Procurement
Material costs are key to profitability. Even small procurement gains matter. Working alongside you, EFESO applies proven procurement practices to uncover savings – fast, collaboratively, and through to delivery – turning cost pressure into measurable value
Deep Dive into our Service Offerings
Protecting Margins in a High Pressure Climate
Procurement leaders today face pressure from all sides: rising material and freight costs, volatile supplier performance and the growing demands of ESG compliance. Daily firefighting leaves little space for transformation. And with material costs often exceeding 50 percent of total spend, there’s no room for missteps.
What’s at stake? Each disruption puts margins, delivery performance and competitiveness at risk.
EFESO is on your side to face the pressure. We work alongside your teams to make procurement smarter, faster and more resilient, connecting strategic sourcing, digital tools and supplier development. Together we move your procurement function from reactive cost control to proactive value creation, making it a driver of sustainable performance.
Real Results Achieved with our Clients
-20%
Decrease in commodity spend
-30%
Reduction in product costs
-15%
Reduction in supply chain costs
A Tailored and Pragmatic Approach that Fits your Reality
We embed analytics, category strategies and automation directly into your procurement operations. From AI-driven risk alerts to negotiation playbooks and supplier scorecards, your teams gain lasting capabilities through hands-on coaching. Together, we drive cost efficiency, supplier resilience, and ESG compliance.
We help you operationalize strategic priorities, balancing savings with innovation and risk management, so procurement evolves from reactive function to performance driver. The result: smarter sourcing, measurable impact, and a procurement team that's equipped for what's next.
To strengthen procurement excellence, and with it, overall competitiveness, seven trends must be addressed and mastered:
Cost Efficiency & Inflation
Cost efficiency remains the dominant challenge.
Technology & Digitalization
What was still in pilot mode in 2024 is becoming operational reality in 2025.
Resilience & Risk Management
After peaking during the post-COVID and Ukraine crises, risk management has stabilized.
ESG & Sustainability
The Supply Chain Due Diligence Act of 2024 created significant implementation pressure
Supplier Collaboration & Innovation
Close collaboration with strategic suppliers continues to drive success
Procurement as a Strategic Partner
Procurement is evolving from a reactive function into an active value driver across the value chain.
Talent & Skills Development
Once underestimated, talent is now a bottleneck.
The State of Generative AI in European Procurement
With 95% of organizations planning projects in 2025, the real challenge isn’t catching the AI train, but choosing the right one. Yet only 15% of procurement-led AI projects meet their goals. Our EFESO European Survey on generative AI highlights where the real value lies, the risks to address, and the strategic imperatives for sustainable competitive advantage.
Cost Efficiency & Inflation
Cost efficiency remains the dominant challenge. Persistent volatility in raw material prices, rising energy costs, and inflation-driven wage pressure are forcing organizations to manage total cost of ownership more rigorously. Approaches such as zero-based budgeting and global tendering are becoming increasingly important.
Technology & Digitalization
What was still in pilot mode in 2024 is becoming operational reality in 2025. AI-based forecasting, automated negotiation support, and eProcurement platforms are shifting from optional to mandatory. Data quality and seamless system integration are now critical.
Resilience & Risk Management
After peaking during the post-COVID and Ukraine crises, risk management has stabilized. Many companies have implemented nearshoring and dual-sourcing strategies. Yet the issue remains pressing, fueled by volatile customer demand and fragile Tier 2 networks.
ESG & Sustainability
While the Supply Chain Due Diligence Act of 2024 created significant implementation pressure, the new German government has already announced rollbacks and simplifications for 2025. Short-term urgency may be easing, but long-term sustainability goals remain firmly in place.
Supplier Collaboration & Innovation
Close collaboration with strategic suppliers continues to drive success – especially in developing new technologies, alternative materials, and process innovations. Early supplier integration and digital SRM tools are gaining importance.
Procurement as a Strategic Partner
Procurement is evolving from a reactive function into an active value driver across the value chain. In many companies, procurement is now embedded in product development and strategic decision-making.
Talent & Skills Development
Once underestimated, talent is now a bottleneck. Digital fluency, strategic thinking, and technical expertise are critical differentiators. A shortage of qualified specialists is hitting hard, creating demand for targeted training and innovative recruiting approaches.
Procurement Client Results
-15%
Reduction in indirect purchasing costs
Automotive and Commercial Vehicles
Private Equity
Industrial machinery manufacturer faced complexity in custom equipment production. We implemented modular design principles, standardized components, and optimized project management, reducing lead times by 40%.
€2.7B
Total savings achieved
Automotive and Commercial Vehicles
Automotive supplier needed profitability improvement for complex drive components. We established end-to-end value optimization, supplier collaboration, and cost engineering, improving margins across entire value chain.
8-10%
Transformation cost reduction achieved
Aerospace & Defense
Aerospace corporation faced fragmented digital infrastructure across divisions. We launched enterprise-wide transformation, integrated systems, and drove operational excellence, reducing operational costs by 10%.
The EFESO Touch
For over four decades, EFESO has transformed procurement at 500+ global manufacturers, including 7 of the top 10 automotive companies. Our 120+ procurement specialists bring expertise from 1,000+ negotiations, having achieved €4 billion in verified savings.
Working directly within your procurement operations, from category workshops to live supplier negotiations, we focus on tangible results. Our strategic sourcing accelerator combines real-time market intelligence with proven negotiation playbooks that consistently deliver 8-12% in sustainable cost reductions. Through hands-on coaching, your buyers master advanced techniques including should-cost modeling, supplier risk scoring, and dynamic category strategies.
Clients choose EFESO because measurable results come with lasting capabilities. Your procurement function emerges stronger, equipped with predictive analytics, tested methodologies and the confidence to convert market volatility into competitive advantage.
1000+ Negotiations with suppliers
€4B savings realized
50+ Return on capital (RoC) generated
Meet Some of our Procurement Team Members
Ready to Drive Procurement as a Strategic Advantage?
- Cut significant spend while suppliers thank you
- Stop treating procurement like paperwork processing
- See how strategic sourcing funds entire transformations
Related Insights & Events
This survey on generative AI in European procurement offers valuable takeaways to boost efficiency and unlock strategic value.