{"id":2563,"date":"2019-12-03T11:23:29","date_gmt":"2019-12-03T10:23:29","guid":{"rendered":"https:\/\/www.kloepfel-magazin.com\/magazin2022\/uncategorized\/supplier-convention-renditemotor-2563\/"},"modified":"2020-01-22T08:14:18","modified_gmt":"2020-01-22T07:14:18","slug":"supplier-convention-saving-tool","status":"publish","type":"post","link":"https:\/\/kloepfel-magazin.com\/en\/interviews\/supplier-convention-saving-tool-2563\/","title":{"rendered":"Savings up to 7% possible – Supplier Conventions as a saving tool"},"content":{"rendered":"

Interview with Julius Kley, Lead Consultant for supplier conventions<\/h2>\n

“In purchasing is the profit” It is well known that most companies have enormous saving potentials in purchasing. Nevertheless, these potentials often remain largely unused, as buyers simply lack the time for strategic tasks. This is where the Return on Investment Tool Supplier Convention comes into play – savings up to seven percent are possible. The aim is to establish a basis of trust with suppliers and negotiate new conditions at the same time. In an interview, Julius Kley, Lead Consultant for Supplier Conventions at Kloepfel Consulting, talks about his experiences with the method. Find out how you can benefit from supplier conventions in order to increase your potential in purchasing.<\/strong><\/p>\n

What is the Supplier Convention about?<\/h4>\n

The Supplier Convention is one of our typical methods for achieving purchasing targets. Suitable suppliers and their decision-makers are invited to a one- to three-day event at the customer’s premises. In the course of individual discussions and negotiations, not only direct price reductions but also ideas for joint process optimization and efficiency increases are to be developed.<\/p>\n

How did the idea of supplier conventions develop?<\/h4>\n

A customer approached us with the following problem: when the annual financial statements for 2018 were due, he realized that the figures in the business result would not be satisfactory. In order to still achieve the original goals, he would have had to realize enormous savings in purchasing within a short period of six to eight weeks. Then we developed the principle of the Supplier Convention: the highest possible savings in the shortest time.<\/p>\n

How high is the effort for the customer?<\/h4>\n

\"\"<\/p>\n

The customer himself has very little effort. First, we hold talks with the customer’s buyers. In the course of this we create individual booklets with basic information and requirements, which the suppliers receive in advance. This way, the suppliers are introduced to the storyline of the Supplier Convention and get an overview. The effort for the customer should be kept as low as possible. Only when we implement the event at the customer’s location do we depend on his support regarding to organizational issues such as catering or parking facilities. For this purpose, we have a detailed checklist, which guarantees the smooth running of the Supplier Convention. We take care of the preparation for the event, including the creation of a management presentation and the supplier invitation, as far as possible. In this way, the customer is relieved and can continue to focus on his daily business.<\/p>\n

What other advantages can companies gain from a Supplier Convention?<\/h4>\n

On the one hand, a Supplier Convention strengthens the relationship with the suppliers. The individual one-on-one meetings between suppliers and purchasers ensure an intensive exchange of information. Not only are demands made in the discussions, but also processes that are already functioning well are discussed and further promoted. Based on an offer already submitted by the supplier, a basis for discussion is given. On this basis, negotiations are held during the Supplier Convention to determine how the cost savings can be implemented. After all, the supplier knows his own products and processes best and is aware of the associated potential.<\/p>\n

Furthermore, the Supplier Convention is an important tool for internal purchasing optimization. Purchasing within the organization is strengthened. Also, working in cross-functional teams promotes cooperation among employees. Purchasing is also strengthened as its reputation within the organization increases.<\/p>\n

What characterizes the Supplier Conventions of Kloepfel Consulting?<\/h4>\n

\"\"<\/p>\n

Especially the range of our experience is at the center of attention. We have already carried out several conventions in Europe from medium-sized companies up to corporations. Therefore, we could already establish a good structure for the preparation. For example, we rehearse the course of the negotiations through a role play with the client’s buyers. We simulate the possible arguments of both sides and prepare the buyers for every situation. Team building is of course also in the foreground. After all, a supplier convention only leads to guaranteed success if it is conducted as a team.<\/p>\n

What lessons could be learned from past Supplier Conventions?<\/h4>\n

After the past Supplier Conventions, a better cooperation between customer and supplier was clearly noticeable. This in turn is due to the high level of appreciation that suppliers receive during the event.<\/p>\n

How did customer and supplier perceive the Supplier Convention?<\/h4>\n

So far was the feedback always positive. The customer has always found the overall organisation to be professional. We were also told about a great learning effect, which also strengthened purchasing. On the part of the supplier, the open exchange was particularly appreciated, as suggestions for improvement could be made to facilitate cooperation. These were gladly accepted by the customer. In addition, suppliers were able to gain insights into the customer’s long-term planning, which also enabled them to draw up their own sustainable plans.<\/p>\n

What was the biggest challenge and how was it solved?<\/h4>\n

\"\"<\/p>\n

The biggest challenge at the beginning was to assemble a large number of suppliers in the shortest possible time and to provide sufficient resources for this. For example, one time we had the problem that a customer had too few meeting rooms which were available for negotiations. As a result, we had to switch to a hotel in order to provide enough space for the negotiations. We take these and many other lessons from every supplier convention in order to optimise the processes even further.<\/p>\n

Many thanks for the interview!<\/h4>\n

 <\/p>\n

\"\"<\/p>\n

Interview partner<\/strong>
\nJulius Kley
\nLead Consultant for Supplier Conventions
\nFocus industries: mechanical and plant engineering, automotive<\/p>\n

Contact<\/strong>
\nKloepfel Group
\nChristopher Willson
\nrendite@kloepfel-consulting.com<\/a>
\nPhone: +4921187545323<\/p>\n

For more information about Supplier Conventions you can also have a look at the following article:<\/strong><\/p>\n Here it goes to the article<\/span><\/a>\n","protected":false},"excerpt":{"rendered":"

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