Addressing Financial Losses and Enhancing Supply Chain Efficiency by Improving Spend Management Capabilities

SpendEdge, a well-known procurement intelligence solution provider, has announced the completion of its latest spend analysis engagement for a medical devices manufacturer. The study offers an overview of how spend analysis solutions can help address the financial challenges faced by companies in the medical devices industry. It also provides information on the key benefits of spend analysis and the best ways to conduct it.

Global economic growth, innovations, and the growing need for healthcare are set to expand the horizons for the medical devices industry. However, companies need to shift their supply chain priorities and better manage spend to benefit from the rising opportunities. They require effective supply chain management and strategic cost management strategies to identify potential opportunities and deliver actionable insights into the spend data. To leverage such opportunities, companies need to implement spend analysis solutions that can address challenges about the maverick spend across the supply chain and enhance their supplier relationship apart from improving ROI.

According to the procurement experts at SpendEdge, “It is crucial for medical devices companies to constantly monitor the suppliers’ actions and category management processes to advance risk management strategies and keep track of annual revenues and credit scores.”

Case Study

The Business Problem

The client is a well-known medical devices company with total revenue of $20 billion. Despite being a leading manufacturer of medical devices, laboratory instruments, and diagnostic products in the market, the company was facing financial losses due to the hidden costs of medical devices. This compelled the client to leverage SpendEdge’s spend analysis solutions and optimize their spend areas. Moreover, recent regulatory and production-related complexities were forcing the client to control their supply chains and manage their tail spend. They also wanted to identify and automate strategic sourcing and procurement functions to increase their process efficiency.

Evaluating historical purchases and compiling supplier data can help companies identify cost-saving opportunities.

The Solution Offered

To address the needs of the company, spend analysis specialists at SpendEdge, prepared a robust spend analysis report that can accurately evaluate industry data and gain real-time insights into the company’s procurement activities and expenditures. This helped the client to cut down the prices of high quantity products by identifying the best-in-class suppliers in the medical devices manufacturing space. The experts also employed a procure-to-pay system to analyze the category level spend of the company and achieve better savings. Further, the category level spend analysis data offered by the experts helped the client to price their products competitively. Consequently, it reduced supply chain risks and enhanced their presence in the industry.

Inaccurate pricing of products often causes huge financial losses for the companies in the medical devices industry.

SpendEdge’s spend analysis solutions helped the client to:

• Reduce prices of high quantity products.
• Obtain real-time insights into the company’s procurement activities and expenditures.

Read the complete article to learn more.