Sales volume is growing, but trade margin isn't keeping up.

How we approach this industry

A purchasing audit begins with several years of order history at the suppliers who account for most of the purchasing value — that is where the result sits, not in the tail of the list. We set actual volume against the discount thresholds written into the contracts and identify the suppliers where the company has long qualified for a higher rate. Separately we compare payment terms across suppliers: they are usually varied at random, with no relation to volume. For each key supplier we prepare a separate negotiation dossier: order-volume history, a comparison of the current rate with the threshold the company actually qualifies for, and a proposed common standard for payment terms. We order the conversations from the supplier with the largest share downwards. The argument rests solely on the client's own purchasing data — with the largest suppliers, volume alone is often argument enough, without any pressure on the relationship.