Basis for negotiation for a plastic part

Negotiation success of EUR 60,000 after cost estimate with C3 Cost Competence Center

Initial situation & task

  • The purchasing department needs information in order to obtain convincing arguments for savings in negotiations with the supplier in three days.
  • Internally, there are no experts in the field
  • Obtaining comparative quotations is not feasible in terms of time

Approach

  • Known information entered into the 4cost web portal for online cost estimation (C3 Cost Competence Center)
  • Order for quick estimation triggered
  • After 24 hours, results received as a report including detailed output
  • Negotiated with the supplier on this basis

Results

  • During the negotiation, a saving of over EUR 60,000 was achieved for the first annual call-off

Negotiation leverage overheads (overhead and margin)

Negotiation success of 3 x 20 % price reduction after overhead cost analysis with 4cost

Initial situation & task

  • The purchasing department wants to verify the price of a supplier
  • In addition to the parametric analysis of manufacturing costs, an overhead cost analysis is to be carried out
  • Purchasing wants to have two levers (arguments) of “cost optimisation” in hand

Approach

  • Manufacturing costs parametrically evaluated with 4cost-aces
  • Overhead costs parametrically evaluated with 4cost-scenarioanalyser
  • Supplier confronted with results of 4cost
  • High potential identified

Results

  • 3-year contract signed with an annual saving of 20 %