Medical devices manufacturer addresses the data challenge to target savings

Medical devices manufacturer addresses the data challenge to target savings

Medical devices manufacturer addresses the data challenge to target savings

Managing Director at Procura Consulting

 

Turning financial numbers into high quality procurement spend data

A Private Equity owned manufacturer and distributor of products for the diagnosis, treatment and monitoring of respiratory conditions was looking to address the challenge of accessing spend transparency in order to inform cost reduction opportunities.

With global revenues of $800 million, financial data had historically been drawn from a number of different systems and data sets throughout an extensive base of international operations. Controlling procurement costs would become increasingly important as the business continued to grow, but accessing high quality procurement spend data was proving hard to come by.

 

Creating global spend transparency

The prime objective was to build a spend analysis to provide complete transparency of the total global spend of the organisation, from the perspective of all factories and subsidiaries worldwide.

To achieve this, the first task would be to collect and combine multiple data sets from the various business units and factories around the world. Once cleansed and validated, a bespoke categorisation platform could be developed and the spend data effectively categorised.

The Procura ProIntell Spend Analysis Platform was used to provide complete transparency of global spend; by subsidiary, business unit and cost centre and by supplier, supply market category and contract.

The data was also delivered back into the organisation’s own Tableau reporting tool with structured data architecture created to enable ongoing ‘spend mapping’.

 

“Switching the light on”

For the very first time in its history, the organisation achieved complete visibility of all supplier spend – including all direct and indirect categories. As summarised by the CFO, the experience felt like “switching the light on for the very first time”.

Global chart
  • Key common strategic suppliers were identified and targeted for a programme of Supplier Relationship Management (SRM) 
  • Newly acquired procurement insights led to the targeting of three sourcing projects in Logistics, MRO and IT & Telecoms covering $40m of annual spend, with savings of over $3m identified

 

Points to consider

• Procurement spend data is the foundation of procurement capability – it enables profit improvement and is crucial during times of rapid growth and expansion
• The larger organisations are, the bigger the challenge – with multiple data sets, ERP’s and geographic boundaries requiring consideration
• If procurement spend analytics is a challenge, consider expert help

 

Subscribe below for regular Insights

* indicates required

Please select all the ways you would like to hear from Procura Consulting:

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.