Digital Procurement: Consistent Global Prices In Real-time
JAGGAER Presents New Global Price Management Feature
Vienna | Research Triangle, NC, USA, August 02, 2017 – International companies that want to buy at the same prices around the globe finally have the tool they’ve been waiting for. JAGGAER, provider of the world’s most comprehensive Source to Pay (S2P) suite for indirect and direct spend solutions, presents its new product, Global Price Management. Global Price Management makes it easy to compare international prices and ensures transparency throughout the company. The innovative product was developed and created in cooperation with MTU Friedrichsthafen, the main company of Rolls-Royce Power Systems. Read the full success story here!
International companies are often faced with the problem of paying different prices in different locations for the same product, produced by the same manufacturer. How is that possible? “One of the reasons for this problem is a lack of transparency when it comes to global pricing information. The relevant terms and conditions are often only available locally and in different ERP systems, which makes it difficult to access this information quickly,” explains Thomas Dieringer, Managing Director of JAGGAER, EMEA. If prices are not stored centrally, but rather within individual, local purchasing organizations, then the company may be missing out on valuable savings opportunities that can result from buying in bulk or bundling effects.
Global Price Comparisons in Real-Time
JAGGAER, the digital procurement specialist, has solved the challenges of global price comparison with the new Global Price Management module. First, JAGGAER harmonizes all of the supplier data and price information from all of the company’s local purchasing organizations. By fully integrating with the ERP systems, all of the data can be viewed and accessed easily in the procurement tool. The next step is to split the total price into global and local price components. The global price components refer to the basic price and the international terms and conditions. Packaging, transport, customs, and additional costs are included in the local price components.
If a buyer negotiates a new price, he or she can add the price directly into JAGGAER. From there, the information is distributed to the connected ERP systems so that all of the company’s purchasing organizations have access to the same price information in real-time. This means that manually updating price information is no longer necessary because the information is updated immediately. This digital connection makes it easier for purchasing organizations to communicate and speeds up internal release processes.