In the oil and gas industry, data is power – and for years, Messer found itself on the wrong side of that equation. Their sole-source supplier held every card: no cost breakdowns, no transparency, and no incentive to negotiate fairly.
Enter True ValueHub.
When Messer partnered with True ValueHub, its AI-native direct material sourcing solution provided an objective, defensible view of costs built on detailed Should Cost modeling in just six weeks.
Prior to partnering with True ValueHub, Alif Patel, Category Manager at Messer admits negotiating with suppliers was a “frustrating experience” due to the lack of factual data they possessed. “We had to manufacture engineering components which were essentially controlled by our supplier,” says Patel. “We relied on them 100% for manufacturing and we had very little factual information to go back and negotiate. In order to negotiate some parts, we would have to push on made-up numbers and we could get one or two percent of savings here and there, if anything at all. But if there was any price increase that happened because of surcharges, we had to accept it because we didn’t have any data to negotiate. It was very frustrating for us.”
Fortunately, Messer found True ValueHub, the leading solution for discreet manufacturing teams to identify direct material cost savings – down to the level of materials, processes, labour, energy, tooling, overhead and profit, packaging, logistics, duties and tariffs. Its AI sourcing agents continuously analyse a company’s portfolio of purchased parts and assemblies to identify market changes in key cost drivers and benchmark supplier competitiveness across more than 60 countries, helping match the correct fit suppliers, manufacturing region and technology.
Gautam Pasari, founder and CEO of True ValueHub, acknowledges this is a common scenario that many manufacturing teams encounter. “Very much so, especially in the area of direct material procurement,” explains Pasari. “There is often no true reference cost for a custom design part. Suppliers have more information than the buyer does on the cost of manufacturing parts and assemblies. The cost can vary from one supplier to another and suppliers know their cost structure better than buyers do. There is a significant information asymmetry between the buyer and the supplier.”
True ValueHub’s tool identifies approximately 30%+ in cost savings for most customers across the mechanical and electro-mechanical categories. “We see customers realising up to 20% in savings,” discusses Pasari. “The numbers can vary based on how complex the category is, higher complexity means higher savings. There is also a monitoring feature, where once the cost models are built, the solution keeps track of the best cost for a part as the market moves up and down. Delivering on more than just a one-time cost savings. The tool also provides insights every month, whether there is money that the buyer is leaving on the table, if the market has gone down, or if there is any kind of risk exposure so that the buyer can lock in the price and not get hit by a price increase from the supplier.”
True ValueHub differentiates itself with a simple and user-friendly UI, where customers can upload their designs and specifications or integrate their PLM and ERP into True ValueHub’s solution to get a full cost breakdown of ‘Should Cost’, ‘Could Cost’ and the ‘Best Cost’ for the individual parts and assemblies. Agents help identify cost savings opportunities and better fit suppliers, run sourcing events and analyse quotes from suppliers. Often, the specifications and designs aren’t 100% complete, True ValueHub’s AI-native solution is structured in a way that it can process even incomplete information. “The first step is that the solution creates a best practice ‘Should Cost’ model with the information provided,” adds Pasari. “Then the same model can be calibrated against the supplier’s cost to identify cost savings opportunities based on where the supplier is located and what type of cost structures they have.”
Upon encountering True ValueHub, Patel admits he was sceptical at first but was won over after Pasari delivered a compelling pitch and Patel examined the data. “What surprised me the most about True ValueHub was the granular information,” he explains. “It came down to the component level detailed cost structures of material, labour, machine, tooling, packaging, logistics, and duties and tariff, and indirect overheads and profit. That’s what really gave us confidence in that particular tool to take the data and negotiate with the suppliers.”
Once Messer had True ValueHub’s solution up and running, the dynamic in the negotiation room significantly shifted. Suddenly, Messer had the necessary data at its fingertips to push back against supplier demands. “Before, suppliers controlled the narrative. It was a take it or leave it kind of deal,” reveals Patel. “But with the ‘Should Cost’ model, it was more collaborative two way discussion about identifying how to take cost out. Patel explains that as a result of introducing True ValueHub to the negotiation process, Messer’s partnerships with suppliers were actually improved. “They could have been defensive about numbers but I think the narrative just shifted,” he tells us. “We had the factual information and now in meetings we can use the updates given to us by True ValueHub to have better, more collaborative discussions with suppliers.”
If there is one key message that Pasari wants to share with procurement leaders, it is that most manufacturing companies are overpaying up to 20% more than they should be for direct materials. “Suppliers have more visibility into the cost of manufacturing the product than buyers do,” admits Pasari. “And most companies don’t know about it. We feel that every CPO should look at their cost structure. They should run a Should Cost, Could Cost and Best Cost model on their direct material spend so that they can see for themselves how much money they are leaving on the table. Now with AI, it is much easier to get cost visibility into the product portfolio. We invite every CPO to try out how Should-costing can help drive meaningful direct material cost savings.”
Last year at DPW Amsterdam 2025, True ValueHub was awarded the Top Innovation Award, emerging as the standout among 150+ contenders of ProcureTech companies. Speaking to us at the time, Pasari commented: “Winning at DPW validates our belief that the era of passive procurement is over. The market recognises that transparency, sustainability, and efficiency aren’t optional – they’re the foundation of competitive advantage.”
The award underscored True ValueHub’s growing impact on manufacturing procurement – empowering organisations to save sustainably, source intelligently, and build resilient, low-carbon supply chains.
Find out more about True ValueHub and Messer here.