In one of my recent interim mandates, I was faced with a classic challenge:
Achieve rapid cost savings – without damaging supplier relationships.
Many companies still view procurement primarily as a cost center. But especially in times of economic uncertainty, procurement is so much more:
it’s a strategic lever for sustainable value creation.
🔍 What did we do?
Instead of simply pushing for lower prices, we worked with the client to develop a new contract structure based on flexibility, transparency, and partnership.
📊 Detailed Results:
✅ 18% direct cost reduction in indirect procurement (mainly IT services and logistics)
✅ 35% shorter lead times for RFPs thanks to an agile sourcing process
✅ 2 new suppliers onboarded with innovation potential – one of them delivered a solution within 6 weeks that had previously been considered unfeasible internally
✅ Improved planning reliability for the sales team through transparent contract durations and clearly defined escalation paths
✅ 0 escalations – instead, a strengthened trust between procurement, internal stakeholders, and suppliers
💬 What I learned:
Procurement can – and should – act strategically. When involved early in corporate planning, it enables solutions that not only save money in the short term but also stabilise operations in the long run.
Why Procurement Is More Than Just Cost Cutting
Procurement today is far more than cost cutting. Strategic procurement empowers companies to innovate, build resilient supply chains, and create sustainable value. Learn how one interim project achieved 18% savings, faster sourcing, and stronger supplier partnerships through transparency and collaboration.
Stefan J. Leirich,
13/10/2025