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.