A listed company in telecom
Read about this case.
When it concerns purchasing, we are more orientated on the technical aspect and therefore think more in specifications than in materials. I had wondered beforehand if cost price simulations would be a good fit for us as we subcontract a lot. But the insights these simulations provide are special.
The best experience we have had was with a junction box that had our own logo on it. We paid 10 times the cost price than the one WTP simulated for us and we did not take the result seriously the first-time round. Regardless of this we still shared the result with our supplier. What surprised us was that the supplier recognised the price WTP had given us, but he explained that he had had to invest in a new cast for our logo. Because we had a contract for the duration of a year, he had to write-off the cast over a one-year period. Since we’ve increased the duration of the contract, he can write off the cast over a much longer period and the price for us lowered enormously. Our investment in WTP was earned back in this one specific case. The exact outcome of your calculation isn’t really that important, it’s much more about the insights you get by substantively managing your products. WTP has provided
excitement, and that is crucial within the purchasing sector.
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