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Category Insights

Aligning with the market dynamics and industry best practices, to ensure that the category strategies are not only up to date with industry best practices but also reflects your organization specific goals, is crucial to enable a sustaining and effective category strategy.

SMEs Network

We have developed our own in-house suppliers database with thousands of curated suppliers for hundreds of different spend categories and subcategories. This robust database, which is continuously expanding, acts as a core for the supplier landscape analysis. 

Robust Methodology

Our methodology for category insights are not only inspired by the industry success stories but also by the failures. Each insight coming from our side are vetted by the sourcing professionals, category experts and industry SMEs ensuring that there is neither any gap nor any irrelevant fillers.

Data and Insights Driven

We understand the criticality of selecting the right sourcing strategies whether it is to select a specific supplier segment or it is for deciding on the sourcing models. Our insights are evidence and logic based where we also provide the key lever to monitor, assess and control the outcomes.

Transparency

We have observed that market is filled with the advisers and intelligence making it difficult to assess to choose from different strategies. Our team is trained to provide a holistic view and narrowing it down to most appropriate and aligned strategy recommendations.

Key Services

Actionable

Quick TAT

Relevant

Business Focus

Guaranteed Outcome

Case Studies

Sourcing Strategy for Employee Background Verification

A BFSI client has been reviewing their category strategy for employee background verification services to identify cost saving opportunities and to rationalize the supply base. The client reached out to Argha team to understand the available options for sourcing strategies, engagement model and commercial terms to optimize the spend.

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The team conducted a detailed analysis of the market by speaking with different service providers and large customers within our network to evaluate different sourcing models. Below were the key findings.

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Sourcing Models:

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  • Sole Sourcing:  This model has lesser penetration but is growing recently. This model offers lean supply base, low management complexity, development of global category strategies and volume discounts.

  • Multiple Sourcing:  This model is followed by companies particularly in the case if a single supplier cannot cater to all the countries or there are strong local suppliers available in the some of the regions.

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Commercial Models:

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  • Transaction Based Pricing: This pricing model is also known as A la carte pricing. This model is suitable for small clients with lesser number of checks required.

  • Fixed Pricing: This is also known as package pricing in which service provider and client agree on a fixed price for a set of background checks. This model is suitable for the countries/regions with multiple checks required.

  • Hybrid Pricing: This model is also known as blended pricing. Under this model, service provider and client agree on a fixed price for a bundle of most common checks and rate cards for rest of the checks.

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Post due diligence, Argha team had been able to recommend multiple sourcing model with a mix of transaction and hybrid pricing models to our BFSI client for an optimized spend.

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Our team also conducted a deep-dive analysis to identify following cost saving opportunities for the client.

  • Reducing the total number of background checks by assessing the industry best practices and relevant laws for different countries.

  • Segmenting the types of background checks and engaging low cost supplier types for each segments.

  • Centralized sourcing model to leverage volume discounts

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"We were struggling to find the right suppliers for our MRO supplies owing to ongoing challenges with the incumbents because of location specific constraints. Argha Insights directed us to a totally new set of suppliers which are highly aligned to our requirements."

Category Manager, Automotive Component Manufacturer

Talk to our experts

Whether you are planning to review existing category strategy or developing a sourcing strategy for a new category, our team would assist you in every steps. Our team has years of expertise in category strategy development ensuring a full alignment with business goals.

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