Webinar recording: Election, deindustrialization & trade tariffs: Leveraging competitive advantages with 360° supplier management even in uncertain times
published on
5.3.2025
.png)
High energy costs, strict regulations and uncertain markets make purchasing more complex. Are Excel and ERP still enough to keep an eye on prices, risks and compliance? Many companies struggle with manual processes and a lack of transparency - leaving potential savings untapped.
With a centralized data basis, intelligent price analyses and AI-supported recommendations, costs can be reduced and well-founded decisions made. But how can this be achieved in practice? Our experts at Tacto show how modern SRM transforms procurement and makes companies more resilient.
The current economic situation in Germany presents companies with immense challenges. High energy costs, regulatory burdens and a dwindling industrial base are exacerbating the uncertainties for procurement departments in SMEs. However, with targeted measures and strategic digitalization in procurement, companies can not only optimize costs, but also strengthen their resilience to economic turbulence.
In the webinar, Florian Findeis (Product Development at Tacto) and Kendra Benkendorf (Product Development at Tacto) show how this can look in practice.
Germany is going through a difficult economic phase. Gross domestic product (GDP) fell for the second year in a row in 2024. The manufacturing sector is particularly affected, with orders down by 6.3% in December 2024 compared to the previous year. At the same time, unemployment figures are rising, while the Purchasing Managers' Index (PMI) points to a continued contraction in industrial production at 45 points.
Germany is traditionally regarded as an industrialized nation, but a worrying trend has emerged in recent years. Since the 1990s, the manufacturing sector's share of total gross value added has fallen from over 25 % to less than 19 %. There are many reasons for this decline:
The recent election in Germany will have far-reaching consequences for the country's economic policy direction. Irrespective of the actual formation of a government, there is already a cross-party consensus on the need for economic reforms:
Despite these positive signals, experts do not expect any economic relief in the short to medium term. Uncertainties about future trade relations, particularly with the USA, and the further development of energy and commodity prices remain. Companies should therefore not wait for political solutions, but take action themselves.
A recent study conducted by the Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) in cooperation with the management consultancy Advyce & Company shows that the greatest economic burdens for companies are not caused by external factors, but by internal processes and structural costs. The biggest challenges:
This means that companies have it in their own hands to increase their competitiveness by optimizing their internal processes. Digitization offers enormous savings potential, especially in purchasing departments, which are often responsible for 50 to 70 % of total company costs.
In uncertain times, purchasing becomes a key lever for companies to ensure financial stability and competitiveness. This includes four key areas:
Digitalization as a solution: How an SRM system is transforming procurement
Without digital support, most purchasing organizations already have great difficulty in creating the necessary transparency regarding suppliers, prices, contract terms and order histories. This not only slows down efficiency, but also prevents the strategic development of purchasing.
A supplier relationship management system (SRM) can serve as a central platform to bundle all relevant information and optimize purchasing processes:
ME Mobil Elektronik was able to realize savings of €50,000 within three months by introducing an SRM system. Another example is VEMAG, which was able to save €157,000 on B and C parts with the help of a targeted cost driver analysis.
A central data basis as a success factor for purchasing
Many companies fail to digitize their purchasing because they do not have a uniform database. Purchasing data is often distributed across various Excel spreadsheets, ERP systems or local files, which makes effective analysis and control difficult.
With a standardized database, companies can not only manage their purchasing strategy in a more targeted manner, but also automate processes and increase efficiency.
SRM as the basis for price analyses and AI-supported optimization
An SRM system not only lays the foundation for a transparent purchasing organization, but also enables advanced price analyses and AI-supported decision-making. With just a few clicks, detailed comparisons can be created and used directly in supplier negotiations - leading to better conditions and significant cost savings.
The challenges facing industrial SMEs are enormous - but companies have numerous levers at their disposal to actively shape their future. Purchasing is a decisive factor in this: strategic measures and consistent digitalization can not only reduce costs, but also increase resilience and competitiveness.
Instead of waiting for political relief, companies should act now - because the greatest burden comes from their own structures, not from external factors. Investing in digital procurement solutions secures short-term savings potential and long-term competitive advantages.
Political and economic uncertainty is likely to persist in the coming years. Although the rapid formation of a government may lead to more predictability, fundamental economic relief is not to be expected in the short term. Companies should therefore continue to rely on their own initiative and use their procurement as a strategic instrument with targeted digitalization measures. Now is the best time to position procurement as a strategic value creation tool - for resilient and future-proof corporate management
.png)