The biggest procurement risk
How many organizations still consider price the biggest risk in procurement — while far more costly issues slip through right under their noses?
How many organizations still consider price the biggest risk in procurement — while far more costly issues slip through right under their noses?
In practice, I see that the real procurement risk has long stopped being about the numbers on the invoice. It lies in inefficient procurement processes that quietly—but all the more dramatically—generate financial losses and reputational damage.
Price is visible. Processes are hidden. And that’s exactly why they are more dangerous.
What do companies often overlook?
🔺 delivery delays caused by poor planning and unclear responsibilities
🔺 compliance issues resulting from non-transparent supplier selection
🔺 loss of control over contracts and purchasing volumes
🔺 dependence on “trusted” suppliers without benchmarking the market
🔺 reputational risk caused by service outages or poor-quality deliveries
The result?
A lower price on paper — but higher costs in reality.
That’s why modern procurement management is shifting:
👉 from chasing the lowest bid
👉 to building efficient, transparent, and resilient processes
Companies that understand this today:
✔ save money sustainably, not just once
✔ handle supply chain disruptions far more effectively
✔ protect their brand and customer relationships
Maybe it’s time to ask:
Are we paying more for our processes than for the deliveries themselves?
What hidden procurement risk do you deal with most often?
Price — or the processes behind it?
How many organizations still consider price the biggest risk in procurement — while far more costly issues slip through right under their noses?
In most procurement departments, two worlds collide.
At the end of 2025, LinkedIn procurement influencer Joel Collin-Demers—who uses the social network as a platform to build visibility and reach potential customers—put forward a rather radical idea that sparked discussion across the procurement community (nearly 60 comments). You’ll find a link to the LinkedIn post at the end of this article.
Why is saving money no longer enough? Most of us who started out in purchasing in the last century remember the heroic tales of brilliant managers who managed to reduce costs by tens of percent through a combination of market power, toughness, and cunning. In this golden age of cost killers, purchasing was judged almost exclusively by parameters such as hard savings, acceleration of the purchasing process, reduction of administrative costs, and reducing the number of buyers. Unfortunately, hard savings cannot be made indefinitely.
Return on investment within the first year of project implementation.*
*The ROI estimate is based on real data gathered from our clients and their successfully completed projects.
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