Smarter Spending Strategies for SMEs: Procurement Insights

spending strategies

As Beavis Morgan, we recognise the impact of strategic procurement for all business scales. The government recently published a press release congratulating its procurement department on its 10th anniversary for saving taxpayers £3.8 billion last year, underscoring procurement’s power – a strategy not reserved for the big players alone.

While larger enterprises might operate with specialised procurement departments, we believe that small and medium-sized enterprises (SMEs) can also reap the rewards of smart purchasing practices. Here’s how your business can leverage procurement principles for financial growth.

  1. Technology at the Forefront

Modern procurement isn’t bound by department walls; it’s about efficiency. Embrace innovative software and online systems to streamline your procurement. These digital aids offer solutions, such as vendor management and expense tracking, that can help small businesses save big by cutting through repetitive tasks and offering spending insights.

  1. Streamline with Authority

Assign a person or a team to spearhead procurement in your business. This creates a structured approach, setting clear procurement guidelines and introducing checks and balances to ensure policy-compliant purchases. It’s impressive how this simple step can eliminate unnecessary spending and spot cost-saving opportunities.

  1. Cultivate Relationships with Suppliers

Never underestimate the value of a good business relationship. Small-scale businesses have the agility to negotiate favourable terms with suppliers through personalised interactions – be it a business lunch or a thoughtful anniversary gesture. These connections can often lead to exclusive offers and priority treatment.

  1. Seek Innovative Sourcing

Look beyond the conventional. Explore local businesses, e-commerce, or collective buying groups to unlock more competitive prices and diverse offerings. You may find that another business would be happy to pool resources so that together you can meet minimum order quantities that give you a lower price. Or you could explore joining a cooperative buying network.

  1. Training to Empower

Investing in procurement education for your team can lead to smarter spending. Affordable or even free training resources are available that cover procurement fundamentals, supplier assessments, and budget management. Knowledge is power – and savings.

  1. Evaluate and Evolve

Keep a keen eye on your procurement practices by measuring performance. Regular reviews and monitoring can shine a light on potential improvements and further savings, ensuring that your procurement process remains a strong pillar of your business strategy.

Closing Note:

Smaller in size does not mean smaller in opportunity. At Beavis Morgan, we are here to help you harness the full potential of procurement practices to sharpen your competitive edge and fuel business growth. Interested in trimming your procurement costs? Let’s discuss strategies tailored to your business needs.

Contact your usual Beavis Morgan partner or email