Author:
Rafał Dados
Why Procurement Analytics Matters
Companies today must keep costs down, stay competitive, and avoid supply disruptions. Procurement analytics gives buyers the data they need to see where money is really spent and to pick the best savings moves.
Three Fast Facts (2022–2024)
- Energy prices: The World Bank Energy Price Index jumped 29% in total. (World Bank, Commodity Markets Outlook, Apr 2025).
- EU wages: Hourly labour costs in the EU went up by about 13%. (Eurostat, 19 Mar 2025).
- Ocean freight: The Asia→Europe FBX11 container rate at Q1 2025 was still over twice the 2019 average. (Freightos Baltic Index, 28 Jan 2025).
These numbers show why buyers need solid cost‑control methods.
Breaking Down Costs
To find real savings, start by splitting a product or service cost into parts. Let’s look at guarding services when the legal minimum wage goes up.
How Minimum Wage Hikes Hit Guarding Prices
Wages are the biggest share of guarding costs. If the minimum wage rises 20%, hourly rates can jump 12–18%, depending on how much of the bill is payroll.
Cutting Labour With AI Watch Towers
Many security firms now use mobile surveillance towers. Each tower has PTZ cameras, loudspeakers, and AI software that spots movement and decides whether it’s a person or, say, a stray dog. Staff in a control room can speak through the tower or send a response team.
Case study
- 4 towers replaced night patrols, so guard numbers dropped from 6 to 2 per shift.
- Total security spend fell 35 % even after the wage hike.
- Payback time (ROI) was 14 months.
As a buyer, you can trade a straight wage‑driven price increase for a tech‑plus‑remote‑operator deal, shrinking the labour share while keeping service quality.
Remember: Look at the Total Cost of Ownership (TCO). Only full‑cycle costs tell you what a service really costs.
Supplier OEE: A Quick Win on Part Prices
A supplier’s Overall Equipment Effectiveness (OEE) measures uptime, speed, and quality. Boosting OEE from 70% to 85% cuts downtime and scrap, so unit prices can fall by double digits. Ask suppliers for their OEE plans and build targets into your contracts.
Using a Linear Price–Performance Check
Buyers often test if a price grows in line with a technical feature (weight, power, length). Example: aluminium profiles should cost more as they get heavier per metre.
- Collect prices and weights from the supplier.
- Plot price against weight on a scatter chart and draw a trend line.
- Spot outliers: Points above the line are pricey; points below might be bargains or data errors.
- Negotiate the biggest gaps — ask why a part is off the line and push prices toward the trend.
Tools like ChatGPT can fit the line and flag outliers in seconds. This simple check often saves 5–10% of the contract value without changing specs.
Ready to practise these methods? Our workshop walks you through examples and gives you templates you can use right away:https://eveneum.com/en/produkt/buyer-analysis-and-savings/
Rafał Dados
Lecturer in procurement at Jagiellonian University
With 20 years of experience in project and strategic sourcing, he has been a co-owner of Eveneum for 12 years, a company specializing in consulting and training for procurement in industries that require building relationships and trust between partners. His expertise lies in supporting clients with project sourcing and early supplier engagement, as well as involving the procurement department in development work. He leads projects such as negotiation assignments, supplier searches, and negotiating cooperation terms on behalf of clients. He is a speaker at procurement conferences both in Poland and abroad. He also lectures on procurement at Jagiellonian University.
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