Initial Situation
A mid-sized company works with over 200 active vendors for indirect needs. Many vendors deliver only small volumes. Administration costs disproportionate time. Prices are rarely challenged as the effort for alternative quotes is too high. Procurement estimates that 30% of vendors could be eliminated without endangering supply security.
Your Solution with simple system
- Systematic RFQs for every product category with 5-8 vendors
- Comparison matrix identifies the top-performing vendors
- Historical data shows price-performance trends per vendor
- Top vendors receive higher volumes – better terms
- Weak vendors are systematically replaced by better ones
- Consolidated volume as negotiation basis for framework agreements
Result: Vendor count drops by 35%. Negotiated terms improve by 12%. Administrative effort drops by 40%.
Your Benefit
- Time savings: 40% less administrative effort through 70 fewer vendors
- EBIT impact: +€180,000/year (12% consolidation on €1.5M) + €35,000/year (administrative costs) = +€215,000/year
