Kramp

Kramp is a technical wholesaler for the agricultural sector. Over the past 70 years they have grown from a family business to become the largest supplier of parts and accessories for the agricultural sector throughout Europe. Kramp is a multinational company active in 24 countries.

Albert Wolbrink is Manager Procurement at Kramp. Kramp’s procurement activities are centralized, which means that they have a procurement spend of many hundreds of millions.

Albert actively remembers when he was approached by Robert Driessen about 6 years ago to talk about What’s the Price. At the time, the software tool was still in its infancy and growing fast. Albert was intrigued by the top-down approach to cost price modeling.

“We started working with WTP right then and there and have thus seen the tool undergo tremendous development.”

Motivation
In 2020, Kramp carried out a major organizational change in the procurement department. We strengthened the entire procurement team and also appointed a Procurement Director. The team is now about 40 people. In this process we incorporated WTP as a tool in the toolbox of all buyers.

One challenge in this process was getting all the Supplier Managers on board. Buynamics played a large role in this by training employees and educating key users. Under their guidance, in 6 months’ time, we introduced a large number of reference product s into the software.

Results
The Supplier Managers now clearly see that the output of the software is direction, not perfection. And this is fine, we now use it exactly how it’s intended, for better negotiations. we really dare to challenge the supplier on the price they quote. This results in a dialogue about the price components. The transparency in the talks with the supplier have increased, which contributes to more equal conversation. This gives a boost in self-confidence during negotiations.

Because WTP is based on big data, it also helps us to internally service the local Sales Managers in the 24 countries we operate in. And also to parry arguments they give when they think they can buy it cheaper or better locally. WTP ensures that we are well prepared in these cases.

In the current market situation, in which delivery times are under pressure and the prices of commodities are rising at the same time, it is inconvenient that you cannot yet extract any forecasts from WTP. But I know that this is being worked on because the software is developing fast. At the same time, WTP also helps you to be on the ball.

It’s difficult to give a very concrete indication of the results of using WTP. What we can see now, after two years of intensive use, is that the price we pay and the calculated should cost price in WTP are closer together. And I can confidently say that the return on investment on the licensing for the tool is easily obtained. Which of course is no reason for WTP to start raising the price, haha.

“WTP is now one of the most important tools we have for a successful negotiation!”