Why every company should switch to active procurement management!
To effectively optimize product and service costs, modern procurement management and detailed cost analyses are essential. This includes identifying even minor savings opportunities and benchmarking suppliers' performance and costs across international locations.
Effective procurement management leads to:
Future-proof and sustainable development of suppliers
Rigorous analysis of pricing and price adjustments
More effective and successful negotiation strategies
The foundation for this is a dynamic cost management system that relies on powerful IT support. Our Softwarevalueforce4.1provides all the necessary tools: It is not only compatible with internal corporate controlling and calculation methods, but also creates the basis for a high-performance procurement management.
1.
Examination / Is the price warranted?
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Prices are often independent of actual costs and are solely oriented towards the buyer's assessment possibilities.
2.
Examination / Am I cross-subsidizing other suppliers' products?
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Each supplier has products with a different profit or loss contribution. On which side is my product?
3. Examination / What cost savings can be achieved with my procurement product?
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Suppliers are eager to implement cost-saving suggestions, but they won't reveal the exact amount they've saved.
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Cost calculations using a machine hour rate always calculate with an unacceptable level of accuracy.
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Costs and cost drivers are passed on to customers indiscriminately. This needs to be reviewed.
4.
Examination / Is the stated price increase warranted?
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Suppliers consistently propose unreasonably high price increases.
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Price increases are often just estimated values with an excessively high safety and risk factor.
5.
Examination / Which production location offers what cost benefit?
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There is a 23-40% cost difference between global production sites.
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Suppliers from low-wage countries are aware of their cost advantage but only pass on a reduced portion of it to customers.
6.
Examination / Which supplier offers what cost reduction potential?
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Excessive general expenses, /
Excessive energy expenses / Low production capacity, Underutilization /
Low sales, Decreased revenue / Manufacturing disadvantages
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Even with the same price from multiple suppliers, the cost breakdown is always different. Identifying potential savings.
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Leverage targeted supplier development as a success factor.
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Supplier workshops are of central importance. The savings potential should always be calculated independently.
Our software, valueforce 4.1, provides all the necessary prerequisites.
Furthermore, it presents two core choices:
A comprehensive calculation and analysis software for profound cost studies.
A simple calculation that enables fast and yet precise price and cost analyses.
With valueforce 4.1 your procurement management will be more efficient and targeted than ever before.
