Pricing Decision Support Tool
What is Price Point?
Price Point is a powerful web-based tool used by Contract Officers, Procurement Specialists and Buyers to perform market research and to rapidly evaluate and determine fair prices for commonly purchased parts.
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Why is Price Point Needed?
The determination of accurate prices is critical in today’s economy as budgets are cut and organizations must find ways to do more with less. One of the challenges facing the acquisition and procurement community is that the sheer volume of data that must be evaluated, coupled with pervasive data quality issues – identical parts described differently, does not provide sufficient transparency for a Contract Officer, who may be tasked with evaluating pricing for thousands of individual parts per contract, to determine if an item under evaluation is priced reasonably.
Price Point uses powerful XSB technology to standardize data across the supply chain and compare proposed item prices to tens-of-millions of current catalog prices as well as historical prices paid to rapidly, and precisely, determine reasonable price variations.
Users are provided with actionable reports to facilitate negotiation with suppliers and for contract file documentation. These reports rank items in terms of price risk, flagging prices which are determined to be too expensive in comparison to competitor prices for identical parts.
Price Point also supports source selection activities by identifying alternate suppliers selling the same item at a lower price. Price Point automates price analysis and evaluation for tens-of-millions of commercial products and provides users with actionable pricing intelligence in an intuitive,negotiation friendly format.
What are the Benefits?
Price Point has been successfully used by the largest contracting organizations in the USG to:
• Improve efficiency and productivity
• Drive savings
• Reduce lead times and lower total acquisition costs
• Comply with Strategic Sourcing initiatives
• Ensure acquisition decisions are made accurately and consistently across the organization
How can I learn more?
For additional information about XSB Price Point please contact us or call 631-371-8100.
To learn more about this topic, please read our related whitepaper Ensuring Good Value: New Methods for Price Evaluation