Select the most effective negotiation strategy and steer the process according to situational variables (e.g., timing, competition, regional dynamics)—always maintaining full visibility of all critical factors. In projects with EFESO, this field includes:
Negotiation & Awarding Management
in automotive, off-highway
& more
approx. 3,000 suppliers
cost reduction across all categories*
of €2.3 billion
In today’s procurement landscape, purchasing organizations in discrete manufacturing must find effective solutions for increasingly complex challenges. As cost pressures rise, product life cycles shorten, and markets remain volatile, a structured and professional negotiation & procurement management approach is more critical than ever. When executed effectively, it not only strengthens the negotiating position but also ensures long-term cost savings. This approach empowers procurement teams to:
- Sustain and improve purchasing performance despite cost pressures and currency fluctuations;
- Manage an extensive supplier base, including those in financially strained situations or at risk of insolvency;
- Achieve product cost reduction targets;
- Prepare negotiations professionally and systematically to achieve optimal results;
- Conduct multiple award scenarios within compressed timelines by leveraging bundling and other strategies;
- Successfully implement structured negotiation systems and advanced methods.
Ultimately, the goal is to contribute meaningfully to company profitability, which depends directly on the quality of negotiation outcomes.
Share knowledge. Professionalize methods. Achieve negotiation excellence.
We support procurement teams in reaching negotiation excellence—driving measurable results and unlocking savings across both direct and indirect spend. Through rigorous preparation and advanced negotiation methods, our clients consistently achieve significant and sustainable savings, with negotiation impacts typically ranging from 6% to 20%.
We continuously refine our methodologies and tools to meet the specific needs of your organization and procurement team. Additionally, we can tailor our approach to align with unique requirements or specialized objectives.
EFESO Success Model: Tool & Method Set for Negotiation & Procurement Management
Our proprietary set of tools and methodologies provides a robust framework for professionalizing negotiation and procurement practices—establishing a lasting foundation for value creation and risk mitigation. Proven across more than 3,000 negotiations, this model is built around four core pillars:
Manage
Prepare
Deliver thorough, structured preparation materials that enable impactful negotiations. This includes in-depth cost, market, and supplier condition analyses.
We identify value opportunities and leverage points, design tailored negotiation strategies, and apply the most effective formats. This also includes crafting probing techniques to elicit key information, for example:
- Supportive negotiation toolset: 360° negotiation & supplier storybook, bid condition management, bonus & malus systematics.
- Game theory & auction toolset: game theory.
- ESG readiness: sustainability assessment, ESG supply chain check, TCO ESG bonus & malus.
Execute
Support the professional execution of complex negotiations. We apply advanced negotiation methods to maximize value and enhance processes through digital tools (e.g., auctions). In projects with EFESO, this includes:
Boost
Holistic, partnership-driven optimization of total costs across the entire value chain, including future product generations. The goal is to balance value creation and value capture. In projects with EFESO, this field includes:
- Bilateral negotiation toolset: supplier cooperation workshops, supplier interface workshops.
- Extended technical negotiation toolset: supplier cooperative cost improvement.
- New currency CO2e: Design to minimize CO2e, BOM CO2e tracking.
EFESO Academy: Empowering Procurement Organizations
Our results are reinforced through EFESO Academy’s dedicated training and coaching programs. These initiatives equip procurement professionals with the capabilities to meet future challenges, delivering tangible improvements. Key features include:
- Developing negotiation capabilities across all four phases and at every organizational level; integrating agile methods and digital solutions for more efficient negotiations;
- Ensuring continuous improvement through lessons learned and best-practice sharing.
Our solution portfolio for purchasing organizations