How SMEs can compete with larger corporations in sourcing: practical tips for better procurement deals

Practical Tips for Better Procurement Deals

Here are some strategies and insights for SMEs to unlock better commercial terms

It’s an undeniable business reality that small and medium-sized enterprises (SMEs) often don’t have the same purchasing power as large corporations. However, that doesn’t mean SMEs should give up on negotiating for the best possible deals.

Many businesses mistakenly believe they are too small or their purchase volumes are insignificant.

The truth is, securing the best deals is always worth the effort, no matter your size. There are several strategies SMEs can adopt to consolidate their orders, and even small increases in order volume can result in much better commercial terms.

Here are some tips from Alt-Source to help SMEs succeed in procurement:
  1. Think Outside the “I Am Too Small” Box

It’s essential to categorize your purchases strategically. Instead of buying items like office supplies—such as paper, printer cartridges, and folders—separately, group them into related categories. For instance, combine these products into an “office supplies” category when tendering. This increases the value and quantity of your tender, making it more attractive to suppliers who are likely to offer better commercial terms. This strategy is commonly used by large companies, and we highly recommend SMEs adopt it, regardless of how small their purchases may seem.

While this may require extra effort at first, in the long run, it leads to savings and improved operational efficiency. With fewer orders to manage, you’ll have fewer invoices, deliveries, and communications to deal with.

  1. Attitude is Key

The right attitude can make all the difference in procurement. You are the customer, so act like one! Don’t assume you’re too small or your purchases are insignificant to demand good terms from suppliers. Expect the same respect as any larger company. Be assertive, and never settle for subpar quotes. If you don’t like something—whether it’s the price, lead time, or payment terms—speak up and ask for better. Don’t be afraid to negotiate. Remember, if you don’t ask, you won’t get it. There are plenty of suppliers willing to meet your needs, and if you’re not happy with your current supplier, be prepared to take your business elsewhere.

  1. Procurement is More Than Just a Routine Task

A common misconception is that procurement is simply an administrative task that follows established rules and processes. The truth is, procurement—especially sourcing—requires the right mindset and creativity. While compliance is important, it’s the ability to think outside the box that sets successful sourcing apart.

At Alt-Source, we understand that procurement goes beyond just policies and procedures. Our team adds value through experience, resourcefulness, and innovative problem-solving. We aim to save you time by researching the market and finding the best solutions tailored to your business needs. We make sure that your procurement process is efficient, cost-effective, and results in the best possible outcomes.

Procurement is more than just a task—it’s a strategy for business success.

By adopting the right mindset and taking a proactive, strategic approach to sourcing, SMEs can unlock better deals and improve their commercial terms, even without the purchasing power of larger corporations. At Alt-Source, we are here to guide you through every step of the sourcing process, ensuring you make informed decisions that benefit your bottom line.

Ready to get started?

Contact us for a no-obligation consultation and discover how we can assist you with your sourcing and procurement needs.

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