Evaluating Tenders with WTP
A Dutch retailer used WTP during a tender process for seasonal products to evaluate supplier offers based on facts rather than assumptions. By validating raw material, production, and cost data, the company gained stronger negotiating power and deeper cost insights. This enabled more informed supplier selection and negotiations. As a result, the retailer achieved an additional 3% saving after the tender and a total saving of 12% compared to a previous tender.
Introduction
One of the oldest retailers in the Netherlands, a real family business, used the WTP application early this year (2022) to tender various seasonal products in the December month. This involved various delicacies. The client was looking for the most
competitive price, but the available product information was also important. In addition, the client had several other elements that were ultimately important for the choice of
supplier.
Approach with WTP
The advantage of the WTP application in a tender, is that you can immediately verify all the information that you can request from the supplier, based on the supplier's should-cost capability.
This is also how the customer approached this. During the tender, the supplier requested all information about the product. Think of the raw materials that are relevant and in
which country the product (and the raw materials) are produced.
As this information slowly trickled in, our WTP client processed the information in the WTP application. This gave him several insights. For example, the potential supplier was calculating with different raw material prices than WTP indicated. The client asked if the sources of the raw material prices could be made available, in this way all information was verified. The fact that the client can enter the discussion with this information, gives him the opportunity to talk at the same level.
Concrete Results
ecause the customer was able to negotiate with the supplier at a high level and in detail, the customer still managed to achieve a saving of 3% after the tender.
Compared to a previous tender in this product range, the customer realized a saving of 12%. This percentage amounts to several thousand euros.
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