Electro world, White Goods Specialist, Photo Specialist, and Euronics are a few examples of this. The entrepreneurs put high quality, personal advice, and complete service first. That is not the only common denominator. By being affiliated with Euronics, they benefit from a large-scale purchasing advantage, optimal purchasing conditions, and prices. This is possible because Euronics is the largest retail organization within the electronics market in the Netherlands and in Europe. Euronics, together with CLEVR, has taken contract management to a higher level to take full advantage of this.
An Interview with Gabor Olah, EMEA Business Analyst at Euronics.
''To achieve this, an optimally streamlined ‘contract management process’ is indispensable. At the same time, we did not want this to be at the expense of our members’ “
In recent years, Euronics has experienced significant and rapid growth. New retailers have also joined in the expansion of the number of stores per entrepreneur. They can operate autonomously and use a local market approach is an important reason for them to choose Euronics. However, there is a challenge here. “It complicates acting as a whole during the negotiation of international contracts. Which is necessary to negotiate the maximum benefit for our members,” said Gabor Olah, EMEA Business Analyst at Euronics. “To achieve this, an optimally streamlined ‘contract management process’ is indispensable. At the same time, we did not want this to be at the expense of our members’ “own” way of working because that is a strength. We, therefore, decided to look for a solution where this would not become an obstacle. And where we can still offer our members the purchasing advantage in this highly competitive market.”
Euronics enters into contracts with suppliers and makes agreements for the group as a whole. Affiliated entrepreneurs can subscribe to the deals that they find interesting. They then adjust the targets to their local needs and do the final negotiation. For example, prices and targets are matched for televisions of a particular brand, type, size and color, et cetera. Because the members themselves have set up their IT infrastructure and use self-selected applications to support the processes, the data was collected manually and stored in a system. “The previous system was an interface to display the aggregated data. There was no further automation, so it mainly offered the members the opportunity to look back.”
CLEVR works with application development platform Mendix, and that is an effective combination. It fits well with CLEVR agile approach. The short iterations and implementations bring speed to the project.
“We wanted a new system that would help Euronics, in the role of international negotiator, and the members get the most out of a deal,” Gabor explains. “The fact that the system can move flexibly with our growth and that the members could use it easily were essential requirements. We were looking for a system that members have access to and that supports A to Z’s process, also on an administrative level. In this way, we can continue to operate efficiently and benefit from the volume advantage.
Another important criterion is that the system not only provides insight into the achievement of targets but also supports good forecasts and analyzes that the members can make themselves.”
Given the unique organizational structure, an application had to be tailor-made. Euronics’ choice for this came to CLEVR. Since 2013, both the application and the collaboration have become increasingly stronger. Gabor says: “CLEVR works with application development platform Mendix and that is a convincing combination. It fits well with CLEVR agile approach. The short iterations and implementations bring speed to the project. ”
From now on, everything related to international agreements will be done via the application, called BASE.
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