Pricing and Purchasing Service Understanding supplier costs Enhancing supply chain efficiencies.

Pricing and Purchasing Service

Understanding supplier costs

Enhancing supply chain efficiencies

Global Insight Pricing and Purchasing Service

When it comes to planning purchases, setting budgets, and bidding proposals, it can be tough to make the right decisions. Global Insight’s Pricing and Purchasing Service can help:

Benchmark buys versus market prices

Understand market fundamentals and the impact on supplier’s cost structures

Effectively assess supplier quotes

Enhance strategic timing of buys to capture maximum savings

Improve project cost estimation process

For over 25 years, Global Insight has been the recognized leader in providing detailed

price and wage projections to companies around the world.

Our credentials are second to none.

23 offices in 12

countries

325 experts fluent in 30+ languages 170

industries and 200+ countries covered

140+ advanced degrees

Global Insight Credentials

Commodities and Wages

Our Pricing and Purchasing Service contains detailed global information for over 800 commodities and wages.

Extensive historical market data combined with our projections can help you more effectively manage your supply chain costs.

Detailed GlobalHistorical Data

Global Material

Prices and Wages

Forecasts based on market fundamentals

Assess Supplier Quotes

Assessing supplier quotes is simple with the Cost Analyzer. This Excel-based tool lets you access our commodity cost structures and detailed market projections.

By analyzing an industry’s cost structure and end-market demand you can easily determine if a price hike is justified and whether there is room for negotiation.

Assess Supplier Quotes

Solder and Supplies(Represent 5% of cost) 0% Increase

Capacitors, Resistors &Various Components(Represent 33% of cost)1% Decrease

Semiconductors(Represent 10% of cost)2% Increase

Equipment/Components(Represent 15% of cost)2% Increase

Labor(Represents 37% of cost)2.5% Increase

The increase is too high. An increase of 1% is justified

For example…Your circuit board supplier has increased their price by 3%. Is it justified?

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

2000 2001 2002 2003 2004 2005 2006 2007

Prices Input Costs Productivity Adjusted Input Costs

Our Cost Analyzer allows comparisons of market prices to suppliers’ costs, including productivity adjustments that tell the real story.

Margin Analysis – How Firm is that Quote?

Benchmark Costs

It appears as though you are getting a good deal…

…until you include productivity adjustments.

A total market perspective, which includes demand, cost, productivity, and market drivers, allows you to identify industry margins and evaluate supplier performance.

Armed with this data, you can go back to the table and negotiate a better price.

Construction Machinery and Equipment

Prices are at a Turning Point

Understand Markets

Understanding the market is key to projecting price changes. All too often, purchasers make the mistake of using last year’s increases to forecast this year’s prices. About half the time, they are paying more than they need to.

Global Insight forecasts whether costs will rise or fall, allowing you to negotiate the best price or determine the best time to buy.

0.6

0.9

1.2

1.5

1.8

2.1

2.4

2.7

1996 1998 2000 2002 2004 2006

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

Global Insight Industrial Materials Price Index, Jan 2002=1.000

Industrial Production, G7 Economies, Year-Over-Year Change

Avoid Cost Overruns

Our Pricing and Purchasing Service simplifies this process by offering over 1000 different proxies, enabling you to find the closest possible match.

Choosing the right index is critical to projecting future expenses. Too broad or too narrow a category might cost you millions.

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-2

0

2

4

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8

2000 2001 2002 2003 2004 2005 2006 2007 2008

PPI, Aircraft PPI, Nonferrous Forgings CPI (All Urban)

The Wrong Index Can Cost Millions!(Pct Chg)

With our vast selection of global prices, wages, and exchange-rates, you can select the indicators most applicable to your supply chain…

1000+ Indicators

…and we instantly present past commodity/wage performance and future trends, allowing you to benchmark purchases and project future costs.

Prices and Wages Forecast by Global Insight

AGGREGATE INFLATION MEASURES16 Producer Price Indexes19 Producer Price Indexes – Stages of Processing9 Consumer Price Indexes1 GDP Price Deflator

ENERGY3 Market Prices15 Producer Price Indexes5 Labor Costs

STEEL11 Market Prices16 Producer Price Indexes4 Labor Costs

FABRICATED METALS29 Producer Price Indexes4 Labor Costs

NONFERROUS METAL PRODUCTS17 Market Prices24 Producer Price Indexes3 Labor Costs

CHEMICALS AND ALLIED PRODUCTS13 Market Prices35 Producer Price Indexes7 Labor Costs

BUILDING MATERIALS 22 Producer Price Indexes9 Miscellaneous Price Indexes4 Labor Costs

