“Using WTP, We Save Significantly on Procurement Costs”
As a leading non-food wholesaler, Bunzl sources an extensive range of products. While procurement decisions previously relied on intuition and general market trends, adopting What’s The Price (WTP) has introduced a structured, data-driven approach. Frank van Roosmalen, Director of Purchase & Category Management, explains: “WTP is the first tool that has truly enhanced my ability to work more effectively and efficiently.”
Supplying Essential Non-Food Products Worldwide
Ever wonder where businesses get their operational supplies? Chances are, Bunzl is one of their suppliers. This wholesaler provides everything companies use but don’t sell to consumers (not-for-resale). From cash register rolls and meat trays for supermarkets to masks and towels for hospitals. And from napkins and soaps for hotels to toilet paper and cleaning products for catering companies. Bunzl operates on five continents and generates €14 billion in annual revenue, making it a major player in this field.
From Intuition to Informed Decisions
Frank has been with Bunzl for nearly 20 years. He vividly remembers how purchasing was done before discovering WTP. “At the time, my access to information was limited. I relied on raw material and energy market insights, compiling data manually. Negotiations often relied on instinct. With less information available, creativity and strong negotiation skills were essential for success,” he explains.
When a Connection Opened the Door to WTP
Frank’s journey with WTP began through his professional relationship with Robert Driessen, who was then a purchasing director at a prominent office supplies company. “We often talked to exchange ideas. At one point, he told me he was starting What’s The Price. Through him, I realized how little information I actually had as a buyer and how much it helps to back up your case with facts. He convinced me to try WTP. That was 10 years ago,” he says.
Structured Fact-Based Data
Since then, Frank has used structured, fact-based data in his negotiations. “WTP enables users to monitor raw material price trends, track detailed cost profiles, and map product cost structures with precision. Its unique ability to link raw materials to product pricing and the broader industry context sets it apart from conventional tools. This includes insights into the breakdown of energy, transport, and labor costs within a price structure. It’s a unique combination I hadn’t seen in a tool before. WTP goes far beyond just raw material prices, enabling me to work more efficiently,” Frank says.
Currently, Frank’s role has shifted towards a more strategic focus. “This means I don’t negotiate as often myself. I contribute to policy decisions and advise buyers. I help them approach cases differently using What’s The Price, so they can negotiate better. Then I support them in leveraging their stronger negotiating position,” he explains.
Driving Savings in Hygiene Paper Procurement
One notable case where WTP insights proved invaluable was during negotiations involving hygiene paper procurement. “Everyone knows that raw material prices for this product skyrocketed during the pandemic. Increases of 35% to 50% over 1.5 years weren’t uncommon,” says Frank. “But fewer people realize that these same raw material prices plummeted after the pandemic and dropped below pre-pandemic levels. We discovered this thanks to WTP.”
“The supplier’s prices didn’t reflect this. Looking at their annual reports revealed they had achieved their best-ever results.” Armed with these insights, the team entered negotiations with a strengthened position. “The supplier couldn’t dispute our demonstrable facts. This gave us a very strong position, resulting in a significant price reduction,” Frank says enthusiastically.
“We discovered this thanks to WTP: raw material prices had dropped below pre-pandemic levels.”
Building Consistently Strong Positions
The various ways WTP can be used make the tool very effective. ” When a supplier announces a 10% price increase based on a rise in raw material costs, I analyze the price structure using WTP. For instance, if raw materials constitute 60% of the price, the increase should not exceed 6%. We use these data points as the foundation for our negotiations,” Frank explains.
“We also use WTP insights for trends. Is there a short-term decline or a long-term increase, and do procurement prices reflect that? That’s why we look back one year and multiple years. This approach always provides strong arguments, leading to better positions and greater leverage in negotiations.”
Negotiating a 10% Price Reduction
Frank recently advised a Bunzl sister company in Belgium. “WTP revealed that a major supplier in the supermarket industry was charging excessively high prices—up to 12% too much. Based on facts from What’s The Price, they started negotiations, resulting in a 10% price reduction. This wouldn’t have been possible without WTP insights,” he says. “It just shows the more leverage you have in the supply chain, the more margin you gain. WTP helps build that leverage with facts.”
Looking Ahead: Opportunities for Growth
Despite WTP’s capabilities, Frank identifies areas for further improvement. “It would be great if WTP included product compositions, allowing users to quickly identify the materials that make up an item. Additionally, further features to simplify countering inflation-related arguments would be valuable. While WTP provides exchange rate insights, assessing the precise impact of inflation on pricing remains challenging.”
Overall, Frank highly recommends WTP to others. “Besides all the substantive advantages, the tool is also user-friendly. Setting up raw materials and adjusting data is simple, with an intuitive interface that makes it practically self-explanatory. At Bunzl, we make great use of it.”
