Initial Situation
A corporation negotiates 30 framework agreements annually with a total volume of €8 million. The procurement department has no consolidated market price data as a negotiation basis. Vendors set the prices, procurement only reacts. Price increase demands cannot be refuted with market data.
Your Solution with simple system
- Before every framework agreement negotiation, RFQs are sent to 5-8 alternative vendors
- The comparison matrix provides current market prices as benchmark
- Historical RFQ data shows price trends over time
- Export of market data as negotiation documentation
- Award decision is data-driven and documented
- Result is saved as new benchmark
Result: Average price improvement of 9% on framework agreement negotiations. Price increase demands are refuted with data.
Your Benefit
- Time savings: Data-driven negotiations instead of weeks of manual research
- EBIT impact: +€720,000/year (9% on €8M) + €150,000/year (defended against price increases) = +€870,000/year
