Fact-Based Supplier Negotiations

Take Control of Supplier Negotiations

Getting the most favorable terms in supplier negotiations requires you to be armed with comprehensive and meaningful data. PRGX can help you understand precisely what you are paying across categories and geographies to inform negotiations and help reduce COGS.

Uncover Facts to Improve Supplier Negotiations

Effective COGS negotiations have a significant bottom-line impact. PRGX can help improve negotiating strategy by analyzing current contracts, costs and terms to make sure you are optimizing your purchasing power and payment process. We’ll take a comprehensive approach, with particular focus on areas that produce the greatest leverage.

The Challenges of Getting to Fact-Based Supplier Negotiations

Many Moving Parts

With the complexity of purchasing across categories, geographies and banners, it’s common for data and terms to get cumbersome and unwieldy.

Changing Supplier Attributes

When suppliers change model numbers, UPCs or other product attributes, the changes aren’t always appropriately captured in all of your purchasing systems.

Multiple Purchasing Groups

Large organizations often have different purchasing groups for each banner or for different geographies, further complicating accurate data capture.

PRGX Solutions

True Net Cost

We correlate and aggregate disparate data sources and use our knowledge of supplier deals, deal systems and unstructured data to calculate the front- and back-end supplier funding and margin at the item level. We’ll help analyze profitability by product, category and supplier and use these insights to negotiate reductions in COGS.

Global Product Aggregation

It’s not unusual for costs on the same product to vary three to five percent between regions within a single retail organization. Even small variances can translate into millions of dollars in lost profit. We use Global Product Aggregation with product-code-matching algorithms to help identify “quick hit” savings opportunities and be better prepared for supplier negotiations.

M&A Services

Bringing together separate purchasing organizations presents significant opportunity for synergy and negotiating power. PRGX can provide in-depth analysis of both systems, rationalizing data from disparate and disconnected systems to negotiate the best prices and terms across the new organization.

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