LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest success story on identifying $7 million in savings for a construction equipment manufacturer.
The company wanted to address pressure from the parent company to reduce the cost of goods sold (COGS). The key objectives of the engagement are mentioned below.
- Objective 1: The company wanted to reduce the direct material spend to minimize COGS.
- Objective 2: They also wanted to deliver a greater amount of value to suppliers without asking for price reductions or hampering supplier relationships.
- Interested in gaining detailed insights? Request a free demo and know how we can help you perform supplier cost analysis and provide access to over 1000+ procurement reports.
“The US construction equipment industry is highly globalized and susceptible to changes in global economic conditions and needs to address exchange-rate dynamics,” says a procurement expert from SpendEdge.
Key findings and solutions offered
In collaboration with SpendEdge, the client – a subsidiary unit of a large construction equipment company – analyzed over 50 suppliers accounting for $200 million of OEM spend. The solution offered helped them to:
- Achieve $7 million of extra profit and identify several other cost savings opportunities.
- Become one of the most profitable divisions in the parent company.
- Are you looking for solutions to reduce the direct material spend? Request a free proposal to access our customized supplier cost analysis solutions today!
Outcome: To address the specific requirements of the client, the experts at SpendEdge conducted a top-down analysis of supplier prices based on financial statements and their industry comparable. They evaluated changes in costing inputs and identified the best cost modeling techniques based on the suppliers’ unique products. This helped the client to create independent assessments and identify potential suppliers to procure products and services at the right prices.
To access the complete case study on how our supplier cost analysis solutions helped a leading construction equipment company to $7 million in savings, read the complete case study here!
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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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