In April 2025, I would like to address a topic that I repeatedly encounter in my work with clients: the reluctance when it comes to final commissioning. Particularly in procurement, which as the first link in the value chain has a significant impact on a company’s cost structure, I see great potential that is often left untapped.
The role of procurement
Procurement plays a vital role in every company. As the first stage in the value chain, procurement is not only responsible for sourcing materials and services, but also for optimising costs and maintaining supplier relationships. Through strategic procurement planning, significant savings can be achieved, directly contributing to the company’s competitiveness and profitability.Challenges in the economic environment
In a challenging economic environment such as the one we are currently experiencing, it is all the more important for companies to make use of every available opportunity to work more efficiently and reduce costs. Yet I often see that these opportunities in procurement are not fully leveraged. Instead of pursuing innovative sourcing strategies, many companies continue to rely on traditional methods that are no longer up to date and fail to deliver the desired results.
Why is the potential of procurement not being utilised?
The reasons for this are manifold. On the one hand, there is often a lack of the necessary expertise and resources to develop and implement new strategies. On the other hand, many companies have a culture of risk avoidance that blocks change and innovation. In addition, procurement is often regarded merely as an operational function rather than as a strategic partner that can make a significant contribution to business success.
Leveraging procurement strategically
To unlock the full potential of procurement, it is essential to view this function as a strategic lever. This means that procurement is not only responsible for sourcing but is also actively involved in the development and implementation of corporate strategy. By working closely with other departments, such as production, sales, and finance, synergies can be created and processes optimised.
Effective procurement strategies
Some of the most effective procurement strategies include the implementation of e-procurement systems, the use of data analytics to identify savings potential, and the development of long-term partnerships with suppliers. By digitalising procurement processes, companies can not only reduce costs but also increase transparency and efficiency. The use of data analytics makes it possible to take well-informed decisions and minimise risks. Long-term supplier partnerships help ensure security of supply and enable better terms to be negotiated.