Interview with Dr. Marvin Müller
Efficient, committed, strategic – this is how Kloepfel negotiates with suppliers. The result of this project: 4.76% savings on a $35.8 million volume, despite a challenging market environment.
Marvin, what is your role at Kloepfel – and what defines your negotiation strategy?
I lead the Negotiations division at Kloepfel. Our goal is to develop the best possible negotiation strategy for every situation – individually tailored to market conditions, competition, and client objectives.
A key difference from traditional procurement negotiations lies in our approach: Instead of relying solely on arguments – such as charts on commodity or electricity prices – we focus on clear consequences. In conventional negotiations, the idea is often to “persuade” the supplier using data and analysis.
We take a different path: Even before negotiations begin, we transparently communicate the potential outcomes – whether it’s additional business, a project award, or the loss of market share. What matters is: we consistently follow through on these consequences.
To make that possible, all departments of the client must be involved – from procurement and engineering to marketing and finance. Only when the entire organization supports the measures can we implement them effectively.
At the end of the day, it’s not about how strong my arguments are – but about what I can concretely offer or withdraw from the supplier. That’s what creates true commitment – and sustainable results.
What was the goal of the Supplier Summit in Shenzhen, and how did you approach it?
Our client was looking to reposition itself after some difficult years. The aim was to reassess the supplier base strategically, build resilient partnerships, and realize cost-saving opportunities. The core of the process was a Supplier Summit held on-site in China. The suppliers were transparently introduced to the transformation plans, followed by individual one-on-one negotiations with all relevant suppliers. These sessions were highly structured and always conducted at decision-maker level.
Preparation was key: In collaborative workshops, we analyzed at the product level which alternatives were viable and used this as a basis to define clear consequences.
How do you secure negotiation results for the long term? And what role does the supplier relationship play?
Negotiations are sustainable only when both parties clearly recognize their benefit. That’s why we deliberately avoided pushing for final commitments during the summit. Instead, we gave suppliers time to coordinate internally. Final talks followed later, with the aim of reaching a firm and sustainable handshake.
Importantly, even when it doesn’t seem obvious at first, long-term stability is created through alternatives. The broader the supplier base, the greater the leverage – and the less frequently changes need to be made. Every strategic partnership needs a plan B.
How does Kloepfel address current challenges like geopolitical crises, ESG, and digitalization?
Geopolitical risks are generally addressed at the corporate level. In this particular case, the situation actually worked in our favor: Chinese suppliers were struggling with declining sales in the U.S., which improved our negotiation position in Europe.
ESG criteria, unfortunately, still play a secondary role in practice – most clients remain primarily focused on cost. Digitalization, however, offers us concrete advantages: data analysis and virtual negotiations via Teams have accelerated many processes. We’re also working on a negotiation bot – currently only for micro-suppliers. For larger suppliers, personal interaction is still expected – and required.
Finally, what are the key numbers behind the project – and which Kloepfel teams were involved?
The core negotiation team consisted of four negotiators and two support staff. The negotiation phase lasted about four months. The result: 4.76% savings on a total spend of $35.8 million – equivalent to around $1.7 million. This was achieved despite our client facing declining revenues and having previously renegotiated with suppliers as frequently as every quarter.
The full project involved several units across the Kloepfel Group – including Logistics, IT, Technical Sourcing, and Kloepfel Engineering.
Project figures at a glance
• Negotiation team: 4 negotiators
• Negotiation duration: 4 months
• Savings achieved: $1.7 million
• Total spend: $35.8 million
• Savings percentage: 4.76%
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Contact:
Kloepfel Group
Damir Berberovic
Phone: +49 211 941 984 33 | Email: rendite@kloepfel-consulting.com