You are looking for new approaches to save on procurement costs

»Yearly price negotiations with our suppliers get tougher and tougher. Our suppliers increase prices. Our management, however, confronts us with ever more challenging saving targets in procurement. How do we best respond?«

Solution

You are aiming at increasing competition for sourcing of complex parts or services

»The parts we use in our products are very complicated. How can we compare different suppliers let alone select the supplier with the best price-quality ratio?«

Solution

You are negotiating with oligopolistic / monopolistic suppliers

»We are continually negotiating with a very limited number of suppliers or even a single supplier. Our R&D department tells us that there is no alternative and that we need to cope with this situation. Is there any way to increase our negotiation power?«

Solution

You need to prepare for an auction or a tender with fixed rules or an auction

»Procurement of our customers confronts our sales force more and more with new negotiating formats, for example auctions. Because firm negotiation rules apply, our sales force loses its influence on the awarding decision of our client. How do we best deal with that?«

Solution

You need to integrate cross-functional expertise into your decision-making

»We encourage the various departments in our company to express their particular expertise. But then, how shall we trade off competing assessments and get to a rational awarding decision?«

Solution

Economic Engineering, Enhanced Negotiation Concept, ENC, Design to Competition, Supplier Equalization Coefficient, SEC, Supplier Comparison Value, SCV