In most industries customer-supplier relations are earmarked as a competitive bidding in which each side tries to outpace the other, disclosing possibly little information with the aim of obtaining the maximum result in their favor. This price-haggling leaves the most important improvement potential often untouched: the cross company saving potential.

In order to capitalize on this potential, customer and supplier must collaborate with one another in order to enhance overall performance, instead of combating for comparatively insignificant short term cost reductions. This approach requires knowledge sharing and the in-depth understanding of the supplier’s business in order to show up reduction potential of which profit both parties. Joint process coordination, know-how sharing or, due to the new transparence, the elimination of wasted efforts, to name a few, bury unknown saving potential.

Cuppers Consulting identifies the commodities suitable for knowledge based procurement and identifies suppliers, receptive for the advantages of the new approach.

We analyze the cost structure of the suppliers and set the common enhancement targets which lead to sustainable cost reductions for both parties. The commitment between customer and supplier is manifested in firm contracts designed by Cuppers Consulting.