How Mid-Sized Companies Can Improve Procurement and Cut Costs

There's a common feeling of being in the middle of something.

Especially for businesses 

You feel like you've come a long way from those days when you were barely a team of one trying to take care of everything at the same time.  

You are also aware that you are still a bit far away from those large companies with hundreds of people working in a single department and complex software.

And for procurement? 

That means an extra challenge.

So wouldn't it be great to learn what makes procurement successful exactly under the context of medium sized businesses?

That's what this article is all about.

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What Makes Procurement Different for Medium sized Businesses?

Well, as we hinted above..

You are in a very unique position, and that sets you for a special set of opportunities and difficulties.

Take a look at your ability to purchase, for example, it's certainly larger than a small business, so you have more power in the market, but at the same time you need to be respectful of the limits of your budget, making cost savings a huge priority.

There's as well, the size of your team, while you probably have expanded from those days of working with only five people,there's a chance you don't have a large procurement team in charge of your purchasing procedures. 

And yes, while you deal with all of that, you are also planning to move to the next stage, so counting on all the requirements to keep expanding at a rapid pace is a must have. 

Technology is, of course, a resource you need to have access to, but in a way that makes sense for your expectations.

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Top Procurement Priorities for Medium-Sized Businesses 

Cost reduction 

Especially important if you are planning on growing, right?

You might be trying to find better prices, benefit from early payment discounts, or just buy in bulk to see if you can save some money. Whatever your approach, the goal is clear.

Be smarter about your purchasing decisions so fewer resources are spent. 

The key is balancing savings with quality and reliability.

Supplier relationships

This is the whole essence of any procurement 101 successful lessons. 

And for businesses who are at that sweet point of being neither small nor big, it's perhaps a bit more important to build strong supplier relationships. It's not just because you can benefit from favourable deals, but also because that's the best way to guarantee that you're working with reliable partners instead of mere providers. If something goes wrong, like an unexpected disruption in the market, you know there's someone who has your back.

Risk management 

And speaking of things that could go wrong…

From unexpected delays to supplier failures, procurement risks are real and costly in more than one way. 

A risk-focused strategy involves different things depending on your industry, but generally? Diversifying your supplier base, setting up backup plans, and assessing all your options before choosing a supplier is common sense to protect your company.

Sustainable procurement 

With climate change becoming a dark part of regular reality, sustainability is now regarded as a logical practice for any business, regardless of size or industry.  

And procurement might play a decisive role in the outcome of your sustainability journey. From the kind of suppliers you choose to the type of packaging your products go in. Every action has an impact, whether on the planet or in our society.

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Procurement Tips for Medium-Sized Businesses 

Supplier segmentation 

Let's be honest 

It's okay to have favourites 

Even among suppliers 

No, but really, not all suppliers represent the same value for your company.  Some might be giving you the supplies you require to keep daily operations running, while others might be fundamental for the development of key products. You could also have suppliers working around the corner or on the other side of the world, and that, of course, has an impact on processes.

Segmenting your suppliers based on different categories like location or value helps you focus your time and energy where it matters most. Once you’ve categorized them, it might be a good idea to keep tabs on performance levels.

Diversification 

Problems can happen overnight, and despite all the preparation, your business could still be affected. 

The solution lies close to diversification.

Working with a limited number of suppliers, even if they're great and loyal, can increase your chances of getting hit by sudden challenges like a natural disaster. 

A good procurement strategy includes supplier diversification and contingency planning. That way, you’re protected if prices spike, inventory is delayed, or regulations change.

Clear purchasing policies 

Emphasis on clear 

Policies shouldn't be a messy list of indications nobody seems to care about.  

As your company grows, informal buying practices can start to slow things down or cause mistakes. Standardizing how purchases are made, who approves what, what tools to use, and when competitive quotes are required is how you keep procurement on the healthy side of things.

Centralized procurement 

It could be a person in charge or a digital platform- more on that in a bit, but having one source from which to gather information when it comes to purchasing and suppliers can certainly make things easier.

Think about it, are you struggling with visibility? Do you have dozens of procurement documents that make no sense? 

Then, it's time to change your approach.

Tech leverage

Who says procurement software has to be complicated? 

Take a look at ControlHub's platform if you don't believe it. 

No, but leaving that self-promotion aside, digital tools can give you the structure of a large company without the overhead. 

With procurement software, you can automate approvals, monitor spend in real-time, and store contracts and supplier details in one place. It also makes tracking compliance and being prepared for audits a walk in the park, well…almost.

Final Thoughts

Procurement is fundamental for the success of any business 

Only if you do it right 

For mid-sized companies, the key is finding the balance between structure and flexibility. With a clear strategy, strong supplier relationships, and the right use of data and tools, you can reduce costs, improve efficiency, and stay ahead of risks, without creating unnecessary complexity.

Whether you’re just getting organized or looking to optimize an existing process, the steps we covered can help you build a smarter, more scalable procurement system that grows with your business.

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