|
Client Success Story
Price Discipline Model for Liners
SITUATION:
- A major mining company in Chile, South America received a request for a 35% price increase from a supplier of metal liners
- Anklesaria was tasked with building a cost model to evaluate the supplier’s request for the price increase
|
HOW WE HELPED:
- Built a cost model to breakdown the supplier’s price and identify the critical cost elements
- Conducted research to identify indices and other tracking mechanisms for Chile
- Created a price discipline model showing a “fair and reasonable” price change, suggested negotiation strategy and provided the framework and process for future negotiations
BENEFITS:
- Using the price discipline model, the team negotiated a price increase of 13% as opposed to the supplier’s request of 35%
- The team agreed with the supplier to use the model and the process for all future discussions/negotiations on price changes
|
