What is a reasonable price?

Zug/Munich, 29. August 2022 – More companies are relying on Saphirion's NLPP software (Non-linear Performance Pricing) to identify saving potentials in their purchasing data as it offers a unique speed advantage against classical methods. NLPP requires data that often can only be found on technical drawings and gets extracted manually. Werk24 can automatically extract this information in high quality and at high speed. Today, both companies combine their know-how from CAD data extraction and price analysis to massively accelerate and simplify the NLPP analysis of thousands of part numbers.

Saphirion has been offering its customers the most comprehensive mathematical price analysis solution on the market for more than ten years. "Companies should always know what price is appropriate for each item number," says Robert M. Münch, CEO at Saphirion, summarising the idea behind NLPP.

NLPP generates target price forecasts

NLPP checks the "correctness" of purchase prices with the help of six multi-dimensional linear and non-linear regression methods to uncover cost reduction potentials in the purchasing portfolio. The technique compares purchasing objects based on their characteristics and actual prices and automatically determines reasonable target prices that reflect the respective price/performance ratio.

The target prices calculated using NLPP are very informative, and the time required for the analysis is comparatively low. In addition, NLPP can be used across all sectors to analyze complete purchasing portfolios - from service providers to the manufacturing industry. This extraordinary flexibility and high-quality analysis results provide users with a substantial competitive advantage.

From the drawing into the digital world

Despite ongoing digitization efforts, much relevant information is still exclusively found on 2D CAD drawings and is not available at the click of a button. "This circumstance plagues all companies using up an unnecessary amount of resources and, on top of that, delays the performance of price analyses and the implementation of the acquired knowledge. Every company is looking for a solution to this problem," Robert M. Münch describes the current situation in the market.

Münch continues: "I know many approaches and projects that deal with this problem and want to create an automated solution. However, no solution had convinced me - everything proved to be time-consuming. Even when the interesting information was recognized, the extracted data was of poor quality and useless for any meaningful analysis. Over the last six months, we have worked intensively with Werk24 and experienced the unsurpassed strength of the Werk24 solution. It is the only software capable of quickly extracting high-quality information from 2D drawings."

CAD Data extraction and Price analysis from a single source

The partnership offers a simple solution for anyone with part drawings who wants to uncover potential savings in purchasing or is developing a costing solution for their industry. "To succeed in such a project, you need access to high-quality data and a proven costing process. Werk24 and Saphirion now offer an answer from a single source," says Dr. Jochen Mattes, CEO at Werk24, summarising the added value.

Mattes continues: "Customers often think their situation is so special that a standard tool for price analysis is not suitable. Saphirion has a clear answer: the historical purchasing data represents the individual situation very well and is thus automatically considered. This fact makes individual solutions redundant. It allows us to implement projects in a scalable and speedy way - usually within a few weeks. This combination is unique in the market and was the deciding factor for us for the partnership."

The cooperation between Saphirion and Werk24 goes far beyond a purely technical collaboration. Both companies unite the spirit of developing innovative solutions with high-quality standards.