Procurement Renegotiations

Our customer was looking for a shorter-term improvement of their procurement spend and reached out to us.

The process needed to be implemented quickly and reducing the cost was more important than other topics given pressure on the budget.

We pragmatically collected the procurement spend and identified the bigger spend buckets/ suppliers.  The negotiation strategy was based on existing suppliers only (no switching) and we benchmarked spend with internal and external data as main argument for the negotiations. We then started the negotiations within 2 months after the start of the project and were able to quickly create tangible in-year improvements.

Our project delivered the targeted purchasing spend improvements in the set ambitious timeframe. In addition, we had no impact on the business as we didn’t switch any provider.

After this project, we have been hired for a follow-up project to improve the Procurement capabilities in-house more structurally.