Companies need a reliable reference to the market environment for pricing classification and valuation of products in buying and selling. Suitable market quotations are essential for this purpose. These are characterized by timeliness, relevance, authenticity, and availability.
The market information platform HGS Research provides you with over 15 million market quotations. These include procurement goods and their upstream products, services, production value and quantity, international commodity flows, as well as production volumes and the development of wages and salaries across numerous industries and countries.
With this comprehensive data basis, various applications can be covered that offer your company significant advantages.
Reliable information on the structure and development of procurement markets and their upstream markets helps you better understand the origin of relevant goods and the existing risks. You gain detailed insights into the development of market prices as well as wage developments in supplier industries. Additionally, information on transport and energy costs as well as international trade flows is incorporated. General economic trends complete the picture. These external market data form an important strategic component for your commodity group strategy and annual planning.
Market quotations enable you to compare your own prices with supply market quotations or calculated delivery prices based on upstream quotations. Benchmarking can refer to the absolute price, price trend, volatility, or the magnitude of price changes during the closing period. This provides you with a precise overview of your market position. Market quotations make differences transparent and help you identify areas for improvement.
You can evaluate existing offers based on market quotations for the respective products or prices derived from upstream quotations. This way, you recognize whether the offers align with current market conditions. It also becomes apparent if offers are potentially inflated or surprisingly low and therefore possibly implausible or not sustainably achievable.
In negotiations with suppliers, market quotations are a decisive advantage. You can include both market quotations for your target product and calculated comparison prices from upstream markets. This is especially important when only a few offers are available or the market exhibits high demand and utilization. Industries with high price volatility benefit particularly. Well-founded and current market data provide a clear advantage in negotiations.
Market quotations are ideal for developing price revision clause models based on supply or upstream quotations. In such models, at defined points in time — for example, semi-annually or annually — the procurement price is redefined based on previously agreed quotations and an established calculation logic. Particularly in longer agreements of two or three years, market quotations enable a market-oriented and predictable conclusion.
Price revision clause models are especially useful for long-term commitments and are suitable for strategic or bottleneck materials. Lever materials with high switching costs, such as specialized packaging or tool-bound materials, also benefit from these models. The use of market quotations creates transparency for both contracting parties and increases planning certainty compared to unstructured negotiations.
Not only products but also services can be subject to price revision models based on market quotations. This opens up new opportunities across many industries.
Market quotations strengthen your argumentation basis in sales negotiations. They help you communicate price increases transparently and oppose unjustified price reduction requests. Price changes can be justified transparently, allowing you to secure margins and profitability, and to offset cost increases factually. You have access to quotations for the end product or the respective upstream products.
Market quotations are more than just price information. They also include data on international commodity flows. Thus, you get an overview of where your target products are produced and exported to. You also identify from which countries imports are coming into your target country. This information helps you identify new sourcing options, which is particularly relevant in the face of changing geopolitical risks.
The data-driven research of international commodity flows gives you an advantage over the time-consuming traditional supplier research.
The Kraljic Matrix offers a proven structure for segmenting your procurement portfolio and developing specific purchasing strategies.
This category is characterized by high procurement risk and significant impact on the result. They are usually based on long-term supplier relationships. Tenders and short-term offer comparisons are rare. Regular verification of prices based on market quotations ensures transparency regarding price levels and better predictability of cost development — a key advantage for strategically important materials.
Leverage materials have a large impact on the result with low procurement risk. You can leverage your purchasing power through tenders. Market quotations help you measure offers objectively against market prices and negotiate accordingly. Even for costly or test-intensive leverage materials, where switching suppliers is difficult, market quotations support the conclusion of longer, market-based price agreements.
This category is marked by high procurement risk with low influence on the outcome. Supply security is the focus. By analyzing market prices, commodity flows, and source countries, you can monitor price trends, react in a timely manner, and avoid shortages.
Efficiency is the priority here. Market quotations aid in setting prices efficiently for key A-items and minimizing tendering effort. This ensures favorable conditions with minimal effort.
For regularly needed market quotations, the use of consolidated sources is recommended. Uniformly structured data facilitate further processing, save time, and increase process reliability.
The automated integration of market quotations into your systems and tools, such as for procurement price verification, reduces manual effort and minimizes error sources. This increases the reliability of your evaluations.
With HGS Research, you gain access with just a few clicks to a comprehensive, uniformly structured collection of market quotations for products and services. In all the applications mentioned, this data can be highly beneficial for you.
If you have any questions about available market quotations or examples of application, support is available at any time. An individual demo session on-screen can show you all the benefits live.
Contact HGS for more information.