CASE STUDY : We enabled a global industrial equipment manufacturer to anticipate market trends ahead of time.
Our client faced an issue with price negotiations over metal with suppliers. The hyper-cyclical mining industry tends to focus heavily on combative price negotiations when metal prices fall by over 10-15%. As a result, suppliers often link their prices to their customer’s metal movements, regardless of supplier costs. Our client needed to gain an advantage over this trend.
We conducted a comprehensive market analysis that focused on understanding key price drivers including labor regulations, technology, demand and capacity utilization. We then supplied our key findings and insights to the client for immediate implementation.
Thanks to our analysis, the client was able to proactively engage suppliers 3 to 6 months earlier instead of waiting for rate negotiations after prices had changed. After experiencing the clear benefits of this approach, the client proceeded to use the same ‘anticipate the market’ philosophy across its aircraft, automotive and energy portfolio.
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