Banking and Financial Service Industries
As we know in today’s scenario, the global banking and financial services industry has undergone tremendous change. The industry in general is moving towards cost cutting thereby downsizing of the work forces which in return puts on the pressure for meeting the deadlines.
Banking and Financial organizations employ four main levers for optimizing procurement costs and achieving cost reductions. These are:
– Price management means achieving reduction through pricing, e.g. contract re-negotiations or competitive bidding.
– Vendor consolidation reduces the number of vendors across business units and geographies and focuses on selecting “preferred suppliers” per spend category.
– Demand consolidation is achieved through increased coordination and integration of buying power across the organization (one face to suppliers) and reducing uncontrolled ad-hoc purchases (known as maverick spend).
– Demand optimization most often takes the form of curtailing spend by, for example, temporarily freezing non-critical purchases or opting for limited or fewer product and service requirements.
At GainEdge we have the necessary expertise and resource through which we can derive cost savings by operating and handling the above four levers appropriately.