„All knowledge comes from experience.“

- Immanuel Kant

Supplier development & procurement cost analysis

Despite all efforts to reduce procurement costs, a sustainable improvement will only be achieved when all the costs are considered. It is not unusual for price advantages to be over-compensated by quality costs, logistics costs, etc. The combined use of supplier and procurement cost analysis helps to avoid this mistake and the price/risk relationship can be optimised.


With our technical papers we aim to give you practical suggestions for implementation in your company. The papers are generally based on projects already carried out, although we sometimes also take up completely new topics.

Supplier development & procurement cost analysis

Within the framework of the project, the cost situation of three suppliers was analysed. For twosuppliers the goal was to identify potentials for price reductions. For one supplier the potential analysis was carried out in the light of a complete loss of production.

Automotive industry suppliers
Project employees:
6 employees from different departments
Analysis of three suppliers
Turnover with the considered parts:
3.8 million euros/year

The trusting cooperation with our customers is based on the confidential handling of all information, even after completion of the project.

After personal contact, however, we will be happy to provide further information on the projects and also to establish contacts with responsible partners in the companies.