Compare supplier pricing and performance to market rates and ensure competitive value.
Benchmarking of your suppliers against market rates and competitors. We obtain market quotes, compare pricing and terms, and identify opportunities to negotiate better rates or switch to lower-cost suppliers.
The short answer
Supplier benchmarking compares a business's existing suppliers against market rates and alternatives — on price, terms and total cost of ownership — to reveal whether current pricing is competitive and to provide the data needed to renegotiate or switch. It’s one function of Procurement within your Operations Hub — part of a connected back office.
The Challenge
Common problems we solve
You've been with the same supplier for years and don't know if pricing is still competitive
You suspect you're overpaying but have no data to support negotiation
You don't know how many alternative suppliers are available
You're afraid to change suppliers and lose service, even if price is high
What's Included
Here's what you receive
Market quotes
Quotes obtained from competing suppliers for the products and suppliers you select to benchmark.
Like-for-like comparison
Pricing, terms and service quality compared, looking at total cost of ownership rather than unit price alone.
Overpricing identified
Suppliers charging above market clearly flagged, with the data to back it up.
Negotiation strategy
A strategy developed to negotiate with your current supplier using the market data as leverage.
Alternative options
Alternative suppliers considered where your current supplier won't match competitive pricing.
Why It Matters
How it works
Supplier benchmarking answers: Are we paying market rates? Could we get better pricing elsewhere? For critical suppliers, benchmarking provides negotiation data. For overpriced suppliers, benchmarking justifies switching to alternatives. This is particularly valuable for commodity products (office supplies, freight, telecommunications) where price variation is significant.
Competitive pricing based on market data
Negotiation leverage knowing market rates
Identification of overpriced suppliers
Volume discount opportunities identified
Better contract terms negotiated
Confidence you're getting competitive pricing
The Process
How supplier benchmarking works
Supplier and product selection for benchmarking
Market quotes obtained from competing suppliers
Pricing, terms, and service quality compared
Total cost of ownership analyzed (not just unit price)
Negotiation strategy developed
Negotiation with current supplier based on market data
Alternative suppliers considered if current supplier won't match pricing
Best For
Who this service is ideal for
Businesses with major spending categories worth benchmarking
Companies wanting to validate supplier pricing before renewal
Organizations ready to negotiate or consider alternative suppliers
Complementary Services
Related services to explore
Spend Analysis
Comprehensive analysis of your organization's spending identifying cost reduction opportunities, supplier consolidation, category trends, and procurement risks. We analyze vendor invoices to understand what you're buying, from whom, and at what price.
Contract Management
Management of supplier contracts including negotiation, documentation, compliance tracking, and renewal management. We ensure contracts protect your interests, capture negotiated terms, and are managed proactively.
Ready to get started with supplier benchmarking?
We can help you implement supplier benchmarking and start seeing results. Book a consultation to discuss your specific needs and explore how this service can transform your business.