Price Renegotiation South Africa: project record
The incumbent supplier announced an 18% price increase effective in 6 weeks with no negotiation room; switching the entire range was too risky for safety-critical parts.
- Buyer and project
- A Johannesburg, South Africa trucking group running 260 heavy trucks.
- Products and scope
- Brake components and filters; 22 references, annual spend of $410,000.
What LifaSourcing.com did
Benchmarked 5 alternative suppliers on price and quality to establish a credible BATNA.
Negotiated a blended increase: 6.5% on fast-moving references, a freeze on 9, plus a 2% volume rebate.
Qualified 1 alternative supplier as dual source for 8 critical references.
Locked a 24-month pricing agreement.
Blended increase held at 4.2% net after rebate versus the 18% demanded; an annual saving of $56,700; dual source in place as ongoing leverage.
A proven case study from LifaSourcing.com's historical work archive. The result above records the status reached in this project.
Client identities, supplier contacts and confidential commercial terms are withheld from this public company record.
