Leveraging Supplier Category Intelligence to Reduce Costs

Following a Gartner workshop on how to implement a sales and operations execution process at a client site, a Supply Chain Leadership Partner (SCPL) was asked for support with renegotiating a contract renewal with a supplier on which the company spent approximatetly $60 million per year. Leveraging expert advice and guidance from our experts, the client was able to achieve cost reductions of up to $600,000.

Mission-critical priority

With an impending contract renewal with their largest supplier, the client was lacking a well-defined strategy to renegotiate terms which would help them streamline and reduce costs.  

How Gartner helped

Gartner supported the client, helping to renew terms and save costs in multiple areas. During their first interaction with a Gartner expert, the client received guidance on planning their negotiation strategy. Post their second interaction, a Gartner expert recommended that the client look into services with a different vendor for category intelligence information they could leverage in their negotiations of commodity prices.

Mission accomplished

With Gartner for Supply Chain Leaders, the client: 

  • Developed a well-defined plan to renegotiate terms with a critical supplier to save costs.
  • Leveraged input from contract pricing consultants and category intelligence information during renegotiation to gain an advantage.
  • Leveraged input from Gartner experts to achieve cost reductions of $600,000.

Industry:
Medical Device Manufacturer

Revenue:
Approximately $1 Billion

Employees:
2480

Contact:
VP of Procurement

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