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Customer background and challenges

A leading commercial vehicle manufacturer based in Sweden boasts an impressive annual turnover of approximately £11bn and employs over 10,000 individuals. With a new CIO joining the organisation to spearhead a digital transformation, the customer required a very granular detail of the current tech spend within a particular country of operation (OpCo). Despite dedicating months to an internal project that aimed to collate spend data for this entire operational sector, progress was sluggish, consuming significant internal resources.

At this stage, Spendkey was introduced to address:​

  • Challenges in consolidating multiple data sources.

  • An escalating reliance on internal resources.

  • Growing apprehension among the country's executives regarding the accuracy and quality of the data, since the project's scope for the entire operational country expanded.​

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The Solution

  • Extracted spend data from ERP systems to understand the various elements of third-party costs.​

  • Consolidated, condensed and cleaned the data to create a unified data set.

  • Auto categorised the data using Spendkey’s standard taxonomy.

  • Spend analysis provided visibility and transparency to the steering group within 30 days, including identifying business-critical processes that impacted top-line revenue and mapping IT services that support those business-critical services.

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DESIGNED TO DELIVER

Benefits

Insights from spend data helped the customer to:

Uncover & tackle shadow spend

Spendkey identified shadow spend initially labelled as inter-company expenditure, triggering a thorough overhaul of the procurement process.

Enhance supplier landscape visibility 

Spendkey helped the customer discover 62 suppliers contracted in a specific sub-category, incurring a cost of £1.6m.

Gain visibility into
tail spend

Spendkey highlighted that 30% of the overall spending comprised transactions under £10k each.

Achieve significant cost savings

Revealed additional optimisation opportunities based on the analysis of the preceding 12-month expenditure.

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Project Name
Project description
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£6m

Shadow spend identified

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100%

Tail Spend visibility

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£427k

Savings identified from supplier rationalisation
 

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£4.4m

Savings identified from analysis of the preceding  12-month expenditure

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Key takeaway

  • Spendkey’s rigorous IT spend analysis program helped the customer improve its IT agility, enabling them to shift their operating model to a services company for sustainable long-term growth.

Find out how your organisation can:

  • Get complete visibility and control over technology spend.

  • Identify and minimise shadow IT spend.

  • Optimise its technology stack with clear visibility into the technology landscape.

  • Track IT spend against budgets and identify savings opportunities to fast-track digital transformation within limited budgets.

  • Get granular level visibility into your supplier landscape.

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Key takeaway
Working with the best

The program has helped us understand and define ‘what good looks like.’ We have seen significant business benefits, most notably IT agility, to enable us to shift our operating model to being a services company for long-term sustainable growth

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Global Commercial Vehicle Manufacturer
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Spendkey Wins the Start-Up Award at Global Procurement & Supply Chain Awards 2024  

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