By focusing on individual supplier performance, their demands on suppliers are much more likely to be met and they can secure more profitable contracts.
Case: Bygma Gruppen A/S
Bygma strengthens its negotiating position and secures results on the bottom line
“We have created a visibility that makes our demands on suppliers much more likely to be met”
– Interview with Head of Supply Chain Management at Bygma Gruppen, Fredrik Stuhr Pedersen
Lack of overview and Excel gymnastics
Why did you decide to invest in Inact?
We had a clear desire to get an overview of where we should be putting our energy and resources when it comes to supplier negotiations. We had probably fallen into a ditch where we were spending too much time negotiating for goods that didn’t have much value.
Before Inact Now, we were pulling information from different tools, and then we had to cut and paste multiple Excel sheets to get an overview. But we have a very large amount of data, and if we did the extraction and found a need for more information in the material, it was time-consuming to generate new data.
A tool in the supplier negotiation process
How do you work with Inact Now on a day-to-day basis?
We use it extensively when negotiating with our suppliers. 2017 was the first ‘supplier loop’ where we used the platform for just that. We focused a lot on AA items, where we explained to our suppliers why these particular item numbers are our most important. It was important to get a common understanding of, for example, which items they should never run out of.
This year, our focus has been very different from supplier to supplier. Now we know what we get out of Inact Now and what effect it has when we have a common understanding with the suppliers. We continuously review the assortment per supplier based on Inact Now.
Efficiency in the tool
The common ground on how we handle things is also something we’ve gained with Inact. Before, we each had our report and each thought it was the best of all. And there were probably some really good things in mine and the others, but they weren’t as comprehensive as they are now.
We didn’t have these expectations for the platform when we started. We expected that we would achieve certain results, but have been pleasantly surprised by the high efficiency of the tool.
"The results exceeded our expectations"
Results
Better supplier agreements
Greater overview
With Inact Now as a tool in supplier negotiation, Bygma Gruppen has created greater transparency about the individual supplier’s performance.
Improved profitability
For Bygma, supplier negotiations are one of the keys to success. The improved supplier agreements have ensured increased revenue and lower inventory value.
Bygma Gruppen A/S
The Bygma Group is ranked among the Top 100 companies in Denmark. The company employs approx. 2,400 employees in more than 100 business units throughout the Nordic region. The Group is the largest Danish-owned supplier to the construction industry with activities in the sale and distribution of building materials for both large and small construction projects. In 2018, the Bygma Group had a revenue of approx. 7.9 billion DKK. DKK.
www.bygma.dk
