Initial Situation
A trading company with 250 employees orders 800 line items monthly. Spot checks reveal: 15% of ordered articles are 20-50% above available market price. Employees don't actively compare, order from habit with the same vendor or choose the first search result. Estimated annual excess cost from overpriced individual orders: €95,000.
Your Solution with simple system
- Unit Price Limits: Maximum article prices set per category
- Orders above threshold automatically blocked with reference to cheaper alternatives
- Marketplace Search: Automatic price comparison shows cheapest provider
- Approval Process: Price overage requires justification and approval
Result: Overpriced orders drop from 15% to under 2%. Average price improvement of 8% on affected items.
Your Benefit
- Time savings: Automatic price rules eliminate manual review
- EBIT impact: +€150,000/year (13% reduction × 800 items × avg. €120)