Success story
Cost Optimization in Procurement through Automated Price Index Integration
Modeled Target Prices
for greater transparency and better negotiation outcomes in strategic procurement.
Success story
Cost Optimization in Procurement through Automated Price Index Integration
Modeled Target Prices
for greater transparency and better negotiation outcomes in strategic procurement.
customer description
Weinmann's mission is “simplify saving lives.” Weinmann strives to make it as easy as possible for people who save lives to use its devices. Weinmann's core products include ventilators and defibrillators, which are primarily designed for use in emergency situations. This is clearly distinct from hospital equipment and includes equipment that is used, for example, in ambulances and helicopters and must therefore also be mobile.
Customer profiles include armies, the Red Cross, ambulance equipment providers, the World Health Organization (WHO), and governments. The majority of employees work in research and development (R&D), as Weinmann develops almost all products in-house. Purchasing also plays an important role at Weinmann, as this is where decisions are made about components that have a direct effect on people. Quality and availability are therefore particularly important in procurement.
Without Tacto
In recent years, volatile raw material prices and external crisis factors led to numerous price increases across various components. However, Weinmann's procurement team had no reliable foundation to systematically analyze or challenge these developments.
Particularly with long-standing suppliers, there was no objective model to distinguish between justified and excessive price adjustments. As a result, price negotiations relied heavily on individual assessments rather than solid, fact-based benchmarks.
With Tacto
With Tacto, Weinmann has established model-based price controlling. Through automated integration of price indices, product prices can be calculated based on raw material and labor cost developments and compared with actual prices paid – anytime, at the push of a button.
Proven Impact
Data-driven comparison between actual prices paid and modeled target prices.
Identification of excessive price increases for targeted negotiations.
Establishing a fact-based foundation for removing historical price markups.
"With Tacto, I can compare actual prices paid against target prices at the click of a button and instantly access this data for any negotiation. Tacto provides an outstanding opportunity to reverse past price increases as well. And that's exactly what procurement's main job is right now: reversing price increases!"
Jan Herburg
Head of Strategic Procurement, Weinmann
Outlook with Tacto
Weinmann plans to expand its model-based pricing analyses to include new suppliers and additional product categories. The goal is to make data-driven negotiations the standard and base pricing decisions on objective market dynamics over the long term.
