Initial Situation
The strategic procurement team of an industrial company has negotiated framework agreements with 15 key vendors at 5-15% below list prices. Yet employees regularly order from non-contracted vendors – partly from habit, partly from ignorance. Only 60% of orders go through framework agreements. The wasted savings potential is estimated at €180,000/year.
Your Solution with simple system
- Assortment Restrictions: Contract vendors prioritized, non-contract vendors restricted
- Article Information: Contract articles marked with special "Framework Agreement" badge
- Unit Price Limits: Orders above contract price automatically blocked
- Approval Processes: Order from non-contract vendor requires justification + approval
Result: Framework agreement adoption rises from 60% to 95%. Negotiated terms are actually utilized.
Your Benefit
- Time savings: Automatic framework agreement enforcement eliminates manual monitoring
- EBIT impact: +€105,000/year (10% price advantage × 35% more contract usage × €3M spend)