Negotiate & Contract: Professionalization and performance improvement in indirect purchasing
Kerkhoff Negotiate & Contract is revolutionizing purchasing optimization, as projects are started with standardized and specific purchasing conditions. For customers, this means standard contracts have already been negotiated before the first meeting and can be integrated immediately. This enables planning with fixed values, and estimations and benchmarking become a thing of the past. Real conditions can be used for comparison from the very start. With the index-based cost simulation, future budgets can also already be determined today.
Sometimes companies are unaware of the significance of indirect purchasing. At one in every three German companies, the specialist department handles indirect purchasing. However, these employees lack core competences, and strategically favorable pricing is achieved in only a few exceptional cases, meaning the potential to be gained from optimizing indirect purchasing often remains untapped.
And yet indirect purchasing in manufacturing companies generally makes up a share of more than 20 percent of total costs, and this is even higher in the services sector and public sector. A ten percent cost reduction in indirect purchasing provides an average increase in profit of around 1.3 percent. To increase profit by this amount, sales would have to increase by ten percent!
To realize these successes, Kerkhoff Negotiate & Contract provides support with professionalization and performance improvement in indirect purchasing, and allows customers to achieve innovative, comprehensive and long-term optimization.