Recommendations for action for SMEs in purchasing in times of crisis
published on
30.10.2024
In uncertain economic times, many small and medium-sized enterprises (SMEs) are struggling with falling sales and growing cost pressure. Purchasing is therefore becoming increasingly important in order to secure liquidity and create long-term competitive advantages. Find out how strategic purchasing and the use of a Supplier Relationship Management (SRM) system can help SMEs to stabilize their supply chains and reduce costs.
Economic recessions have a negative impact on a company's entire value chain. For SMEs in particular, which have fewer buffers and resources than large companies, an efficient and strategic approach to purchasing is crucial. Purchasing can cut costs, create financial flexibility and reduce dependencies. Through targeted measures and the use of digital solutions such as SRM tools, SMEs can position themselves to be more crisis-proof and competitive.
A consolidated supplier base offers SMEs decisive advantages: Closer partnerships with strategic suppliers not only create scope for negotiating better conditions, but also provide a stable basis for long-term cooperation. Through multiple sourcing, i.e. the use of several suppliers for critical materials, SMEs reduce their dependence on individual suppliers and can react more quickly to supply bottlenecks.
Advantages of supplier consolidation and multiple sourcing:
- Less dependence on individual suppliers
- Stronger negotiating position due to larger volumes
- Increased flexibility and security of supply
Recommended action: Use an SRM system such as Tacto, which centralizes comprehensive data on supplier qualifications and performance. This enables SMEs to identify potential alternative suppliers at the touch of a button and better manage risks in supply chain management.
Precise analysis of purchasing costs and targeted negotiations are essential in times of crisis to ensure financial flexibility. SRM systems provide a detailed cost overview and offer useful benchmarks to identify potential savings. Direct negotiations with suppliers are particularly advantageous for SMEs, which often do not have the resources for extensive tenders.
Advantages of targeted cost analysis and negotiation:
- Identification of savings potential in core category
- Improving the negotiating position through transparent data
- Flexible payment terms and discounts to protect liquidity
Recommended action: Use an SRM system that integrates current market developments and price analyses in order to approach suppliers with well-founded data and achieve negotiating advantages.
Regional supplier relationships not only offer SMEs shorter delivery routes, but also reduce international dependencies and logistical risks. SRM tools help to identify and evaluate potential local suppliers and provide a central platform to manage availability and delivery times transparently.
Advantages of regional procurement:
- Reduction of logistical risks and shorter transportation routes
- Fast response options in the event of sudden changes in demand
- Supporting the local economy and networks
Recommended action: SRM systems such as Tacto offer search functions and location data for suppliers that make it easier for SMEs to find local alternatives and thus reduce their dependence on international supply chains.
Flexibility in payment and delivery terms is crucial, especially in uncertain times. With structured contract management, SMEs can better monitor adjustment clauses and flexible payment terms and thus react to volatile markets. SRM tools make it easier to store contracts centrally and review terms on an ongoing basis, which enables rapid adjustment to market conditions.
Advantages of flexible contract management:
- Protection against price volatility and financial stability
- Centralized management of contracts and conditions
- Faster response times to changes in the market environment
Recommended action: SRM systems enable digital contract management with customization clauses that protect SMEs in the long term and strengthen partnership-based cooperation with suppliers.
Investing in digital solutions such as an SRM system offers SMEs sustainable competitive advantages. An SRM system digitizes and automates processes in purchasing, which increases transparency and control over the supply chain. By integrating risk analyses and spend analyses, an SRM system enables well-founded decision-making and simplifies the development of a resilient supply chain.
Conclusion: For SMEs that want to survive even in economically turbulent times, an SRM system like Tacto is a valuable investment. It not only offers cost reduction potential and process optimization, but also supports SMEs with the flexibility and resilience that are essential for securing the future. Strategic purchasing decisions thus become the driving force behind the company's success - even in times of uncertainty and challenges.
.png)
