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.
This story was sent to us by Sean Thistleton, Director Global Procurement at HEMA.