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Central purchasing: data analysis for better negotiations

Posted by Andrew Butt on February 12, 2018 10:48:15

In order to prepare for major negotiations with suppliers, businesses often have to extract historical data from multiple systems: buying groups need information from their members' systems, newly merged businesses need information from different parts of the group. We have seen cases where managing large volumes of transactions with (largely) manual processes, such as spreadsheets, can have a detrimental impact on profitability, cash flow, supplier relationships and ultimately the performance of the buying group or company.

The best solution is one that automates data consolidation and provides tools to swiftly analyse purchase history and model the impact of proposed changes to deal terms. This information and analysis provides a solid basis for better negotiations and better margins.

XLVets is a community of independently-owned, progressive veterinary practices that work together to achieve the highest standards of veterinary care.

They needed to gather information across 50 different companies and multiple nationwide wholesalers.  Most systems can export data via spreadsheets, but they were finding that consolidating spreadsheet data that isn't formatted in a consistent way can be labour-intensive and subject to error. 

Added to that, a lot of their deals involved complex rebate calculations and as well as solving their consolidation problems, they wanted to automate the process to improve their rebate claims processing.

But, whilst XLVets were looking for a solution to simplify the admin, their ultimate goal was to find a way of working with a diverse set of data to negotiate better deals and achieve even better margins for all members of their community.

Enable's software addressed all their issues by providing:

  • a mechanism for consolidating data from disparate systems
  • a means of analysing that data for (better) future deal negotiations
  • a system for ensuring rebate claims are never missed
  • the ability to add a new member system with ease

Andrew Curwen, CEO of XLVets, spoke about his experiences in a webinar.

Listen in to learn more about the solution we provided, and the financial benefits gained by this buying group.

Here are some of the companies who attended the webinar:

  • Staples
  • FPS Distribution
  • Simplify IT
  • KEW Electrical
  • Exertis
  • Espo

Questions answered during the webinar included:

  • How easy was it to get suppliers / members to buy into using DealTrack?
  • DealTrack appears to be focused on Rebates coming in but can it also be used for Rebates we pay out to customers?
  • Is this more appropriate for a buying group rather than members of the group?
  • The examples given seem to focus primarily on purchase data - have you examples where this is not available (i.e. where customers order e.g. services, from suppliers)?
  • What were the top 3 things needed to initiate the implementation project?

Find out the answers to the above and more by listening to the full webinar recording:

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Topics: Client Stories, Procurement, Industry Sector: Buying Groups, Mergers & Aquisitions, Central Purchasing