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What are the possibilities of WTP?

WTP can be applied in the following activities:

  • Monitoring of commodity prices;

WTP monitors the prices of more than 2,600 commodities on a monthly basis and closely monitors all price fluctuations. If you want to be kept informed of price fluctuations, you can set up a Commodity Alert. This way, you will always be aware of the latest price movements and, if necessary, you can start up new negotiations with the supplier. This makes WTP ideal for monitoring commodity price developments.

  • Insight in the cost structure of the supplier;

With WTP it is possible to gain insight into the cost structure of different suppliers. This is particularly useful whenever a supplier is planning to increase the price based on one           or more of these cost elements. Using WTP it can be determined how important, for         example, wage or energy costs are in the supplier's total price.

WTP differentiates between two types of cost structures:

Products: To achieve this WTP uses the cost structures of 364 different manufacturing industries. The grouping is based on the NAICS-industry classification, more specifically;

  • 31-33 - manufacturing group.
  • Calculating vendor economies of scale

When purchasing volume increases, WTP can estimate the advantage the supplier has due to economies of scale and on that basis can calculate the discount you are entitled to. WTP takes into account both fixed and variable cost elements to accurately make calculations. Understanding these economies of scale allows you to renegotiate with the supplier, which can lead to more favourable terms and rates.

  • Calculating the cost price of a product

With WTP, it is possible to estimate the cost price of a product. Whenever the cost price does not align with the price quoted by the supplier, you will be able to ask the supplier why its selling price differs from the price based on the WTP calculation. This will allow you to better negotiate the price and even possibly consider going with another supplier.

  • Reporting capabilities

Within WTP there are various reporting options available. Besides the ability to export all main elements in PDF and/or Excel, you can create the following reports:

  • Commodity Spend Rapport: this possibility gives you insight into which commodities you indirectly spend your money on and what your dependence on them is.
  • Product Performance Rapport: this possibility provides you with the knowledge whether you have managed to buy products better over time.
  • Saving Report Products: this possibility allows you to see which services have the greatest potential for savings.
  • Service Performance Rapport: this possibility provides you with the knowledge whether you have managed to buy services better over time.
  • Market Rapport: this will give an insight into what the resources, that are important to you, have done.