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Cross-selling in purchasing: definition and important aspects for procurement specialists
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Cross-selling in a nutshell:
Cross-selling describes the strategy of purchasing additional, complementary products or services from a supplier that go beyond the original core business. For purchasing, this enables the use of existing supplier relationships to generate synergies and improved conditions through higher overall volumes.
Example: An automobile manufacturer expands its cooperation with an electronics supplier from pure control modules to display components, thereby achieving an additional volume discount of 7% on the total volume of EUR 2.5 million per year.
Contents
Introduction to cross-selling in purchasing
What is cross-selling in purchasing?
Cross-selling in purchasing describes the strategy of purchasing additional, complementary goods or services from the same supplier in addition to the originally planned product. The aim is to increase the overall value of the business relationship and exploit synergies. By identifying requirements that can be covered by the supplier's extended range, companies benefit from more efficient procurement processes and potential cost savings.
Core elements of cross-selling in purchasing
Importance of cross-selling for purchasing
Cross-selling offers considerable advantages for purchasing. By expanding the purchasing volume with a supplier, better conditions and discounts can be negotiated. In addition, the administrative effort is reduced due to fewer ordering and handling processes. Close cooperation with suppliers also promotes innovation and enables faster reactions to market changes.
Implementation of cross-selling in purchasing
By identifying additional requirements and using the extended product range of existing suppliers, purchasing processes can be optimized and costs saved. Strategic cooperation with suppliers makes it possible to procure supplementary products or services and thus increase the overall value of the business relationship.
Case study: Optimization through cross-selling of industrial components
A mechanical engineering company regularly buys hydraulic cylinders from supplier X. The purchaser recognizes that Supplier X also has suitable hydraulic hoses and pumps in its range. Instead of purchasing these components from different suppliers, the purchaser negotiates with Supplier X to purchase all the required hydraulic components:
1. requirements analysis: the purchaser checks the internal requirements for hydraulic components and identifies additional items required.
2. supplier evaluation: checking whether supplier X can supply the additional products in the required quality and quantity.
3rd negotiation: The buyer negotiates bundled prices and quantity discounts for the extended product range.
4th implementation: Conclusion of a framework agreement for the supply of all hydraulic components by Supplier X.
Result: Through cross-selling, the company achieves better conditions, reduces administrative costs and strengthens the relationship with supplier X. In addition, the supply chain is simplified and synergies are created in warehousing and logistics.
Evaluation and strategic findings
✓ Critical success factors
→ Supplier analysis: Systematic evaluation of the expanded product portfolio and the performance of existing suppliers
→ Demand pooling: Strategic consolidation of related product groups to optimize purchasing volumes
→ Negotiation skills: Professional negotiation of volume discounts and improved conditions with an expanded scope of business
⚠ Challenges and limits
→ Dependency risk: Increased supplier dependency due to concentration of purchasing volume
→ Quality assurance: ensuring consistent quality across the extended product range
→ Market comparison: Continuous review of the competitiveness of the negotiated conditions
Future trends and implications:
"Cross-selling is becoming a strategic lever for sustainable supplier relationships and cost savings."
→ Digital supplier platforms for a transparent portfolio overview
→ AI-supported identification of cross-selling potential
→ Increased integration of sustainability aspects in cross-selling strategies
→ Development of integrated system supplier partnerships
Conclusion on cross-selling in purchasing
Cross-selling in purchasing is a valuable strategic tool for optimizing procurement processes and supplier relationships. By bundling purchasing volumes with selected suppliers, companies can not only reduce costs and streamline processes, but also build strategic partnerships. Despite potential risks such as increased supplier dependency, the benefits of increased efficiency and improved negotiating positions outweigh the risks. In view of digital developments and sustainable procurement strategies, cross-selling will continue to gain in importance in the future.
