Success story
Cost optimization in procurement through the automated connection of price indices
Modeled target prices
for more transparency and better negotiation success in strategic Procurement
Success story
Cost optimization in procurement through the automated connection of price indices
Modeled target prices
for more transparency and better negotiation success in strategic Procurement
Customer description
Weinmann's mission is "simplify saving lives". Weinmann strives to make the use of its devices as simple as possible for the people who save lives. Weinmann's core products are ventilators and defibrillators, which are primarily designed for use in emergency situations. This is clearly differentiated from hospital equipment and includes equipment that is used in ambulances and helicopters, for example, and therefore also needs to be mobile.
Customer profiles include armies, the Red Cross, ambulance equipment providers, the World Health Organization (WHO) and governments. The majority of employees work in research and development (R&D), as Weinmann develops almost all of its products in-house. Procurement also plays an important role at Weinmann, as this is where decisions are made about components that have a direct impact on people. Quality and availability are therefore a particular focus in procurement.
Without tacto
Due to strongly fluctuating raw material prices and external crisis influences, there have been numerous price increases for various components in recent years. However, it was hardly possible for Weinmann's Procurement department to create a valid basis for analyzing or questioning these developments in a structured manner.
For long-standing suppliers in particular, there was no objective model that could differentiate between justified and excessive price adjustments. As a result, price negotiations were heavily dependent on individual assessments - but not on reliable, fact-based reference values.
With Tacto
Due to strongly fluctuating raw material prices and external crisis influences, there have been numerous price increases for various components in recent years. However, it was hardly possible for Weinmann's Procurement department to create a valid basis for analyzing or questioning these developments in a structured manner.
For long-standing suppliers in particular, there was no objective model that could differentiate between justified and excessive price adjustments. As a result, price negotiations were heavily dependent on individual assessments - but not on reliable, fact-based reference values.
Results achieved
Data-based comparison between prices paid and modeled target prices
Identification of excessive price increases for targeted negotiations
Creation of a fact-based foundation for the reversal of historical price premiums
"With Tacto, I can compare prices paid with the modeled target prices at the touch of a button and call up this data immediately for every negotiation. Tacto offers an outstanding opportunity to reverse price increases from the past. And that is now one of the main tasks of purchasing: to reverse price increases!"
Jan Herburg
Head of Strategic Procurement, Weinmann
Outlook with Tacto
Weinmann plans to further expand the model-based price analyses - also with regard to new suppliers and additional Categories. The aim is to make data-based negotiations the standard and to base pricing decisions on objective market mechanisms in the long term.
