Market data in purchasing: fair purchase prices and strategic supplier relationships

Extract from the case study:

Ensuring competitive purchase prices is one way Vonovia keeps internal costs low so that it can continue to offer its tenants attractive rents going forward. Until recently, the company’s purchasing department relied on long-term supplier contracts to procure indirect materials. The problem was that the long contract terms failed to take major price fluctuations in the market into account, for example due to supply bottlenecks.

Random price comparisons with online stores left no doubt that the contracts were a bet on market developments, which time and again led to dissatisfaction – on both sides.

Vonovia started searching for an alternative that would allow them to benefit from favorable market prices and improve their supplier relationships.

“Annual contracts were a high-risk bet for us. Thanks to XPLN’s data, we benefit from current and fair market prices in agile purchasing without sacrificing the advantages of long-standing supplier relationships.”
– Dennis Westkamp, Head of Sourcing Indirects at Vonovia

Read this case study to learn how Vonovia uses automated price monitoring to get a better picture of the market much faster, achieve a 5-digit ROI, and build strategic supplier relationships at the same time.

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