LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest success story on achieving annual savings of $150 million in direct material costs for an aerostructures manufacturer.
The company wanted to minimize their direct material costs by 25% to gain a competitive edge in the market. The key objectives they aimed to achieve through this engagement are mentioned below:
- Objective 1: The company wanted to capture supplier data and improve the procurement process to renegotiate supplier contracts and reduce costs.
- Objective 2: They also wanted to shorten long source-to-contract timelines to execute contracts rapidly.
- Wondering how you can better manage suppliers, improve the sourcing process, and reduce direct material costs? Request a proposal today and our experts will get back to you with smart procurement solutions.
“The rising demand for air travel is putting pressure on the aircraft industry’s supply chain and compelling companies to grow aircraft production and sales. Aerostructures manufacturers, therefore, need to improve their sourcing process to reduce costs,” says Srinivas R, Procurement Manager at SpendEdge.
Want to conduct comprehensive global aircraft industry analysis to reduce production costs? Get in touch with our experts today!
Key findings and solutions offered
In collaboration with SpendEdge, the client – a global aerostructures manufacturer – identified suppliers from low-cost countries who could supplement existing supplier capabilities and meet timelines of delivery. The solution offered helped them to:
- Achieve annual savings of $150 million in direct material costs.
- Reduce the number of suppliers to 50% and mitigate risks associated with them.
- Mitigating supplier risks and reducing material costs requires detailed supplier data and market insights. Request a free demo to improve sourcing decisions by identifying top suppliers from your region, their pricing models, and accurate performance ratings across categories.
Outcome: SpendEdge's customized aircraft industry analysis helped the client to measure the effectiveness of the existing direct sourcing process. This helped the client to develop a robust sourcing strategy and identify potential suppliers from low-cost countries. Our analysis further helped the client to bring all suppliers to the same payment terms and improve sourcing execution. The solution offered enabled them to reduce negotiation timelines during the sourcing process and onboard new suppliers.
To gain detailed insights into the solution offered by our experts to the company in the aircraft industry, request more information.
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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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