Procurement Glossary
Controlling in Procurement: controlling and monitoring procurement processes
November 19, 2025
Controlling in Procurement comprises the systematic planning, management and control of all a company's procurement activities. It serves to optimize costs, quality and delivery times through continuous monitoring and analysis of purchasing processes. Find out below what controlling in Procurement means, which methods are used and how key figures are used for strategic management.
Key Facts
- Systematic monitoring and control of all procurement activities to optimize costs
- Use of key figures such as purchasing volume, supplier evaluation and maverick buying rate
- Integration of operational and strategic controlling elements in the procurement process
- Support for supplier management and risk assessment through data-based analyses
- Continuous improvement of purchasing performance through regular target/actual comparisons
Contents
Definition: Controlling in Procurement
Controlling in Procurement refers to the systematic planning, management and control of all procurement-related activities to optimize purchasing performance.
Core elements of purchasing controlling
Purchasing controlling comprises several central components that work together:
- Strategic planning and budgeting of procurement activities
- Operational control through continuous monitoring of key figures
- Control and analysis of purchasing performance by means of target/actual comparisons
- Reporting and documentation for management
Controlling in Procurement vs. general corporate controlling
While general controlling covers all areas of the company, purchasing controlling focuses specifically on procurement processes. It takes into account special aspects such as supplier relationships, price negotiations and supply chain management.
Importance of controlling in Procurement
In modern companies, procurement controlling makes a significant contribution to value creation. It enables data-based decisions, reduces procurement risks and systematically identifies potential savings.
Methods and procedures for controlling in Procurement
Various methods and tools support the systematic management of procurement activities and enable data-based decision-making.
Key figure-based management
The use of specific purchasing metrics forms the foundation of controlling. Central metrics include purchasing volumes, supplier evaluations and cost trends. Cost center reporting enables a detailed allocation of procurement costs to individual company divisions.
Analysis and evaluation methods
Systematic analyses help to identify optimization potential:
- Cost driver analysis to identify the most important cost factors
- Value analysis for the evaluation of products and services
- ABC analysis for categorizing suppliers and materials
Planning and control instruments
Modern planning tools support the strategic orientation of procurement. ROI calculations evaluate the profitability of purchasing decisions, while forecasting methods predict future requirements.
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Key figures for controlling
Specific key figures enable the objective evaluation and control of purchasing performance as well as the continuous optimization of procurement processes.
Financial performance indicators
Central financial indicators measure the economic efficiency of procurement. The purchasing budget is monitored by target/actual comparisons, while savings indicators document realized savings. Order costs per transaction show process efficiency.
Operational key performance indicators
Operational metrics evaluate the quality of the procurement processes:
- Delivery reliability and quality rate of suppliers
- Throughput times of order processes
- Maverick buying rate as an indicator of process discipline
- Supplier concentration and degree of diversification
Strategic performance indicators
Long-term key figures support strategic decisions. Bundling levers measure synergy effects, while innovation rates evaluate the future viability of the supplier base. Risk indicators identify critical dependencies in the supply chain.
Risks, dependencies and countermeasures
Purchasing controlling involves various risks that can be minimized by taking appropriate measures to ensure the effectiveness of procurement management.
Data quality and information risks
Incomplete or incorrect data leads to incorrect controlling decisions. Inconsistent data sources make meaningful analyses difficult and can lead to costly mistakes. Regular data validation and standardized data entry processes minimize these risks.
Overdrive and complexity
Controlling systems that are too detailed can limit operational flexibility:
- Bureaucratic processes slow down procurement decisions
- Excessive focus on key figures neglects qualitative aspects
- Complex systems overwhelm users and reduce acceptance
Dependencies and system risks
Heavy dependence on IT systems harbors risks of failure. Working capital management can be impaired by system failures. Backup systems and manual emergency processes ensure continuity. Regular training enables employees to use the system flexibly.
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Practical example
A mechanical engineering company implements a comprehensive purchasing controlling system to optimize its procurement costs. The company carries out monthly analyses of its most important suppliers and continuously monitors price trends for critical raw materials. By systematically analyzing cost drivers, the controlling team identifies potential savings of 12% for standard components. The introduction of automated dashboards gives management a daily overview of budget variances and supplier performance.
- Implementation of KPI-based supplier evaluation
- Automated price monitoring with early warning system
- Quarterly savings reports to the management
Trends & developments around controlling in Procurement
Digitalization and new technologies are fundamentally changing procurement controlling and opening up innovative possibilities for analysis and management.
Digitization and automation
Artificial intelligence is revolutionizing procurement controlling through automated data analysis and predictive analytics. AI-based systems recognize patterns in procurement data and forecast price developments more precisely. Machine learning optimizes supplier selection and identifies risks at an early stage.
Real-time analytics and dashboards
Modern controlling systems offer real-time monitoring of purchasing activities. Interactive dashboards visualize complex data structures and enable quick reactions to market changes. Price indices are continuously updated and automatically integrated into decision-making processes.
Sustainability and ESG integration
Environmental, social and governance (ESG) criteria are increasingly being integrated into controlling processes. Sustainability indicators complement traditional financial indicators and influence supplier evaluations. Total cost of ownership increasingly takes environmental and social costs into account.
Conclusion
Controlling in Procurement is an indispensable tool for the systematic optimization of procurement performance. Through data-based control and continuous monitoring of relevant key figures, companies can reduce costs, minimize risks and improve supplier quality. Increasing digitalization opens up new possibilities for automated analyses and real-time control. However, successful procurement controlling requires the right balance between level of detail and operational flexibility.
FAQ
What is the difference between purchasing controlling and procurement controlling?
The terms are often used interchangeably, with procurement controlling referring to the more comprehensive strategic approach. Purchasing controlling focuses more on operational aspects such as ordering processes and supplier management, while procurement controlling also includes supply chain management and strategic sourcing decisions.
Which software tools support purchasing controlling?
Modern ERP systems offer integrated controlling modules with key figure dashboards and reporting functions. Specialized procurement analytics tools enable advanced data analyses and predictive analytics. Business intelligence platforms visualize complex procurement data and support data-based decisions.
How often should controlling reports be prepared?
The reporting frequency depends on the size and complexity of the company. Operational key figures are monitored daily or weekly, while strategic analyses are carried out monthly or quarterly. Critical key figures such as budget deviations require continuous monitoring with automated alarms if threshold values are exceeded.
What challenges arise when introducing purchasing controlling?
The main challenges include data quality and availability, employee acceptance and system integration. Inconsistent data structures make meaningful analyses difficult. Change management and training are crucial for successful implementation. The balance between level of detail and practicality requires careful planning.
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