Negotiation Report with Supplier Risk Analysis
Get the edge in supplier negotiations with Prognos’ negotiation report, including a comprehensive supplier risk analysis. Empower your decision-making in supplier relations and pricing strategies with fact-based arguments to proactively counter unjustified price hikes, driving down procurement costs.
How We Can Help
What’s Included in the Negotiation Report?
Should Cost Tracker
The should cost trackers ensure you are informed about key cost changes across main suppliers and products. Prognos experts analyze your product’s cost structure and deliver a customized report, complete with indices for each cost driver, including materials, labor, and transportation costs, equipping your business with insights into cost distribution.
Supplier Risk Analysis
The supplier risk analysis evaluates the financial risk associated with a supplier by examining key financial indicators. We deep dive into the financial health of the supplier, comparing their performance to industry averages and selected competitors, to provide a clear view of where the supplier stands in the market regarding profitability, stability, and other critical financial metrics.
Coachning
In conjunction with the report, we offer coaching to fully utilize the report and its different parts as effectively as possible in negotiations. We help you prepare fact-based arguments to resist unjustified price hikes and approach negotiations with confidence and solid backing.
Why Prognos?
Supplier risk analysis support with Prognos
- Proven Methodology: Prognos offers a blend of deep expertise and time-tested methods, providing insights and analysis that add value to your strategies.
- Neutral, Fact-Based Arguments: Our unbiased approach ensures strong and fair arguments in your negotiations.
- Customized Index Selection: The should-cost tracker is tailored with the most relevant indexes to meet your specific needs.
- Control and Transparency: Enhance your oversight and clarity in the pricing process, steering clear of unfair practices.
- Confidence in Negotiations: Approach negotiations with the assurance that comes from being equipped with solid facts, rather than relying on guesswork.
Frequently asked questions
What is supplier risk, and why is it important to manage?
Supplier risk refers to potential disruptions from a supplier’s actions or market changes. Managing it is essential to maintain a stable supply chain, ensure consistent quality, and avoid operational disruptions. Effective supplier risk management enables businesses to anticipate and proactively mitigate potential issues, safeguarding against delays or cost overruns.
How often should a business conduct a supplier risk analysis?
Conducting supplier risk analysis at least annually, or more frequently in response to major market or internal changes, is recommended. Regular analysis keeps businesses informed about potential risks and ensures they remain responsive and adaptive to changing market conditions and supplier dynamics.
What role does cost trackers play in supplier risk management?
Cost trackers like the Should Cost Tracker are vital in supplier risk management. They provide detailed breakdowns of costs associated with products or suppliers. This detailed insight into cost structures, including material, labor, and transportation expenses, helps businesses anticipate and respond to price volatility and changes in the supply chain, ensuring more stable and predictable procurement costs.
What are some common challenges in supplier risk management?
Common challenges include adapting to market fluctuations, ensuring supplier reliability, and dealing with unexpected supplier performance issues. Overcoming these challenges involves continuous monitoring, analysis, and proactive supplier risk management strategies to minimize risks and maintain supply chain integrity.
TESTIMONIALS
Loved by businesses and individuals across the globe
After our previous supplier wouldn't adjust their prices according to indications from our models from Prognos, we made the decision to look for a new supplier. The funny thing is that the new prices, after the sourcing project, were exactly in line with what Prognos models suggested. This saved us about 20% within this major category.
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Erik Lehman
Business Developer, New Customer Contact