SMART STRATEGY SETTING DOES NOT REPLACE DECISIONS, IT EMPOWERS THEM

Strategieberater, Verhandlungs-Bot, strategischer Einkauf, NEX Daten & Index, digitale Beschaffung

Project strategies like negotiation approaches should be derived from the category strategy, but in practice are often executed completely independently.

WE ENABLE PROCUREMENT TEAMS

Digital solutions are still widely underutilized as an enabler when it comes to defining commodity or project strategies in procurement organisations. 

Strategy setting is seen as a core responsibility of decision makers, however, traditional approaches fail to keep up with rising complexity and speed in modern procurement.

Using game theory, we manage complexity and provide recommendations as actionable advice.

Warenstrategie, spieltheoriebasierende Projektstrategie, TWS Digital Products GmbH, Nnamu München

There are 4 key issues to be solved

strategischer Einkauf, Prozesskosten sparen, TWS Partners, Strategien basierend Spieltheorie
1. NO CLEAR ADVICE

Many existing strategy documents, in particular on the category level remain on a rather abstract level, both as they are done many months before implemented, yet also are manual and lack the ability to make more granular recommendations scalable.

Waren- & Projektstrategien, digitale Beschaffung Nnamu, Spieltheorie, Nnamu by TWS Partners
2. STRATEGIES TOO STATIC

The category strategy is usually revised every 12 to 18 months, but the general conditions in procurement change much faster. Hence, project-level strategeies are often not in sync with commodity strategies which are not adapted to the current conditions, risks and challenges.

Strategieberater, Verhandlungs-Bot, NEX Daten & Index, spieltheoriebasierende Strategien

3. TOO LONG LEAD TIME

Due to the facts described before, methods employed in strategic procurement are also not static, but need to keep up to date with state-of-the-art methodology and change often. Classical strategy processes have way too long lead times to embed new methodologies.

strategischer Einkauf, digitale Lösungen, Einsparungen maximieren, Waren- & Projektstrategien
4. INCONSISTENT DECISION-QUALITY

Especially with large, global purchasing teams, there are often differences in buyer experience and thus in efficiency and effectiveness of negotiations. The consistent use of all available information and data is not always given.

STRATEGY ADVISORS OVERVIEW

Struktur.jpg
digitale Beschaffung, Warenstrategie, spieltheoriebasierende Projektstrategie

Sourcing Category/Project

Nnamu by TWS Partners, Strategieberater, Verhandlungs-Bot

Bilateral

(one supplier)

Advises bilateral or multilateral strategy

Prozesskosten sparen, TWS Partners, Strategien basierend Spieltheorie

Sourcing-Approach Advisor

Delivers a recommendation about contract length and type of assessment basis (per per use, flat fee, user-based, transaction based)

Contract

Advisor

digitale Lösungen, Einsparungen maximieren, Waren- & Projektstrategien München
Warenstrategie, spieltheoriebasierende Projektstrategie, TWS Digital Products GmbH

Negotiation

Execution

TWS Digital Products GmbH, digitale Beschaffung Nnamu

Negotiation
Prep Advisor

Consists of a strategy & homework advisor and a negotiation tactics advisor

Lever analyses are supported by a ZOPA tool

strategischer Einkauf, NEX Daten & Index, digitale Beschaffung

Negotiation

Tactics

Contract extension or back to competition

TWS Digital Products GmbH, Nnamu München, strategischer Einkauf

Carry-Over Advisor

 Spieltheorie, Strategieberater, Verhandlungs-Bot

Negotiation

Tactics

Which KPIs do you need in the contract so that the supplier does not take advantage of you when the project conditions change

Cost-Control

Advisor

NEX Daten & Index, spieltheoriebasierende Strategien, strategischer Einkauf

Generates an advice that is based on economies of sales AND degree of competition

Nnamu, TWS Partners, TWS Digital Products GmbH

Sourcing Advisor

Waren- & Projektstrategien, digitale Beschaffung Nnamu, Spieltheorie

Multilateral

(Competition)

HOW EACH ADVISOR WORKS

Input
Waren- & Projektstrategien München, TWS Digital Products GmbH, digitale Beschaffung Nnamu
Nnamu, TWS Partners, TWS Digital Products GmbH, Spieltheorie
Strategieberater, Verhandlungs-Bot, strategischer Einkauf, NEX Daten & Index

Right question and possible answers (poka yoke style), data from upstream process and guided expert evaluation

Mechanism connecting inputs and outputs based on TWS knowledge (= game-theory-based decision matrix) and data trained ML-model

Algorithm

Implementable recommendation based on data and pattern recognition and still a tailored to the circumstances at hand. Ranked options with

suitability score indicating best fit.

Output

Most common use cases for nnamu strategy advisors

  • Applicable across industries and company types

  • All categories, today more often used for direct materials

  • Projects large enough, yet with wide range from 100-500k to 10b

Companies using the nnamu strategy advisors achieve higher savings. In addition, purchasing is involved earlier in procurement decisions and can conduct better stakeholder management.