Procurement cost framework
Procurement cost framework for a leading manufacturer in animal feed and agribusiness.
Challenges

Our client is a leading manufacturer in animal feed and agribusiness with 25+ manufacturing plants and multiple warehouses across India. Their procurement of raw material, chemicals and engineering spares is done by the regional teams. However, raw material prices are highly dependent on commodity pricing, which changes almost every week. Due to this business problem, there is very low visibility on the cost variance across various products and vendors.

The client wanted to develop an integration solution to monitor the cost differential across vendors, and between the purchase and the commodity price, to define product quality across regions.

Solution

Think Analytics, in collaboration with the client, designed the framework for pricing deviations and its impact on the product quality score. We integrated the data from multiple sources that could represent the required analytics and reporting. We also deployed visualization using Power BI and set up automated updates for these reports. We defined user-access management to limit the data view based on role-level need and security.

Impact

To help the client on their journey, we provided them with detailed information for the buyers to make better and faster decisions. Our solution improved negation power with the vendors, maintaining product quality. It also improved the bottom lines by reducing the cost variance.

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