ELECTRONIC COMPONENTS 2 Market Prices26 Producer Price Indexes5 Labor Costs

NONELECTRICAL MACHINERY 33 Producer Price Indexes5 Labor Costs

ELECTRICAL MACHINERY 19 Producer Price Indexes4 Labor Costs

TRANSPORTATION EQUIPMENT 15 Producer Price Indexes14 Labor Costs

MEASURING AND CONTROLLING INSTRUMENTS 10 Producer Price Indexes6 Labor Costs

PAPER AND PACKAGING9 Market Prices14 Producer Price Indexes5 Labor Costs

TRANSPORTATION and LOGISTICS8 Consumer Price Indexes7 Producer Price Indexes3 Labor Costs

MAINTENANCE, REPAIR and OPERATION (MRO)7 Chemicals, Plastics, Petroleum & Rubber7 Construction & Building Materials10 Primary & Fabricated Metals6 Paper, Printing, & Packaging7 Non-Electrical and Transportation Equipment & Machinery7 High-Tech & Other Electrical Equipment & Machinery2 Miscellaneous

CORPORATE EXPENSES13 Corporate Overhead9 Travel Expenses7 IT Services8 Health Care Benefits

DEFENSE/AEROSPACE PRICES AND WAGES11 Producer Price Indexes8 Average Hourly Earnings5 Employment Cost Indexes

LABOR COSTS110 Average Hourly Earnings ($/Hr.)52 Employment Cost Indexes

CONSUMER PRICE INDEXES38 Indices

TRANSPORTATION EQUIPMENT 15 Producer Price Indexes14 Labor Costs

MEASURING AND CONTROLLING INSTRUMENTS 10 Producer Price Indexes6 Labor Costs

PAPER AND PACKAGING9 Market Prices14 Producer Price Indexes5 Labor Costs

TRANSPORTATION and LOGISTICS8 Consumer Price Indexes7 Producer Price Indexes3 Labor Costs

MAINTENANCE, REPAIR and OPERATION (MRO)7 Chemicals, Plastics, Petroleum & Rubber7 Construction & Building Materials10 Primary & Fabricated Metals6 Paper, Printing, & Packaging7 Non-Electrical and Transportation Equipment & Machinery7 High-Tech & Other Electrical Equipment & Machinery2 Miscellaneous

CORPORATE EXPENSES13 Corporate Overhead9 Travel Expenses7 IT Services8 Health Care Benefits

DEFENSE/AEROSPACE PRICES AND WAGES11 Producer Price Indexes8 Average Hourly Earnings5 Employment Cost Indexes

LABOR COSTS110 Average Hourly Earnings ($/Hr.)52 Employment Cost Indexes

CONSUMER PRICE INDEXES38 Indices

Compete Globally

The Cost Analyzer contains over 250 international price and wage indexes and a wide assortment of exchange rates.

The service tells you how much wages are today…

and how much they’ll grow tomorrow.

Where to Locate a Manufacturing Facility?2004 Compensation and Annual Percent Change in Unit Labor Costs

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

U.S. Taiwan Korea Germany

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6.0%

8.0%

Pct Chg

Hourly Comp - left Unit Labor Costs - right

To compete globally, you need to assess multiple locations around the world. Effective global expansion requires consistent price and wage intelligence across countries and regions.

More than just a database, Global Insight’s Pricing and Purchasing Service gives you the analysis behind the numbers, enabling you to understand industry fundamentals and the drivers of price changes.

Analysis Behind the Numbers

With Global Insight’s Pricing and Purchasing Service, you will:

Achieve greater accuracy in cost benchmarking, quotation analysis, and project-cost estimation

Gain more leverage in contract negotiations

More effectively set purchasing budgets and defend them with management

Improve supply chain management

Get the Upper Hand

The Savings Add Up

Our Pricing and Purchasing Service finds the hidden money in your supply chain to maximize savings!

The Center for Medicare and Medicaid Statistics uses our detailed price and wage forecasts for setting reimbursement rates for health facilities.

The U.S. government’s Defense Contract Audit Agency (DCAA) uses our inflation projections to evaluate contract proposals for many federal agencies.

A transportation equipment manufacturer used our Pricing and Purchasing Service and saved $2.2 million in one buy.

A diversified machinery manufacturer used the Cost Analyzer and saved $60 million in one year.

Contact Us

Find the money hiding in your supply chain. Call us today:

North and South AmericaMark [email protected]

Europe, Asia and AfricaJenny Sleep+44.20.7452.5199

[email protected]

For more information: www.globalinsight.com/Pricing