The Smart Cube is the procurement intelligence and analytics partner for a leading global steel manufacturer

Business challenge

A leading global steel manufacturer—with billions of spend under management— wanted category intelligence and analytics support to identify, decode and qualify procurement strategies that create competitive advantage

The Smart Cube solution

The Smart Cube works as an extended arm of the client’s European procurement function, with a flexible delivery model involving a mix of on-site and offshore analysts, engaging with key stakeholders including CPOs, category heads and procurement managers.

Support Areas

• Category Strategy Development
• Spend Profiling and Categorisation
• Negotiation Support
• Supply Market Analysis
• Cost Modelling
• Best Practices Assessment
• Supplier Performance and Risk Assessment
• Competitor Intelligence
• Technology Assessment
• Commodity Analysis and Tracking
• eAuctions

Key features of the relationship

Decision-making and negotiation support

• Decision-Making Support: Procurement analytics and category spend insights for critical client needs
• Negotiation Support: Support category heads during negotiation rounds to present fact-based arguments and develop comprehensive category strategies
• Transformation Support: Accelerating saving strategies across key transformation programmes, with analytical support to identify opportunities, validate savings, analyse spend, etc

External market intelligence support

• Medium to Long Term Strategy Support: Pooled FTEs provide in-depth category market research on a proactive basis
• Commodity Research: Track 70–80 commodities and present qualitative insights into the future price forecasts on an online portal

Value delivered

By partnering with The Smart Cube, the client was able to:

• Attain savings of £2m in a commodity supplier negotiation round
• Receive discounts worth 30-40% over the original prices by engaging with new suppliers through eAuctions
• Achieve savings worth 10-15% through external market intelligence and negotiation support in select categories
• Attain higher focus on strategic activities (rather than tactical tasks) while still maintaining a lean organisation
• Gain increased visibility and control on the overall spend of the organisation
• Develop hedging strategies to tackle price volatility