Major Medical Insurance Provider

Challenge

  • Difficulty reviewing annual year spend on tail end suppliers.
  • Data stored in multiple languages.
  • Data Invisibility led to inefficient negotiation strategies.
  • Lacks a systematic method to look after this category.
  • Unable to address the tail spend.
  • Excess Spend on Business Category/Units.

Solution

  • Implemented centralized procurement to consolidate the data.
  • Reviewed and analyzed existing supplier contracts.
  • Created performance metrics to evaluate the current suppliers.
  • Negotiated with suppliers to bring down the cost.
  • Divided the Business into multiple units for better governance and cost optimization.

Benefits

  • 75% improvement in tail spend visibility.
  • Performance of the suppliers can now be tracked.
  • 6-9% annual savings after category management initiatives.
  • Ensured efficient management of all addressable direct and indirect spend segments, and increased the share of actively managed spend within the organization.