Effective cost savings with H&Z's Supplier Day Negotiation Strategy
H&Z's Supplier Days stand out as a potent negotiation strategy, instantly influencing the P&L. Typically, our approach yields swift savings in the ballpark of 4-6%.
To rapidly secure effective savings, the emphasis should be on engaging with existing suppliers, with negotiation serving as the primary lever. Supplier days provide an ideal platform for conducting a series of highly effective negotiations within a compressed time frame.
Imagine taking all your main suppliers and putting them into high-intensity, rapid and thoroughly prepared, parallel negotiations. A Supplier Day methodology does exactly that, bringing competition, intensity and leading-edge negotiation excellence into an event format that delivers a rapid P&L impact that is both deep and wide.
Emerging from a period of high inflation and cost volatility, Supplier Days serve as the perfect tool for mitigating cost increases and renegotiating commercial terms. This approach allows companies to adapt and realign their procurement strategies effectively.
Momentum & preparation are key success factors
Drawing from a rich legacy of 25 years and over 250 successful Supplier Days, we recognize the essence of momentum and detailed groundwork for these events. Whilst the focus is on the “event” of the actual Supplier Day, the key success factor is thorough preparation, planning and execution of the process from supplier conditioning through the agreement of new commercial terms.
5 steps to Supplier Day success
- Supplier selection: Based on customized criteria, we work with you to carefully select suppliers and coordinate the invitation to the event
- Preparation of the negotiation strategy: In preparation for the negotiations, our H&Z experts compile supplier dossiers, conduct benchmarks, linear performance pricing analyses and collect relevant market information. On this basis, we jointly define the objectives of the negotiation and define the thrusts and arguments for a win-win situation
- Creation and training of negotiating teams: Together with you, we define the necessary participants from procurement and interfaces and determine their roles. The simulation of the negotiation is also part of the optimal preparation.
- Organization of the event: Whether in the selection of the location, schedule or supporting program. You can also benefit from our experience in the administrative tasks
- Conducting the supplier day & accompanying the negotiations: Together with your team, we design the supplier day. Our experienced negotiation experts actively support you during the negotiations and prepare the results for management.
If you need a short-term savings boost or are looking to recover cost increases and reset commercial terms with existing suppliers, please contact us to discuss how Supplier Days can deliver your objectives in one pass.
Nicolas Chlebusch
