How to make the various models work for your business

Please see below a write-up of our experience of the different business models and how to make them work

types of procurement analytics tail spend

Models you can run

The ProcureAnalytiq system allows you to set up different types of models and collaborate with suppliers and customers. Here are the models you can set up.

Product price indexes

Track a market price benchmark  against your price development. Over time you will gain insight and the ability to forecast price developments

Product price mechanism

Agree a full price mechanism with your supplier. It will reduce business risk and allow you to focus on the areas which need your focus

Feedstock tracking

Track keep feedstock trends of your key raw materials, to be able to plan your purchasing and inventory management accordingly.

RM Price index

Set up a key feedstock price index for your key raw materials, and strengthen your negotiating position.

Category index

Index your category against key feedstocks developments, and keep an eye on opportunities and prcurement performance

Procurement index

Index your full purchases against a key basket of feedstocks and market indicators to understand performance and outlook.

Procure Analytiq

DELIVER DIRECT MATERIAL SAVINGS

ProcureAnalytiq is an online cloud-based software tool to track market developments and leading indicators related the direct material purchases for your business. 

ProcureAnalytiq enables user to faster reaction to market changes, better negotiations, automated forecasting of material pricing, better internal and external communication, and ultimately reduces direct Raw Material prices.

Interested to explore more?  

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Price index introduction

Price index use cases

Price index tools

Insight into price development

Indexing the basket of pricing against a weighted basket of feedstocks gives a feeling of price development overtime, and into the near future

Track performance

Track basket of prices against weighted average feedstock developments

Better purchasing and inventory planning

Feedstock price developments will give insight into RM price developments in the short term

Improved supplier relations

Indexing the key feedstocks of your raw materials will balance the relationship with your supplier and reduce your and their risk

Greater clarity

Greater awareness when a commercial relationship is out of balance

Reduced risk

Higher awareness of market developments will lead to better decision making

Improved customer relations

Taking some of the quarterly friction out of the price negotiation, and managing risk on both sides will reenforce the partnership model. And it will allow you to focus on the value-add int he relationship

Transparency

Transparent agreements and indexes will balance the relationship

Reduce risk

Manage expections and reduce risk for both parties. In the long run, it will differentiate you as a supplier