Generally, suppliers have an edge on information over their customers: They know exactly how high their production costs are.
Customers on the other hand do not have this insight. This lack of transparency forces companies to invest both time and money in order to repeatedly request items. As a result, projects get delayed and costs rise. Data-Driven Procurement allows the procurement to know production costs even before the supplier does!
Should suppliers have an edge on information?
All products come with a price. Procurement managers know very well how different these prices can be. There is a natural conflict between procurement aiming for the lowest price and suppliers trying to maximize their margin. But why should suppliers have an advantage in regard to defining prices? If your company orders more than 50 different items of the same commodity group from ONE supplier, then you know the cost structure of that supplier very well.
Savings of 12-15% are realistic
By using Data-Driven Procurement, our customers generate detailed analyses of their suppliers’ cost structure. In order to create this transparency, data and algorithms come in focus. Our award-winning software PSI - predicitve saving identifier delivers both.
When using data, there is ONE golden rule: The quality of the input defines the quality of the output. Hence, our software PSI generates the perfect data itself by analysing the product descriptive data of each item and uses its direct connection to our Data-Driven Engine. We are well equipped: Our Data-Driven Engine analyses 10.000 articles in a day creating the technical data for the PSI.
Fully automated pooling
The possibility of automated pooling of thousands of items, saves our customers a six-figure amount. Time savings not even included yet. Data-Driven Procurement is based on many detailed analyses. These calculate the suppliers’ cost structures at the push of a button. It has never been easier to know costs before your supplier does!