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CIPS-Switzerland Event in Zurich: Game Theory for Enhanced Negotiations

Game theory in Procurement offers operational success and contributes sustainable value to the organisation.

The CIPS-Switzerland event in Zurich on 25 January 2017 saw about 100 decision makers within Procurement attend, with seats booked out way in advance. The event provided the perfect opportunity to convey the merits of game theory.

Head of Corporate Purchasing at Geberit AG, Adriaan ´t Gilde, presented his extensive experience in the application of game theory and work with TWS Partners. In contrast to the CIPS event in London, in Zurich the focus was set on the operational advantages to be gained in the sourcing process using a joint Geberit/TWS Partners case study. The merits of a tailored negotiation design and the integration of cross-functional partners was underpinned using further examples from Geberit projects.

Adriaan ´t Gilde summarised the advantages of game theory with four key points:

  1. It is an innovative approach which perfectly matches the culture of innovation at Geberit
  2. It can be used to create healthy competition between suppliers
  3. You can gain transparency over true market prices
  4. It helps to break up monopolistic behaviour

Our two colleagues, Stephan Knapek und Sebastian Moritz, who have worked with Geberit and Adriaan ´t Gilde for many years, were present at the event. Stephan Knapek explained in his presentation the methodology and reasoning behind the application of game theory in Procurement. He also elaborated on the benefits: impressive results and the opportunity to put Procurement at the centre of the decision making in sourcing decisions.

How game theory and industrial economics can help to reposition Procurement and offer competitive advantage were also touched upon.

If you would like more information about this, or wish to know more about the many possibilities our approach can offer, please click here to download the white paper.

Happy reading!


© Photos by Elaine Pringle Photography

Stephan Knapek

Adriaan ´t Gilde