Author Archives: Stefan Dent, Simfoni



Mid-Market Procurement — The Pitfalls of Current Approaches

procurement

Mid-market companies are at a significant disadvantage when compared to larger corporations — a key finding from Simfoni’s analysis of its customers’ procurement and savings delivery capabilities in mid-market companies.

It’s OK to obsess about top-line growth, but what lies beneath is a supply chain that eats into profit since it is not controlled and optimized. Mid-market companies are missing out on at least 5-10 percentage EBITDA points achieved through procurement effectiveness that their larger corporate peers routinely extract.

So why the disadvantage? Essentially the mid-market procurement challenge can be broken into three areas: resources, technology, leverage. Let’s look at each.