Building materials firm utilises Solugo’s procurement and sourcing intelligence solutions: A Case Study

Business Challenge

One of our client, the Chief Procurement Officer (CPO) of a building materials company based out of UK, was facing challenges in readjusting the procurement strategy to its parent company while delivering cost-effectiveness across the amalgamated businesses.

Research Methodology

We were responsible to deliver a rapid valuation of supplier data to provide distinguishability of supply chain in-place, insights into the procurement operations and the expenditure.

Sourcing of required data was a major challenge wherein we needed spend and contract details from individual category managers which available in scattered format hence, making it unlikely to classify critical factors including highest spend areas, contracted spend, compliances et al.

Results

Our methodology generated an overall representation of the company’s procurement function by removing data-noise and providing data applicable to client’s objectives and KPIs. Visualisation software was used to present the key findings, including spend by transaction value, by commodities, by suppliers, by sourcing managers et al.

We recommended:

  • Procurement cycle tweaks to positively drive supplier management and procurement operations.
  • Commodity heat map preparation to enable cost savings.
  • Changes to the procurement team structure and reallocating spend categories.

Value Addition

  • Our research insights formed the basis of a new category management strategy, which created a more strategic procurement function in client’s business.
  • Since the data and analysis process could be updated and scaled up, it provided futuristic model for the client to enable better control and planning in the long-term along with identifying short-term actions.

Solugo facilitated a Defence and Aerospace company to identify risks ascending from the absence of supplier/vendor visibility: A Case Study

Business Challenge

A Defence and Aerospace firm identified that absence of visibility of its vendors and suppliers created risks to its supply chain. The company engaged Solugo to evaluate its supplier base and to monitor risks on an ongoing basis.

Research Methodology

Our holistic valuation requires research into numerous internal and external risk factors, including:

  • Business (input cost, product demand, economic levers)
  • Financial (Z-score, revenue change, profitability)
  • Operational (natural events, geo-political changes, raw materials)
  • Ethical (consumers, social communities, labour issues)

We used a rating and ranking methodology to evaluate the source data and assign risk ratings to individual suppliers which is delivered through a risk portal as per client’s requirements.

Results

Our holistic valuation requires research into numerous internal and external risk factors, including:

  • Our solution enabled the category managers to improve business permanency by acting on potential risks which could dislocate the vendor performance.
  • It enabled the client to filter out insights relevant data thus resulting in effective planning and decision-making related to corporation’s overall risk exposure.

Value Addition

  • The client gained access to our extensive expertise in its industry sector, supply chain and risk management field which heightened the value of its procurement function.
  • The proactive alerts enabled client to maintain business steadiness and permit them to utilize these insights during negotiations and contract renewals.
  • Intelligence from the supplier risk assessment enabled the client to develop a long-term risk mitigation strategy to retort changes in the vendor network.

Solugo facilitated a Japanese chemical manufacturing firm to enhance its supply chain capabilities to gain access to US market: A Case Study

Business Challenge

A Japan based chemical manufacturer wanted to enhance its supply chain management system to gain easy access to US market.

Research Methodology

Results

Value Addition