The Price Is Right? – the Challenge for Procurement

5th October 2017

When we talk to procurement professionals we often pose the following questions:

How much time do you dedicate to review new pricing? How do you know where to focus your precious time, whilst balancing the everyday demands of being a category or procurement manager? Do you ever fully understand what the impact of a price change could be for your Organisation – it may be on average 3% but what does that really mean in terms of what we purchase? How much control do you really have over the price increases before they hit your end users?

It can often be hard to dedicate the time to fully review and understand new prices proposed by Suppliers, especially at a product level. Ad hoc changes may be manageable whilst managing day to day responsibilities but contract renewals usually occur at the same time of year which can reduce the time you can dedicate per supplier or framework agreement.

How can Science Warehouse Help?

Control: Our system will capture any price changes submitted by a supplier at a gateway for approval, giving you complete control over what price changes can be applied to products being ordered through our Marketplace. This also applies to new products which cannot enter our Marketplace until they have had your approval.

Focus: Our analytics provide an overview of the impact of a price change based on your spend with a supplier over the last 12 months, enabling you to focus your time on the highest impact price changes and prepare for negotiations with suppliers.

Impact: We do the hard work for you, using our analytics we provide order value impact at a line level. A product may have increased by 20% in price but what does this mean for your Organisation? How many of these products have been purchased in the last 12 months? Enabling you to focus on the changes that will have the biggest impact and not worry about other areas that have little impact.

Time: Automating analysis that would otherwise be manual or across multiple data sources gives you more time to focus on managing price changes and leading negotiations with complete visibility of what changes are being made and what the impact will be.

It is not all about the Buyers – Helping Buyers assess price changes more quickly benefits Suppliers who within the Science Warehouse system get to see the impact analysis of their price change BEFORE it is submitted to a Buyer and the time taken to sign off prices can be significantly reduced. Additionally, you can release new pricing for items that are approved whilst others are still being reviewed so that you can receive orders on your new pricing faster (if your finance system is able to support this).

For more information on how we can help your business, download our Buyer Solutions Handbook below.

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