HEMA has over 750 stores in 9 different countries, selling household articles and clothing.
At HEMA the challenge was that we sell a wide range of different products. That is food, non-food and clothing. It is impossible to have in-depth knowledge about every single product, so our buyers and category managers can use the assistance of clever tools. The raw material reports have begun to form a core component of every talk with a supplier.
We do not start negotiating without prior WTP preparation. Recently there was a tough negotiation with a supplier about plungers for example. It was about a Wooden shaft (80 grams) and a rubber suction cup (100 grams), how difficult could it be? The prices had indeed risen the past few months, but in comparison to 2 years ago, they had in fact gone down by about € 0.10. This insight proved valuable as we sell a substantial number of plungers. So, this insight saved us a lot of money. I believe in should costing and I am convinced that you get better results during a negotiation when you negotiate based on facts. The world is becoming more transparent and we gladly invite and help spread that development.