The software called NLPP, developed by Saphirion AG from Zug, checks the appropriateness of purchase prices using the performance pricing methodology.

This is based on the basic assumption that items with the same specifications must cost the same (same target price). The software uses six multi-dimensional linear and non-linear regression methods to compare procurement objects based on their specifications and actual prices, and creates an automatic price-performance evaluation based on this. This creates meaningful benchmarks that specify a target price corridor for purchasing negotiations and reveal potential savings for individual items, product groups or the entire parts portfolio. INNOSourcing incorporates its extensive data pool, which was created as part of the demand pooling of its member companies, into the price comparison.

INNOSourcing GmbH focuses on the procurement of indirect materials. The portfolio also includes services in the areas of logistics, energy and travel, company-specific support and digital services. Through the strategic procurement partnership, the network generates sustainable cost savings for its 60 or so member companies thanks to bundled volumes and the optimization of procurement processes.

"In addition to bundling requirements, we support and advise our customers on all aspects of procurement and cost management. An important aspect of this is benchmarking," says Thomas Schnadt, Partner at INNOSourcing GmbH. "With the NLPP software, we are now in a position to exploit the full potential of our immense wealth of data and uncover potential for improvement in a structured manner."

INNOSourcing takes a three-stage approach to benchmarking: only the data of the respective customer is included in the "small" benchmark. The second benchmark shows how the customer-specific data compares to other customers. For the most complex third benchmark, INNOSourcing obtains offers from new, previously unconsidered suppliers that are present on the market and compares the prices of these suppliers with those of existing suppliers. "This data and analysis constellation is unique," confirms Thomas Schnadt. "It not only brings maximum price transparency to procurement. It also enables us to extend pooling to the procurement of direct materials. This consolidates our position as a pioneer of innovative procurement management in Switzerland."