Spend and Opportunity Analysis
Gain visibility into primary cost drivers. Inform executive level decisions around next-level supply chain strategy, functional budgets, and spend management. Segment and actively manage risks and opportunities presented by supplier relationships.
A Spend and Opportunity Analysis provides a baseline and platform to prioritize and allocate resources aligned to the business’s overall objectives. By visualizing spend data, your team can uncover insights that guide valuable discussions around challenges and opportunities. Whether your business works with 10 vendors or 500, Nagel Strategies will assist your team in categorizing spend commodities, break down areas of opportunity, and develop a road map based on your unique needs.
How it Works
We begin with a kickoff consultation that includes a review of historic, raw transaction data pulled from existing accounting software. This is a key diagnostic exercise to level-set expectations and to scope an appropriate engagement with Nagel Strategies. At this point we will also discuss hypotheses, internal audiences and goals, as well as current team dynamic.
Nagel Strategies then develops a series of data visualizations and prompting questions and actionable ideas to aggressively target and achieve goals. We work directly with finance and operations team members, as well as functional leaders as needed, to dive deeper into the nuances of supplier relationships and contracts when warranted to develop a holistic analysis.
Decision makers are convened to review findings and suggested roadmap. The pipeline is formalized in a workshop-style event. The desired outcome is to align on quick-wins and longer-term projects, taking into consideration unique aspects such as regulatory risks, team readiness, and executive support. A roadmap might include a combination of: supplier relationship management activities to optimize relationships with a key supplier; develop a preferred supplier list; consolidate suppliers; implement minor or major adjustments to streamline procurement operations; or prioritize spend categories to target savings, develop benchmarking insights, negotiate contracts, or conduct a competitive RFP.
A Spend and Opportunity Analysis will invariably improve your ability to manage resources and extract more value from your supplier partnerships.
Pre- and Post-Merger Support
In healthcare and medical technology, a company’s supply base represents unique competitive value that adds to its attractiveness as an acquisition target. Conversely, there may be risks hidden in the supply base when it comes to supplier integration and procurement processes.
Nagel Strategies provides support services to help M&A due diligence teams identify redundancies and opportunities to renegotiate supplier contracts. By engaging Nagel Strategies to conduct a Spend and Opportunity Analysis early in the process, the due diligence team will find areas of leverage while anticipating resources needed to ensure a smooth integration.
Call +1 412 376 3745 or use the contact form below to schedule a free consultation.