A national distributor of energy
We already followed the development of raw materials we buy, but we never had a structured approach to follow these developments. I was busy with a tender for buying cables, for which we contacted 4 different suppliers. We aimed to extend the contracts with our suppliers for 1 year. One of the suppliers pushed us for a serious price increase. Our challenge was to cope with that. We started working with the WTP should costing software.
With the WTP should cost software we now have easy access to all of this data. Since then it became easy for us to see what is going on with all the different raw materials. Since we have all these data based insights I confronted this particular supplier with a WTP report and received a rather special and extraordinary reaction from him. He said to me: “Well, I am not particularly sure what’s going on, but what you are showing me appears to be fairly logical”. The result of this negotiation was that the price increase practically disappeared. That saved us a six-digit amount at the time. Without factual data based evidence I never would have achieved this result. Personally, I find it comforting to negotiate with fact-based information that WTP provides me, as it provides me with additional confidence.
BOUWMAAT is a large Dutch chain of stores selling construction and DIY related articles. The Challenge To be fair, we never really thought about the composition of a product. We know roughly what materials are of importance, but what the impact on a price is, was relatively unknown. I had the intention of getting the […]Discover more
Fetim is a wholesaler, dedicated to improve peoples houses. They sell decorative and constructive materials all over the world. The Challenge The main reason for us to start using WTP was because we found it challenging to reach a sufficient margin. Furthermore, the traditional way of negotiating was no longer effective. The lack of well-presented […]Discover more
HEMA has over 750 stores in 9 different countries, selling household articles and clothing. The Challenge At HEMA the challenge was that we sell a wide range of different products. That is food, non-food and clothing. It is impossible to have in-depth knowledge about every single product, so our buyers and category managers can use […]Discover more