Companies need a reliable reference to the market environment for the price evaluation of products in purchasing and sales. Suitable market notations are essential for this. These are characterized by timeliness, relevance, authenticity and availability.
The HGS Research market information platform provides you with a comprehensive range of market notations. These include procurement goods and their primary products, services, production value and quantity, international flows of goods as well as production volumes and wage and salary trends in numerous sectors and countries.
With this diverse database, various use cases can be covered, offering your company decisive advantages.
Reliable information on the structure and development of procurement markets and their upstream markets will help you to better understand the origin of relevant goods and the risks that exist there. You gain detailed insights into the development of market prices and wage trends in supplier industries. Information on transportation and energy costs as well as international trade flows is also included. General economic trends round off the picture. This external market data forms an important strategic building block for your product group strategy and annual planning.
Market notations enable you to compare your own prices with supply market notations or calculated supply prices based on pre-market notations. Benchmarking can relate to the absolute price, the price direction, the volatility and the amount of the price change in the closing period. This gives you a precise overview of your position on the market. Market notations make differences transparent and help you to identify potential for improvement.
You can use market notations to see whether the offers correspond to the current market conditions. You can also see whether offers may be too high or conspicuously low and therefore implausible or not sustainable.
Market notations are a decisive advantage in purchasing negotiations. You can include both market notations for your target product and calculated comparative prices from previous markets. This is particularly important if there are only a few offers available or the market is experiencing high demand and capacity utilization. Sectors with high price volatility benefit in particular. Sound and up-to-date market data offers a clear advantage in negotiations.
Market notations are ideal for developing price escalation clause models based on delivery or pre-market notations. In such models, the procurement price is redefined at defined points in time - for example, every six months or annually - on the basis of previously agreed notations and a defined calculation logic.
Price escalation clause models are particularly useful for long-term commitments and are especially suitable for strategic materials or materials at risk of shortages. Leverage materials with high switching costs, such as special packaging or tool-related materials, also benefit from these models. The use of market notations creates transparency for both contracting parties and increases the ability to plan.
Price escalation clause models based on market notations can be established not only for products, but also for services. This opens up new opportunities for you in many sectors.
Market notations strengthen your argumentation basis in sales negotiations. They help you to communicate price increases in a comprehensible manner and to counter unjustified price reduction requests with facts. Notations for the end product or the respective preliminary products are available to you for this purpose.
Market notations are much more than just price information. Data on international flows of goods gives you an overview of the countries in which your procurement goods and their preliminary products are manufactured. You can also use data on international goods flows to identify the countries from which imports are being made into your target country. This information helps you to identify new sources of supply in a targeted manner, which is particularly relevant in the event of changing geopolitical risks.
The Kraljic matrix offers a proven structure for segmenting your procurement portfolio and developing specific purchasing strategies.
These goods are characterized by a high procurement risk and a major impact on earnings. Supplier relationships in this segment are often long-term. Regular price checks based on market notations ensure price transparency and better predictability of cost trends - a key advantage for strategically important materials.
Leverage materials have a major impact on the result with a low procurement risk. Here you can use your purchasing power through tenders. Market notations help you to objectively measure and negotiate offers against the market price.
This category is characterized by a high procurement risk with little influence on the result. The focus is on security of supply. By analyzing market prices, flows of goods and countries of origin, you can monitor price trends, identify potential supplier countries, react in good time and avoid bottlenecks.
The focus here is on efficiency. Market notations help to efficiently set prices for important A-items. This allows you to secure fair conditions with little effort.
For regularly needed market quotations, the use of consolidated sources is recommended. Uniformly structured data facilitate further processing, save time, and increase process reliability.
The automated integration of market notations into your systems and tools, for example for checking procurement prices, reduces manual effort and minimizes sources of error. This increases the reliability of your evaluations and the resilience of your arguments in negotiations.
HGS Research gives you access to a comprehensive, uniformly structured collection of market notations for products and services with just a few clicks. This data can be of great benefit to you in all of the applications mentioned.
If you have any questions about available market notations or application examples, you can get support at any time. An individual on-screen demo appointment will show you all the benefits live.
Contact HGS for more information: info@hgs-info.net
Katja Stratmann, Handelsgesellschaft Sparrenberg mbH, Brokstraße 77, 33605 Bielefeld
