generation services provider – was able to set up a
toll-gating procedure that prioritized the parts in line with client’s
negotiation schedules. They improved supplier management capabilities
and ensured the involvement of stakeholders in the toll gating process.
The solution offered helped them to:

• Determine the potential parts for should cost analysis on the basis of
  planned and purchased orders.
• Improve supplier management capabilities and identify the right
  negotiation levers.
• Deploying a should cost model enables companies to gain detailed
  insights on the material specification, material costs, and annual
  usage. Request
  a free proposal and access our complete portfolio of
  supplier management solutions today!

Outcome: SpendEdge strengthened the client's relationship with
suppliers and helped them to identify key negotiation levers. This
allowed them to gain visibility into various drivers of part cost and
drive deflation. The experts at SpendEdge also deployed a should cost
model and set up a toll gating procedure that significantly improved the
manufacturing process and reduced part costs by 13%.

To access the complete case study on supplier management solutions, get
in touch with our experts here!

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.

Request free proposal to know more, https://www.spendedge.com/request-free-proposal

View source version on businesswire.com: https://www.businesswire.com/news/home/20190411005441/en/