Transforming negotiations at scale: 1,000 suppliers, 12 weeks, fast savings
A diversified industrial manufacturer with a global footprint and a supplier base of over 2,000 faced increasing cost pressure and lacked a unified strategy for procurement negotiations.
Siloed communication, inconsistent negotiation practices, and limited data transparency were stalling procurement performance. Supplier relationships were often handled in isolation—neglecting synergies, global leverage, and strategic alignment.
With procurement becoming a board-level priority, the company set a bold target: unlock cost savings at scale—fast. Inverto was brought in to design and execute a targeted negotiation program that could deliver measurable results within just one quarter.
Automotive & Mobility
Objective
The goal was ambitious: To address approximately 1,000 suppliers—representing 80% of the company’s direct spend—within just 12 weeks. The initiative aimed to launch negotiations across key categories globally, involve internal teams at all levels, and generate tangible savings—without compromising supply continuity or stakeholder trust.
Beyond the immediate results, the client sought to elevate its procurement function, build negotiation maturity, and establish a scalable, data-driven process for future sourcing waves.
Approach
Together with Inverto, the company implemented a structured, three-segment negotiation approach tailored to its supplier base.
For strategic suppliers, a game theory-driven setup was developed. Senior executives, including the CPO, played an active role in the process—reinforcing commitment and increasing pressure where needed. Dedicated playbooks, live auctions, and structured scoring templates helped teams prepare and respond in a highly coordinated manner.
For mid-size negotiations, regional supplier events were organized. These sessions were carefully choreographed: upfront communication created momentum, while negotiation tools and predefined targets enabled immediate value capture.
At scale, a centralized “negotiation facilitator” model was rolled out. Using smart cockpits and automated analytics, internal teams managed hundreds of supplier interactions in parallel—supported by bootcamps, live coaching, and on-demand escalation support from Inverto.
Implementation
The company mobilized globally across regions and functions. Hundreds of procurement professionals participated in enablement sessions. Negotiations were initiated across nearly 1,000 suppliers.
Smart negotiation dashboards ensured transparency and real-time tracking. Decision trees based on game theory supported scenario modeling and made it easier for teams to make confident, data-informed offers.
The entire initiative—from concept to completion—was delivered within three months.
Results
The three-tiered approach delivered impressive outcomes. Strategic negotiations led to double-digit savings in core categories. Category-specific supplier events realized rapid wins through tailored negotiation strategies. The scaled facilitator model drove consistency across thousands of line items—without sacrificing speed or accuracy.
Overall, the initiative delivered:
- Double-digit savings in core segments
- Significant ROI realized within weeks
- Sustainable upskilling and enablement of the procurement organization
What began as a cost-saving program became a broader transformation—aligning people, tools, and processes to negotiate with purpose and precision.
