Cost Savings in the Supplier Base: How B.I.G. Reduces Process and Procurement Costs Through Centralized Purchasing

In a highly competitive market, effective price negotiations are crucial for achieving cost savings and fostering long-term partnerships. In the webinar "Effective Price Negotiations with Mobil Elektronik," Robin, Head of Materials Management at Mobil Elektronik, and Lea Lieb, Product Expert at Tacto, shared practical insights into negotiation tactics and the role of Tacto in digitizing procurement processes.

Mobil Elektronik is a family-owned company with approximately 130 employees, specializing in control technology for construction vehicles, commercial vehicles, and mobile machinery. Before implementing Tacto's software, 80–90% of purchasing activities were operational, leading to significant time investment and inefficiencies. Negotiations were conducted manually, making it difficult to analyze cost drivers and identify savings potential. The implementation of Tacto enabled the standardization of negotiation processes and better integration of supplier data.

A central topic of the webinar was index-based price negotiation, a method that analyzes price trends using industry-specific indices. This helps companies understand price changes in raw materials, labor, or energy costs and develop well-informed negotiation strategies. The advantages of index-based negotiation include improved transparency and approximately 70% time savings in preparation.

‍Successful negotiations were achieved through the combination of indices and data. One example from the webinar involved a negotiation with a sole-source supplier, where a demanded price increase of 3.5% was reduced to 0%—resulting in annual savings of over $23,000.

Tacto provides mid-market manufacturers with a cloud-based platform for digitizing procurement processes. Features such as cost modeling, supplier evaluation, and compliance support ensure that companies can strengthen their negotiating position and realize savings potential. The webinar demonstrated how companies can not only work more efficiently by digitizing their procurement processes but also achieve better negotiation outcomes.

In our webinar "Effective Price Negotiations with Mobil Elektronik: Applying Negotiation Tactics and Realizing Price Potential" with Robin Lippmann, Head of Purchasing & Materials Management at Mobil Elektronik, and Lea Lieb, Product Expert at Tacto, we show you how to use a tool to choose optimal timing for negotiations, automatically create supplier cost models, and unlock significant price potential through effective negotiation tactics.