Extended new revenue stream

Our smart collaboration mechanisms allow buyers to experience real cost savings over and above the cost savings they can negotiate for themselves.

 

The value of any purchase with a supplier (whatever the product, when it was purchased, and how much it cost) attracts an aggregation benefit for each buyer.

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The platform is constructed so that it continues to pay further cost saving benefits to buyers as volumes / revenues accumulate - even after a buyer has stopped buying.

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Supplier offers progressively increase as capacity utilisation optimises - ie the greater the volume / value of transactions through the platform, the greater the savings offered. 

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To illustrate this, a buyer may buy a product from a supplier at its own fully negotiated price, and receive an initial platform cost saving benefit of say 5% of the invoice value. If subsequently the aggregated purchases of other buyers trigger greater savings for the supplier (say 7%, and then subsequently 10% over the ensuing months), the original purchase invoice that attracted a 5% saving will receive a further cost benefit payout of 2%, and 3% (ie. the delta between savings already paid and the new cost saving offer triggered), as each of the offer levels are breeched.

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This effectively creates a new revenue stream for the procurement department, directly falling to the buyer company's bottom line. This new revenue stream reflects additional cost savings over and above the market directly attributable to the supply chain collaboration mechanisms