Procurement in SMEs: focus topics and trends in 2024

Focus on digitalization, compliance and sustainable strategies

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In 2024, procurement will undergo a fundamental transformation due to digitalization and increasing compliance requirements. This is significantly changing procurement processes and challenging procurement leaders to adopt innovative technologies and new strategies. This recent report, based on a survey of over 300 suppliers, provides valuable insights into the trends and challenges companies are currently facing. The results highlight the importance of efficient and responsible procurement processes and how leading companies are responding to these developments.

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1. digitalization in procurement: AI, data analysis and cloud solutions

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Modern technologies, in particular artificial intelligence (AI) and automated data analysis, have the potential to increase efficiency and transparency in procurement enormously. The use of digital platforms enables companies to better manage their supplier relationships and make informed decisions. Digitalization offers the following advantages:

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• Central supplier management: A comprehensive Supplier Relationship Management (SRM) system facilitates the collection and analysis of relevant supplier data. This optimizes collaboration and makes it possible to react quickly to market changes.
• Forecasting and cost reduction: AI can recognize data patterns, predict price trends and proactively support purchasing decisions. Automated processes save time and promote strategic decision-making.
• Efficient supplier evaluation: Digital tools enable a precise and time-saving evaluation of supplier performance, which leads to a performance-oriented and quality-based selection.

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2. compliance requirements at a glance: The Supply Chain Due Diligence Act (LkSG), CBAM and co

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Stricter regulations such as the German Supply Chain Duty of Care Act (LkSG) are putting pressure on companies to pursue ethically and legally responsible procurement strategies. Integrated digital solutions simplify compliance management and help companies to consistently adhere to their standards. They offer the following advantages:

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• Centralized monitoring: Compliance guidelines such as Reach, RoHS or CBAM can be better tracked via digital platforms, making it easier to monitor compliance with regulations in the supply chain.
• Risk management: By identifying potential risks in the supply chain at an early stage, companies can take preventative measures and prepare for future regulations. This strengthens the company's position and minimizes legal risks.

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3. Pricing policy and supplier relationships:

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Renegotiating contracts and prices is a key strategy in 2024 to take account of the increased costs of technology and compliance. By working closely and transparently with suppliers, fair prices can be achieved that cover both commercial and compliance requirements. Digital transformation supports these processes by:

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• Data-based negotiation strategies: Digital price analyses and real-time price developments strengthen the position of buyers in negotiations. This transparency enables companies to demand price reductions on a well-founded basis.
• Alternative procurement strategies: Companies that diversify their procurement sources secure a better negotiating position and reduce the risk of supply bottlenecks.

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4. Sustainability and social responsibility in the purchasing strategy

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The trend towards greater sustainability and social responsibility in procurement is no longer just a "nice-to-have", but an essential factor for risk reduction and long-term value creation. Companies that integrate sustainability criteria into their purchasing strategies benefit from:

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• Reduction of potential risks: Sustainability aspects such as environmental protection and fair working conditions reduce the risk of violations and damage to the company's image.
• Close cooperation with suppliers: Transparent goals and fair cooperation enable companies to effectively integrate ecological and social standards into the purchasing process.
• Strategic contract negotiations: Sustainability can be included as an integral part of contract negotiations to ensure that suppliers meet the agreed standards.

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Conclusion: Future-proof purchasing strategies for SMEs

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The challenges in procurement have become more diverse and complex. Companies must increasingly implement innovative and sustainable strategies in order to remain competitive in a digitalized world characterized by compliance requirements. A central key to successful procurement in 2024 lies in the effective use of digital technologies and a clear strategy for compliance with legal and ethical standards. Companies that proactively adapt to these changes will secure a long-term competitive advantage and contribute to a sustainable supply chain.

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Download the full report!

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