ProcessCo.s’ industry has experienced high consolidation over the last 15-20 years. With only 4-5 large players in the market, ProcessCo.s’ customers now had limited options to choose from. Thus ProcessCo. was concerned with any changes in its customer supplier strategy as it could have a large impact on their financial performance.
ProcessCo. wanted to get deeper insights from its customers wrt their sourcing strategies due to supplier market consolidation. For this project three key buyer profiles were analysed: P&L, production and sourcing.
The key research questions were:
Q1. Do customer companies prefer multi-supplier strategies to hedge risks?
Q2. What are the pros and cons of each strategy from each key decision maker perspective?
Q3. What pricing model do customers prefer for product and service purchase?
ProcessCo.’s key customer segment was facing two main challenges:
Overall market and growth decline
Few supplier options & limited knowledge
To counter supplier power, ProcessCo.’s customers started allocating smaller contracts to new suppliers, to keep competition alive in critical application areas. The customers were also highly risk averse towards any new solutions a small loss in production could significantly impact their annual bottom line results.
The project was executed in three-phases:
SCG's agile workforce interviewed senior management at ProcessCo. to understand their perspective on the key topics that potentially impacted the customer’s sourcing decisions. Then it listed the components of each topic and further developed hypotheses for each.
During this phase, SCG's agile workforce prioritized the six sourcing topics based on their impact on purchase influence and decision making. To gather these insights, in-depth interviews were conducted with 29 industry experts from three different profiles i.e. P&L, Production and Sourcing. The findings revealed the priorities of each business function and leader based on each profile's key responsibility area, KPIs and reporting structure
Based on the insights gathered, SCG's agile workforce created a communication strategy for ProcessCo. based on each stakeholder’s function priority. Finally, the topics were listed in order of willingness-to-pay.
ProcessCo. utilized SCG’s on-demand workforce to accelerate progress on a critical company topic. Based on the outcome ProcessCo. revised its sales strategy and customized it to target the KPIs of each business function at the customer's organization.
Contact us today to learn more about on-demand workforce and accelerate development on your most pivotal projects!
Book a meeting
PowerCo. is expanding its sales to a new market area and in order to meet the requirements of the new market, they had to customize their sales process. To accomplish this, PowerCo. sought to customize their existing Microsoft CRM environment to be applicable in the new market.
Read more →
Benchmark the competitive landscape in three business segments On-highway, Off-highway, and Marine, understand the product portfolios, M&A and strategy of competitors.
Read more →
As a leading chemical industry company, ChemicalCo.’s management sought to understand the emissions in its supply chain. Thus ChemicalCo. set out to measure its outbound logistics emissions by utilizing an EU recommended framework.
Read more →