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PRC-47

Supplier-enabled value programmes

The problem it solves

Once a category has been tendered twice, price negotiation is exhausted — but direct and indirect materials are more than 60% of a typical manufacturer's cost base, so the pressure does not go away.

At a glance

Reference
PRC-47
Function
Procurement & Sourcing
Lens
Digital
Effort tier
Advanced
Time to value
3–6 months
Evidence
Proven
Sectors
Cross-sector

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