Development of a conditions database at CHRIST

At the beginning, procurement data lacked transparency, which created several challenges. This lack of transparency meant that potential savings could not be fully realized and product ranges remained sub-optimal. As a result, procurement processes were inefficient and strategic planning became more difficult. To resolve these issues, procurement data had to be systematically collected and made fully transparent.

A comprehensive conditions database has been developed to determine the precise net-net margin. This enables the precise determination of the net-net margin per segment, supplier and article. Negotiation targets were derived on the basis of this data, supported by benchmarks for net-net margins and business cases for insourcing. This was followed by several rounds of negotiations, accompanied by efficient savings tracking in order to secure the results in the long term.

The creation of a detailed conditions database, combined with well-founded benchmarks and business cases, formed the basis for the systematic implementation of the negotiations. This structured approach enabled a precise evaluation and control of the negotiation results.

By using the conditions database, CHRIST was able to develop sound financial know-how for the correct recording and evaluation of all agreed discounts, including over 20 different discount variants. The manual recording of the conditions by valantic was time-consuming but crucial “back-breaking work”, which ultimately ensured the success of the negotiations. This resulted in a sustainable optimization of procurement conditions and savings potential.

By establishing a comprehensive conditions database, CHRIST significantly increased transparency in its procurement processes and was able to capture savings in a targeted way. This led to optimized procurement conditions and ensured that negotiation results could be secured over the long term.