BME- Benchmark "Steel Prices”
As market conditions on the steel market becoming increasingly strained, companies can not longer afford not to identify and realise cost saving potential on a permanent base. This is particularly the case within the steel market which was hit by rapid and volatile price developments over the past few years.
The German Association Materials Management, Purchasing and Logistics (BME) has been involved in identifying the benchmark for steel prices as well as providing quarterly updates for their members.
The BME as a neutral platform provides its member enterprises the opportunity so compare themself with other branch companies anonymously. BME Benchmark Services is an objective instrument for decision making as well as determine your status on the basis of genuine, objective comparison figures. By using meaningful indicators BME-Benchmark participants are having the ability to compare purchase prices in relation to other companies.
Benchmark Pool of „Steel Prices“
Until today we have a high response rate on our conducted benchmarks of different sectors and to achieve all enquiries we started the “steel prices” independent benchmark in the 4th quarter of 2005.
The Benchmark for “Steel Prices” is conducted in three areas:
- Carbon steel: cold rolled coil/ hot rolled coil, broad band/ sheets
- Stainless steel: cold rolled strip/ hot rolled strip, broad band/ sheets
Significant results:
Possible savings reach up to 25%. But there is no need that the participating enterprise with the highest turnover is having the best price.
Transparency and cost reduction by anonymously comparisons
The effective price is calculated by adding the surcharges and other charges to the basic price. The calculation is based on net prices rather than list prices, i.e. effective prices minus discounts or rebates. As soon the data (prices, qualities, surcharges) has been gathered from all participants, it is entered into a central database. The data will subjected to a plausibility check, after which the data is evaluated and made available to the participants an anonymous format.
Benchmark Procedure
For the purpose of evaluation, the steel prices paid by the evaluated company are valued at 100%, while the prices paid by other participants are expressed as a percentage thereof. After completing the evaluation, the participant receives an overview showing the lowest, average and highest prices expressed as a percentage in relation to his own prices and supply structures. The results of the evaluation are available in encrypted form. Together with your individual evaluation you will receive:
- the best price
- average price of all participants
- the target price (=the best price for comparable quantities)
- the difference between your price and the best comparable price
This information is provided for the basic price as well as the effective price.
Your benefits:
- Reorganization of cost-saving opportunity at a glance.
- Determination of status on the basis of genuine, objective comparison figures.
- Creation of great market transparency for purchase related decision-making.
- Obtain meaningful index values.
Participation fee
The participation fee is 1.480 € + VAT for each “steel price” Benchmark.
Further Updates for 390 € + VAT for each “steel price” Benchmark quarterly.
For more information, please contact
Mr. Volkmar Klein
Phone: +49 (0)69-30838-301
Fax: +49 (0)69-30838-199
Email: volkmar.klein@bme.de
