One of the oldest retailers in the Netherlands, a real family business, used the WTP application in early 2022 to tender various seasonal products in December. This involved various delicacies. The client was looking for the most competitive price, but the available product information was also important. In addition, the client had several other elements that were ultimately important for the choice of supplier.
Approach with WTP
The advantage of the WTP application in a tender is that you can immediately verify all the information that you can request from the supplier, based on the supplier’s should-cost capability.
This is also how the customer approached this. During the tender, the supplier requested all information about the product. Think of the raw materials that are relevant and in which country the product (and the raw materials) are produced.
As this information slowly trickled in, our WTP client processed the information in the WTP application. This gave him several insights. For example, the potential supplier was calculating different raw material prices than WTP indicated.
The client asked if the sources of the raw material prices could be made available, in this way all information was verified.
The fact that the client can enter the discussion with this information, allows him to talk at the same level.
Because the customer was able to negotiate with the supplier at a high level and in detail, the customer still managed to achieve a saving of 3% after the tender.
Compared to a previous tender in this product range, the customer realized a saving of 12%. This percentage amounts to several thousand euros.