5 Procurement Optimisation Strategies for SMEs

Why Procurement Optimisation is Crucial for SMEs

For small and medium-sized enterprises, procurement often accounts for 50-70% of total costs. Yet, many SMEs lack structured processes to systematically leverage this potential.

1. Spend Analysis as a Starting Point

Before you can optimise, you need to know what you are spending on. A professional spend analysis uncovers savings potential and creates transparency across all product categories.

2. Supplier Consolidation

Fewer suppliers mean better terms, reduced administrative effort, and stronger partnerships. Identify strategic suppliers and consolidate volumes.

3. Digitisation of Ordering Processes

Manual orders are time-consuming and prone to errors. Digital Procurement-Tools reduce process costs by up to 60%.

4. Eliminate Maverick Buying

Uncontrolled purchases outside of agreed contracts can account for 10-25% of procurement costs. Clear guidelines and simple ordering channels provide a solution.

5. AI-Powered Demand Forecasts

Modern AI models can identify demand patterns and optimise ordering times – particularly valuable with fluctuating demand.

Conclusion

Procurement optimisation is not a luxury reserved for large corporations. With the right strategies and tools, even SMEs can achieve significant savings. Joker Compass supports you in this with tailored apps and assessments.