Procurement Glossary
Controlling in procurement
Controlling in a nutshell:
Controlling is a systematic process for planning, managing and monitoring all procurement-relevant key figures and processes. For Procurement , it enables the continuous monitoring of purchasing performance, cost development and supplier performance as well as the early identification of optimization potential.
You can also read our article on the successful design of supplier strategies! Here you can find out how successful supplier strategies are implemented and what the decisive factors are.
Everything buyers need to know about controlling in Procurement
Everything buyers need to know about controlling in Procurement
Controlling in Procurement enables the systematic management and optimization of procurement activities and therefore makes a significant contribution to the success of the company. This structured overview shows you the most important controlling tools and their effective application for successful procurement management.
Controlling in procurement
Controlling in Procurement is an essential part of modern procurement management and is becoming increasingly important in times of global markets and rising cost efficiency. It encompasses all activities for the systematic planning, management and control of a company's purchasing processes. The strategic orientation of purchasing controlling not only optimizes costs, but also minimizes risks and identifies value creation potential. In this guide, you will learn which tools and methods are used in purchasing controlling and how you can implement them effectively in your company. Both operational and strategic aspects are highlighted in order to develop a holistic understanding of this important management tool.
What is controlling in Procurement?
Controlling in Procurement refers to the systematic planning, management and control of all purchasing-relevant processes and activities. Controlling methods and instruments are used to optimize the Procurement efficiently, reduce costs and achieve corporate goals. The focus is on providing decision-relevant information through key purchasing figures and analyses in order to develop optimal procurement strategies.
Core elements of purchasing controlling
Significance for Procurement
Effective controlling in Procurement is essential in order to realize cost savings and secure competitive advantages. It enables a transparent presentation of purchasing performance and promotes well-founded decisions in supplier selection, price negotiations and risk management. By continuously monitoring and optimizing processes, procurement controlling makes a significant contribution to the company's added value.
Controlling in Procurement: from manual cost control to digital purchasing controlling
Building on the theoretical basis of procurement controlling, it becomes clear how crucial efficient management of procurement costs is for a company's success. In practice, controlling in Procurement enables transparency of cost structures and processes, which can lead to considerable savings potential. However, in order to fully exploit this benefit, a transformation from traditional to modern methods is necessary to meet the increasing demands of a digitalized economy.
Old: Manual purchasing controlling
Traditional approach: In the past, procurement controlling was often based on manual processes and isolated data systems. Reports were produced at regular intervals, often using spreadsheets that were prone to errors. Data collection was time-consuming and decisions were made on the basis of historical data. In addition, transparency was limited as information was not centrally available. This led to delays in decision-making and made it difficult to proactively manage purchasing. Challenges such as a lack of real-time information and limited analysis options limited the effectiveness of this approach.
New: Digital Procurement Controlling
Digital procurement controlling: The modern approach relies on the use of digital technologies to fundamentally improve procurement controlling. By integrating ERP systems and business intelligence solutions, data is collected and analyzed in real time. This enables continuous monitoring of key figures and agile adaptation to market changes. Innovative tools such as AI in Procurement and predictive analytics provide in-depth insights and support strategic decisions. Practical benefits include increased transparency, improved cost control and more efficient processes. This enables companies to optimize their procurement strategy and achieve competitive advantages.
Practical example: Digitalization in mechanical engineering
A medium-sized mechanical engineering company implemented a digital purchasing controlling system that centralizes all relevant data. By analyzing procurement costs, supplier performance and inventory data in real time, the company was able to reduce purchasing costs by 12%. In addition, supplier quality increased by 15% through targeted supplier management. The improved transparency led to faster decision-making processes and significantly increased efficiency in Procurement . These measurable results prove the success of digital procurement controlling and its positive influence on the company's performance.
Conclusion on supplier evaluation in purchasing controlling
Purchasing controlling is an indispensable tool for the strategic management and optimization of procurement processes. The systematic analysis of key figures, as demonstrated in the supplier comparison, enables well-founded decisions and significant cost savings. Through the integration of modern technologies and the consideration of all relevant cost factors, controlling is increasingly developing from a pure cost monitor to a strategic partner of purchasing. Success lies in the balance between effective cost control, quality assurance and future-oriented development of procurement processes.
