Price Forecast Content

What’s the Price: Vendor Introduction (Part 2 — Product Strengths and Weaknesses) [PRO]

In our last brief we introduced you to What’s the Price, a five-year-old Dutch vendor that offers should-cost modeling tools for supplier negotiations. Born out of the frustrations of two procurement professionals who wanted to get faster, more accurate price estimates to counteract supplier quotes, WTP makes smart use of publicly available big data to drastically cut the time and effort in building should-cost models. The solution is notably easy to use and provides a lot of guidance for users along the way, allowing WTP to get organizations up and running with just a two-hour training session. But as with all younger solution providers, there areas for growth, as well, including a few opportunities that could further support WTP’s preference for a self-service deployment approach.

Part 1 of this brief provided some background on What’s the Price and an overview of its offering. In Part 2, we provide a breakdown of what is comparatively good (and not so good) about the solution, a high-level SWOT analysis and a short selection requirements checklist that outlines the typical company for which WTP might be a good fit. We also give some final conclusions and takeaways.

What’s the Price: Vendor Introduction (Part 1 — Background and Solution Overview) [PRO]

Successful supplier negotiations begin long before a category manager sits down at the negotiating table, physical or virtual. Effectively sourcing a product or component requires an understanding of the fundamentals driving a category, the competitive dynamics in a given industry, and a negotiation strategy based on realistic prices or savings that procurement hopes to attain.

But more often than not, determining how much something should cost — that is, what procurement should realistically pay for goods or services — is a process supported more by guesswork than by data science. And building such models can be time-consuming: Cost engineers creating clean-sheet calculations of a product’s likely cost often take weeks before coming back with an estimate.

What’s the Price, in contrast, can deliver an estimated price in less than five minutes — for any category, industry or product.

That may sound a bit like magic, and from an end user’s perspective, it can feel that way. But beneath the hood, WTP, a five-year-old Dutch vendor founded by two former senior procurement professionals, relies on a straightforward approach, underpinned by a smart application of big data.

WTP aggregates prices and cost drivers across hundreds of thousands of mostly public data sources to produce top-down estimates for commodity prices, industry cost structures and product cost models. The result is a fast and reasonably accurate expected market price that procurement can use to set the stage in supplier negotiations, putting the buy side on stronger footing against price increases or “black box” quotes from sales reps.

Part 1 of this Spend Matters PRO Vendor Introduction offers an overview of What’s the Price and its capabilities. Part 2 includes a look at WTP’s product strengths and weaknesses, a company SWOT analysis, and a selection requirements checklist for those that might consider the provider.

Pricing Power and Playing with Payment Terms

savings

For many large companies, extending terms is the easiest way to hold on to cash and make working capital your suppliers’ problem. There are countless examples of large public companies with terms that seem to go beyond common sense.

Will this stop? Is this morally right? I’m not here to pass judgment, but what I would like to better understand is how will inflation impact a supplier’s ability to pass along price increases.

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Long-term ROI from Spend Analytics: 3 Places to Think Outside the Box

Spend analytics solutions often get passed over when it comes to claims of ROI. But spend analysis can provide just as much value as better-explored options like e-procurement or sourcing systems, sometimes providing ROI immediately after being turned on. Yet quick wins and short-term value are only the starting point.

To help procurement pull its head out of the past and begin to see (and plan for) the future, here are three outside-the-box areas where spend analysis can unlock new sources of long-term value.

New Year’s Truths for Procurement: 6 Tips from Spend Matters UK/Europe

Where is procurement going in 2019? While it would be easy to fall into the perennial trap of describing long-term trends as the next big thing, we’d like to offer a more realistic alternative. To start off the year, we suggest reaffirming some hard truths about procurement that can help decision-making in the months to come. To that end, Peter Smith, procurement veteran and outgoing editor of Spend Matters UK/Europe, decided to leave readers in December with a list of six enduring truths about the function. While this advice surely won’t be the last readers hear from Smith, he offers these points as “most of my critical IP” as he steps out of the spotlight.

Commodities Roundup: LME Nickel, Auto Sales Down in China and Oil Price Sliding

Chinese demand

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, we scour the landscape for what matters. This week: Surcharges fall on LME nickel and stainless steel, auto sales stall in China and oil prices drop after a peak in September.

Commodities Roundup: Global Steel Production, M&A Activity and an Alunorte Update

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, we scour the landscape for what matters. This week: Steel production rising, M&A activity, a Spitfire for your wrist.

Amazon Business Prime Updated: Analysis and Procurement Recommendations (October 2018 Update) [PRO]

AnyData Solutions

Earlier today, Amazon announced a host of enhancements to its Amazon Business Prime offering. To help procurement organizations understand the implications of these added capabilities, this Spend Matters PRO research brief provides an overview and analysis of the new solution components and offers recommendations to procurement organizations already using or considering Amazon Business.

The emphasis of this PRO analysis centers on the spend visibility/analytics, e-procurement (guided buying) and working capital/payment capabilities of the October 2018 Amazon Business release. While some of these areas are likely to be less interesting for organizations that already use a third-party e-procurement solution that integrates with Amazon Business (either via punch-out or API), Amazon’s enhanced invoicing, working capital and payment components can be applied to all potential users.

But perhaps most important, these enhancement offer some signals of how Amazon may continue to build out the capabilities of its Prime business solution. Let’s delve in.

Commodities Roundup: Steel Plant Tragedy, Liberty House Looks to Buy and Iron Ore’s Resilience

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts about particular commodity markets. From price movements to policy decisions, we scour the landscape for what matters this week.

Commodities Roundup: Mining in Goa, Aluminum Price Volatile, and Copper’s Recovery

conflict mineral

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts about particular commodity markets. From price movements to policy decisions, we scour the landscape for what matters this week.

Bearish Outlook for Almond Market Despite Recent Jump in Prices

Spend Matters welcomes this guest post from Jara Zicha, market analyst at Mintec.

A lot has been written about this year’s bumper almond crop in California, as well as on tariffs major global importers have stamped on the U.S. product. But despite all of the talk of prices heading down, we have actually seen prices rising lately, by 5% since mid-July. Will this trend last? Let’s look at the current market dynamics.