Production margin starts with your supplier contracts.

How we approach this industry

We start with an audit of purchasing contracts above an agreed annual volume threshold, together with the full internal ordering path — because cost comes not only from the price in the contract but from how long it takes to act on it. We set actual order volumes against the discount thresholds written into the contracts, and check which agreements have renewed without being repriced. Where purchasing is fragmented, we propose consolidating to a handful of strategic suppliers on uniform framework agreements, with volume discounts and a fixed price-review window; suppliers outside the consolidation are offered longer payment terms in exchange for keeping their volume. In parallel we shorten the approval path to reduce emergency purchasing. Negotiations are run together with the client's purchasing team, with the argument built on the client's own purchasing data. An implementation of this scale typically takes several months, and some conversations end in a change of supplier — but most terms can be improved with the suppliers already in place.