VALUENEER has applied VAllocation® for packaging materials with the following outcome
The VAllocation® process increases the amount of received bids significantly - on average by factor 10-20. This leads to substantially higher cost reductions and considerable value creation.
Based on our experience VAllocation® is applicable on 40% of the total procurement volume and leads to 2-5% EBIT improvement.
In broad markets VALUENEER invites 120 suppliers to a tender, receives 40 bids and accomplishes on average 28% cost reduction.
In narrow markets VALUENEER invites 23 suppliers to a tender, receives 11 bids and accomplishes on average 17% cost reduction.
In addition to the cost reduction VALUENEER creates value for the client through optimal allocation under consideration of factors like risk, tax, flexibility, speed, quality, innovation and sustainability.
Over time we successfully conducted several projects for diverse material groups, many of which with a high degree of complexity.
The reason for this success: VAllocation®.