Every negotiator in industrial purchasing is familiar with the situation: suppliers demand higher prices for selected materials, citing developments in raw material indices. This often raises the question in purchasing: “Is this justified?” And how can I obtain information about when price reductions are appropriate?
WebCIS 4.0 enables purchasing to obtain a price benchmark quickly and effectively at the touch of a button. This compares the development of material costs for purchased parts with the development of the price components contained therein. The price components can be stored for each material number in the form of a shadow calculation in the parts list module. Raw material prices from global index exchanges can be assigned, as can wage indices and other price-driving factors.
Webcis 4.0 automatically compares the development of each price component with the materials that contain one or more price components.
A traffic light system shows where action is needed at the touch of a button. A red light means that material costs have risen more sharply than the maintained price indices or raw material prices are falling, but material prices are not changing. This is the moment for every purchaser to enter into negotiations with the supplier.
This example also clearly shows how information and transparency in WebCIS 4.0 facilitate and improve purchasing control.