SMEs form the backbone of the German economy. Companies in this segment are faced with the challenge of making their supply chains efficient and future-proof in order to remain competitive in an increasingly volatile market environment. In recent years in particular, factors such as the pandemic, the war in Ukraine and the associated energy crisis have highlighted the need to establish strategic partnerships and use digital tools to optimize purchasing processes.

What is strategic supplier management?

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Strategic supplier management involves the long-term planning and management of supplier relationships in order to ensure a sustainable supply. This is not just about choosing the cheapest supplier, but finding a partner who is flexible, delivers high quality and can adapt to the dynamic requirements of a company.

The aim is to create more transparency in the supply chain, minimize risks and have a solid basis for price negotiations. This is particularly important for companies in the life sciences, pharmaceutical and mechanical engineering sectors, where quality, speed and reliability are crucial.

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Important criteria for the selection and procurement of suppliers

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When choosing a strategic supplier, buyers in the SME sector should pay attention to a number of aspects:
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• Flexibility and responsiveness: A supplier must be able to react to sudden changes in demand or production plans. This ability was particularly crucial during the Covid pandemic.
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• Quality standards: Certificates such as ISO, Reach or RoHS should be a matter of course. Companies must be able to rely on the fact that the products supplied meet the highest standards.
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• Transparency in price developments: A reliable supplier should be able to disclose the price components and offer a fair calculation. Digital tools such as cost-based analyses and commodity price indices help buyers to verify price increases and take countermeasures.
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• Geographical proximity and delivery times: Particularly with regard to sustainability and compliance with the Supply Chain Act, companies should also consider geographical location and the associated delivery times and ecological footprint.

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Digital transformation in Procurement: a must for SMEs

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The use of digital tools has proven to be essential for optimizing the purchasing process. With software solutions that can be seamlessly integrated into ERP systems such as SAP or PSI Penta, companies can significantly reduce their operational workload. This allows the purchasing team to focus on strategic tasks.

Digital platforms offer the following advantages, among others:
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• Automated master data maintenance: Software can automatically manage certificates and other important documents and ensure that all information is up to date.
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• Data-based price negotiations: With tools that analyze price trends based on commodity indices, buyers can make informed decisions and steer negotiations in a targeted manner.
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• Efficient supplier evaluation: Digitalization allows objective data such as delivery times, complaint rates and supplier quality to be analysed, enabling a well-founded evaluation and selection.

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Best practices for implementation

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1. Gradual introduction of digital solutions: A modular approach enables core functions such as supplier management and price analyses to be implemented first before other modules are added.
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2. Integration with existing systems: The selected software should be able to be linked to the ERP system without major IT effort in order to avoid duplicate data maintenance.
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3. Training and change management: To promote the acceptance of new processes in the company, training and transparent communication about the benefits of digitalization are necessary.

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Conclusion

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Strategic supplier management and digital transformation are not luxury projects, but necessary steps to operate successfully in a globalized world. German SMEs benefit from solutions that are tailored specifically to their needs - efficient, modular and can be implemented without major IT effort. By optimizing their supplier relationships through data-based management, companies create a stable foundation for sustainable growth and long-term competitiveness.

In our webinar: "Strategic supplier management: How Belimed manages its suppliers based on data", we talk together with Zvjezdan Garic, Head of Supply Chain at Belimed Life Science AG, about the successful digitalization of Belimed Life Science's purchasing and how Tacto as a digital tool was able to support this.