Initial Situation
A trading company negotiates 50 framework agreements annually. Negotiations are based on gut feeling and scattered quotes. Historical price data is dispersed in email inboxes. Procurement cannot prove what prices were achieved in the past. Vendors exploit the information asymmetry for inflated prices.
Your Solution with simple system
- RFQ module digitizes all quote requests centrally
- Historical quote prices are automatically stored
- Comparison matrix provides transparent market prices for each product category
- During new negotiations, historical data is used as benchmark
- Export function provides data for negotiation meetings
- Vendor performance data supplements price negotiation
Result: Procurement negotiates with market price data instead of gut feeling. Average price improvement of 14% on renegotiations.
Your Benefit
- Time savings: 50% shorter negotiation preparation through data availability
- EBIT impact: +€420,000/year (14% price improvement on €3M) + €150,000/year (defended against price increases) = +€570,000/year
