Procurement optimisation in service companies
Procurement optimisation in service companies immediately increases the operating margin by reducing indirect costs and professionalising supplier management. As material costs in service industries are often less of a focus than personnel costs, systematic procurement offers enormous leverage for securing liquidity and competitiveness without compromising service quality.
Strategic procurement as a lever for service companies
Unlike the manufacturing industry, service providers focus not on raw materials, but on overhead costs, IT, external personnel, and facility management. Professional purchasing optimisation creates the necessary transparency to identify hidden cost drivers and renegotiate contracts. By pooling requirements and standardising procurement processes, significant savings can be achieved, which directly improve EBITDA.
Key facts for optimisation:
- Holistic transparency: Detailed analysis of all spending categories (marketing, IT, fleet, consulting, etc.).
- Process Efficiency: Digitisation of Procure-to-Pay workflows to reduce administrative overhead.
- Strategic Sourcing: Selecting and auditing specialised service providers for maximum performance.
- Contract Management: Optimisation of Service Level Agreements (SLAs) and Contract Durations.
- Sustainable cost reduction: Implementation of controlling tools to permanently secure savings.
Savings in the service industry of up to 20%
Procurement for profit
The market for services has changed rapidly: high transparency, immense and price-driven competitive pressure, and the short lifespan of competitive advantages. The procurement of these intangible services is now hardly distinguishable from the procurement of industrial or material products. Long-term customer relationships are being replaced by instruments such as e-Procurement, regular tenders, etc. Moreover, in many service companies, purchasing is not consistently centrally organised; rather, the purchasing process typically falls under the responsibility of individual departments. However, cross-departmental purchasing is very inefficient and costly. The cost structure itself, besides personnel costs, is characterised by classic direct and indirect costs (IT, marketing, energy, facilities, etc.). According to the experience of the Kloepfel industry team, savings potential for service providers is up to 20%. Kloepfel Consulting provides you with sustainable economic advantages through systematic optimisation of these costs!
Awarded BEST CONSULTANTS – 10th time in a row
Example Project Outcome (anonymised)
Processed material groups, among others.
Logistics, including courier services, IT, telecommunications, printer management, energy (electricity, gas), auditing, tax consulting, insurance, office supplies, personnel services, printed materials
Example Project Scorecard
Project volume: 80 million Euros
Managed volume: €40 million
Project Team: 2 Consultants
Project duration: 8 months
Services that pay off.
Satisfied customers
„Savings were presented transparently, with the sustainability of the savings being paramount and can also be confirmed as such from today's perspective.“
„It is particularly worth mentioning the very successful performance in bus logistics, as your methodical approach enabled us to generate the best possible result for our company and to eliminate the „cartel“ prevalent in the market.“
„Your communication and presentation to our suppliers were always in the interests of SITA Airport IT GmbH and characterised by a professional and structured approach.“
„Your „outsider perspective“ opened up new horizons for us.“
Would you like to learn more about the topic or do you have other questions about KLOEPFEL Consulting?
Convincing
References
Our industry expertise
Defence
Automotive
Construction industry
FAQ: Important Questions on Procurement Optimisation in Service Companies
Which product groups offer the greatest potential for savings with service providers?
The greatest potential usually lies in indirect costs. These include IT infrastructure and software licenses, marketing and agency services, HR services (temporary employment), travel management, and facility services.
How does procurement optimisation for service providers differ from that for industry?
While industry focuses on material efficiency and logistics, service companies concentrate on optimising service contracts, standardising requirements and reducing maverick buying (uncontrolled purchasing).
When does a purchasing optimisation project become worthwhile?
Professional advice is already worthwhile for an annual purchasing volume in the low seven-figure range, as the savings achieved usually amortise the project costs within a few months.
Will the quality of my own services remain unchanged by cost reductions?
Yes. The goal is not the cheapest, but the most economical solution. Through precise service descriptions and better partner management, quality is often even increased, while costs decrease.
Which role does digitalisation play in the procurement of service companies?
A central role. E-procurement systems and digital approval workflows ensure transparency and prevent incorrect purchases. Furthermore, data analyses (spend analytics) enable a well-founded basis for negotiation with suppliers.