Negotiation Strategy: Supplier Standard
The video introduces and explains the "Supplier Standard" negotiation strategy in the ADA Platform, detailing its focus on companies with over 95% identical attributes in the extensive database, criteria for strategy application based on average payment terms, potential benefits of unlocking the strategy, and the occurrence of over 5 instances in the platform's database.
Introduction to Supplier Standard Strategy
- The video introduces the "Supplier Standard" negotiation strategy, which focuses on companies that are over 95% identical in characteristics and attributes in the ADA Platform's extensive database.
Database Analysis
- The ADA Platform examines its database of millions of suppliers, seeking instances of the same supplier with identical attributes, providing a comprehensive analysis for negotiation strategies.
Criteria for Strategy Application
- The strategy becomes applicable if the average payment term of the identified supplier standard is higher than the current payment term of the supplier being analyzed, with the example illustrating a current term of 30.
Unlocking the Strategy:
- The video explains that the supplier standard strategy is unlocked in this example as the average payment term within the supplier standard is 43, exceeding the current term of 30.
Detailed Analysis:
- Clicking on the strategy and scrolling to the right, the video provides a breakdown of the supplier standard, showcasing the average term (43), third quartile (57), and maximum term (77).Potential Benefit:
- If the user decides to increase the average term, it would result in a 13-day extension of payment terms, unlocking $793, with the actual amount depending on the selected currency.
Occurrence Instances
- Information is provided that there are over 5 instances of occurrences of this supplier standard in the ADA Platform, indicating multiple occurrences of identical suppliers in the database.
Application of Strategy
- The video outlines how the supplier standard strategy operates within the ADA Platform, emphasizing its reliance on identical supplier instances to optimize payment terms.
0:00 - In this video, we will be covering the supplier standard negotiation strategy. supplier standard strategy looks at companies that are identical. We are covering over 95% of the same characteristics and attributes in the added database.
0:14 - In other words, the supplier standard is when the ADA Platform looks at its entire database of millions of suppliers and finds instances of the same supplier on different.
0:25 - It looks at the average payment term and this is called the supplier standard. Standard. If that average payment term of the supplier standard is higher than the payment term currently of the supplier which we are looking at, in this example, it's 30.
0:51 - So this would apply and be unlocked since the 43 supplier standard is higher. Then the supplier we're looking at. If it's lower, then it would not be available.
1:03 - you click on and you scroll over to the right, we see a breakdown, So the average, as we said, was 43, but we can also see the third quartiles up to 57 and the max is all the way up to 77.
1:18 - If we were to increase the average, it would increase our payment terms by 13 days and would thus unlock $793.
1:26 - There are over 5 instances of an occurrence of this supplier standard in the ADA Platform.
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