#Hertz Business with Daniel Gr√ľndler

Worth its weight in gold: contractual certainty in uncertain times

Gladly long-term in the professional environment: contracts between business partners are frequently concluded for several years. This ensures planning certainty.

For many purchasers, the term "contractual certainty" has gained an entirely new importance over the last two years. The same applies for purchasing networks such as INNOPool. Never before in the soon-to-be 25 years of corporate history have the INNOPool members been exposed to such volatility in prices and availability for products and services as they are today. In such times, long-term and, where possible, binding contracts with suppliers and corresponding availabilities are worth their weight in gold.


Daniel Gr√ľndler INNOSourcing

The less binding, the better

In the private sphere, it is well known that long contractual terms are not particularly popular. Whether it is an insurance, mobile phone or fitness studio: the less binding, the better. The situation is entirely different in the business sector: business partners like to enter into long-standing relationships with one another with the same constant conditions. This facilitates a certain planning certainty for both sides, for instance with regard to sales volume and price.

Such contracts with suppliers should of course be checked at regular intervals and, if necessary, renegotiated. But this is extremely time-consuming and depending on the required volume of a product or a service, successful negotiations are difficult, for instance, due to a temporarily low volume. That is why INNOSourcing GmbH was launched in 1998. As the office of the purchasing network INNOPool, it optimises the procurement management for its members. It primarily involves products or services that every company requires to operate. So for instance, office material, IT components or also rental cars. In total, INNOSourcing GmbH has around 100 framework agreements with suppliers from diverse sectors.

"When we negotiate conditions for our more than 60 members in the INNOPool, the aim is to achieve the best possible price and streamlined processes with the pooled volume," explains Daniel Gründler, who acts as the project manager at INNOSourcing. The negotiation position of a purchasing network is substantially better than that of the individual customers due to the larger purchase volume. However, depending on the product or price, even a purchasing network cannot negotiate a price guarantee over a period of years. "Ultimately, everybody is in the same boat. If, for instance, the prices for raw materials go through the roof due to certain global developments or raw materials become scarce, producers and suppliers are directly affected, and that is bound to affect prices."



"In the case of long-term cooperation, suppliers would also supply their contractual partners with priority"


Hertz, a reliable partner

Nevertheless, INNOSourcing strives for long-standing contracts with the providers. There are various reasons for this, as Daniel Gründler explains: "Some suppliers, such as Hertz, grant us a price guarantee for the entire contractual term. Even since rental cars have become scarce due to the chip crisis and the prices have tended to be at a high level, the conditions have stayed the same for our members." With a longstanding collaboration, suppliers would also treat their contractual partners with priority, which is a great advantage, for instance, in the event of supply bottlenecks. "Hertz is also particularly reliable here. Our members are given preferential treatment and receive a car, even when there is no availability in the official rental channel," says Daniel Gründler, praising the network's partner.

Companies also of course benefit from such advantages at Hertz and other reliable suppliers when they conclude contracts with them independently. According to Daniel Gründler, there is another trump card with the purchasing network INNOPool: "The network. At various events, we bring the specialist staff of certain merchandise groups such as the travel managers, together and offer them a valuable transfer of know-how. At these events, the suppliers are also allowed to present new and innovative products or services," he emphasises.



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