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.