Introduction to Peer Group Standard Strategy

• The video introduces the "Peer Group Standard" negotiation strategy, which involves considering the peer group average of companies similar in terms of size, industry or commodity, and country/region, selling to similar countries.

Database Analysis

• The ADA Platform examines its extensive database of millions of supplier instances with characteristics such as size, industry, commodity, and country/region, to identify peer groups with similar attributes.

Availability of Strategy

• The strategy becomes available if, on average, the payment terms within the identified peer group are higher than the current terms, as demonstrated in the provided example.

Example Scenario

• In the example, the current terms are zero, and the peer group standard is 46, indicating that the strategy is applicable for negotiation.

Detailed Analysis

• Clicking into the strategy and scrolling to the right, the video displays information about the peer group standard average, third quartile, and maximum payment terms, illustrating that the average is 46.

Unlocking Potential Benefit

• The video notes that if the user increases the terms from 0 to 46 using this strategy, it would unlock $71.8 thousand U.S. Dollars, with the actual amount dependent on the selected currency in the top bar.

Peer Group Occurrences

• Information is provided that there are over a hundred occurrences of this peer group appearing in the ADA Platform database, indicating a substantial dataset for analysis.

Application of Strategy

• The video outlines how the peer group standard strategy functions within the ADA Platform, emphasizing its reliance on peer group comparisons to optimize payment terms.