Case Study
How The American Red Cross Gained Spend Visibility
Industry
Non-profit
Website
At a Glance
Key Takeaway
The American Red Cross gained full spend visibility to drive strategic sourcing and responsible procurement decisions.
Core Challenges
Limited transparency into third-party spend hindered efforts to manage risk and optimize supplier relationships.
Benefits
SpendHQ enabled data-driven insights, helping the Red Cross streamline sourcing, reduce costs, and improve compliance.
“After benchmarking spend analytic tools used across all industries, the American Red Cross selected SpendHQ based on our evaluation of their practitioner-built tool and practical approach.”
Overview
SpendHQ is providing enterprise-level spend visibility for one of the most recognized nonprofit brands in the U.S., the American Red Cross. By implementing the SpendHQ spend analytics solution, the American Red Cross can confidently identify sourcing opportunities and meet cost optimization goals.
Situation
Their Chief Procurement Officer and head of supply chain said: “After benchmarking spend analytic tools used across all industries, the American Red Cross selected SpendHQ based on our evaluation of their practitioner-built tool and practical approach.”
During a Spend Insights podcast, he shares his perspective on the role of procurement on overall business performance, the importance of spend analysis, and how it’s directly impacted their ability to create “fact-based” visibility while promoting supplier innovation and mitigating third-party risk.
Listen to the Podcast
In this 20-minute podcast, VP Supply Chain and CPO at the American Red Cross, shares insights around the importance of spend analysis and how it’s directly impacted their ability to create “fact-based” visibility while promoting supplier innovation and mitigating third-party risk. Listen Now
Solution
They have about $3 billion in revenue, and their total addressable third-party supplier spend is close to 45% of their revenue that they want to manage.
He says it starts with business imperatives, which for them includes a cost gap that they need to close. They set targets with the business. “What gets measured gets managed.” They use SpendHQ to build with business partners more robust category strategies by looking at the data.
“We are trying to make sure that of the dollars that we have, we are being good stewards of our donor dollars as well as the money that we make in our hospital business and our training business.”
He praises the excellence of SpendHQ’s spend data taxonomy and classification to give them a solid foundation for the analysis and planning.
