You have to be willing to get granular and get into the details of the cost structure. This type of analysis allows procurement professionals to understand the volumes and prices. It’s often best to group the item catalog into three categories. ABC – “A” items are purchased often and at high volumes. “B” items are purchased at lower volumes but a high cost. “C” items are purchased sporadically at varying costs. First, start with the A items, determine which items have the highest-grossing cost, and determine if a new deal should be in order. You can then group these items and send out a new request for proposal.

Procurement teams need to work with budget teams to understand the forecasted budget. Without a forecast, it isn’t easy to negotiate future deals based on volume. But; it can be done. Models can be developed based on the previous history if it’s available.

Don’t be afraid to get into the details and fully understand the purchasing ecosystem. Building functional relationships in the organization will be key to the success of the project.