E-Commerce Case Study
Clarative can enable a sizable reduction in wasted category spend for medium and large E-Commerce companies.
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Challenge
Category Managers often lack visibility into their supplier agreements. It is difficult to track payment terms, rebates, delivery terms, and supplier relationships over time.
Solution
Clarative implements a comprehensive contract and spend analytics solution to streamline company’s procurement processes and improve supplier relationships. Our initiatives often focus on a few key areas:
Analyzing Discount & Rebate Utilization
Clarative extracts data on various discounts and rebates across all suppliers and SKUs. This analysis often reveals that only 50-70% of available freight rebates were being utilized, and early pay discounts were often missed due to payment delays. By addressing these issues, companies often save millions.
Tracking Expiring Contracts and Renegotiations
Clarative can track and flag contracts nearing expiration. This proactive approach allows procurement teams to initiate renegotiations well in advance, resulting in more favorable terms. Clarative can further help prepare for renegotiation by generating supplier relationship and market reports.
Visualizing Supplier 360
Clarative provides a holistic view of each supplier relationship, including performance metrics, contract terms, and historical data. This visualization helps identify suppliers consistently delivering high-quality products ahead of schedule, suggesting action towards an expanded partnership and preferential pricing. Clarative can also flag underperforming suppliers, leading to greater customer trust and more leverage during negotiation.
Automating Report Generation
Clarative automates the generation of category spend reports, reducing manual effort by 75% and enabling real-time decision-making. This automation can highlight opportunities for consolidation, diversification, and risk management.
The Impact
Customers using Clarative to manage their category relationships see several percentage points in reduced spend and greater visibility in the negotiation lifecycle.
