Blog March 28th, 2025 Measuring and controlling purchasing success: The synergy of procurement controlling and cost reduction

Thomas Teichmann

In today's economy, procurement is no longer just a purchasing function; it has become a strategic lever for corporate management. Companies that actively measure and manage their procurement performance gain a sustainable competitive advantage. However, procurement success is more than just achieving short-term savings it results from a smart combination of transparency, control, and optimization. This is where modern procurement controlling comes into play, providing valuable insights through structured methods and in-depth analyses. Spend analytics plays a crucial role in this process, as only a clear data foundation allows companies to evaluate cost structures, uncover savings potential, and make informed decisions.

A proven model for managing procurement performance is the five maturity levels of procurement controlling, which help companies systematically assess and develop their procurement strategy:

• Creating transparency: Without a reliable data foundation, procurement remains inefficient. Modern analytics tools provide detailed insights into cost structures, supplier dependencies, and process weaknesses.

• Setting goals: Based on analysis, clear procurement objectives must be defined, such as reducing maverick buying or optimizing the supplier base.

• Managing processes: With KPI-driven dashboards, procurement can be systematically guided and continuously improved.

• Optimizing measures: Sustainable cost reductions can only be achieved through consistent implementation and adaptation.

• Measuring success: Achieved savings must be compared with set goals and used for future optimizations.
  
  

Structured procurement controlling goes through various development phases. First, all relevant procurement data from ERP and other systems must be collected and cleansed. Based on this foundation, targeted analyses can be performed to identify savings potential and process weaknesses. The next step is strategic planning, where specific cost reduction measures are derived. However, strategy alone is not enough—sustainable success is only achieved through consistent implementation and continuous control. Procurement processes must therefore be regularly reviewed and monitored using KPIs. Ultimately, the focus is not just on short-term success but on long-term optimization, providing companies with a genuine competitive advantage.

Revolutionizing Procurement Performance with SCALUE

Whether through self-service or API integration, SCALUE offers the perfect solution for your procurement processes. With our platform, you can analyze data directly from your ERP system or even from Excel spreadsheets. Identify cost-saving opportunities, improve supplier relationships, and increase efficiency —quickly, easily, and transparently.

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Real cost reduction means more than just chasing the lowest prices. Instead, it is about aligning procurement strategies for long-term success. Supplier consolidation, for example, can lead to better negotiation positions, while targeted process automation helps reduce administrative costs. Optimizing contract terms and implementing proactive risk management are also key levers for achieving sustainable savings without compromising supply chain stability.

By combining procurement controlling, structured management methods, and targeted cost management, companies can not only make their procurement more efficient but also use it strategically. Modern spend analytics solutions play a central role in this process, as they create a data-driven decision-making foundation and enable companies to adjust their procurement strategy in real-time. Those who effectively utilize these tools can not only cut costs but also turn procurement into a true success factor within their organization.

How SCALUE can help you? Schedule a free demo

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