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What they wanted
After a buy & build phase, the newly combined business had a significant procurement spend. With more than 1500 suppliers it was spread out quite substantially. Our customer wanted us to identify the combined procurement spend per category, agree with the business on a procurement strategy, prepare and deliver negotiations.
What we did
We started by creating a joint database for all procurement spend incl. the underlying drivers (# of cases, prices, etc.). In workshops with the business, we agreed on preferred suppliers and a desired outcome. We then prepared the negotiation documents and delivered the negotiations. We also implemented a scoring mechanism in the monitoring that allows our customer to constantly assess quality and prices of suppliers which triggers potential renegotiations.
What we achieved
The entire project took 3 months before we started with the implementation. Given the size of the suppliers negotiations took 6 months and we were able to reduce 95% of the supplier spend to 530 suppliers. The business accepted all suppliers that we renegotiated the contracts with. We furthermore introduced a new data driven way of working that allows the procurement team to improve the procurement spend on an ongoing basis.
"The impulssum team quickly managed to get a good grasp of our complex organization, focussing on what's really important, and created the frameworks and forums to share what was required to take the next step.” – Global Product Manager Services
"Impulssum has quickly become part of our team, and managed to pragmatically introduce a new dynamic price quotation mechanism based on key value drivers." – General Manager
"Together with Impulssum, we built a full blueprint for our strategic partnerships work including a large repository of resources for Hive and our strategic partners which we have already put to good use. Also, while still building up the Alliances team, the team from Impulssum acted as my trusted extension arm on all business development topics and provided fantastic allround support." – VP Alliances and GTM