It is no secret that efficient supply chain management boosts business growth, streamlines end-to-end processes, and raises profitability. The supply chain of a firm consists of several processes and one essential process is procurement management.

Procurement management relates to the arrangement of goods and services by a firm from third parties for its business operations, including manufacturing and customer orders. Efficiency in this area can drastically reduce costs and improve the financial performance of companies.

Procurement involves identifying the need to order a product or a service, finding and evaluating potential suppliers, negotiating terms and conditions, and finalizing contracts for goods.

Difference in Procurement Strategies

Procurement operations are different for all businesses due to their varying needs and differences in sizes.

A large business might procure products every day. Retail and online shopping giants perform procurement management multiple times each day.

A medium-sized business might do it on a weekly or fortnightly basis and a small business might procure merchandise once a month.

As per statistics, small businesses spend between 45-65% of sales revenue on the procurement of inputs.

Akin to operations, firms of varying sizes tend to implement different procurement strategies. A large firm is likely to make huge investments in procurement strategies. This kind of company is also expected to have a procurement risk management framework in place to deal with possible lapses.

On the other hand, a medium or small-sized business is not likely to have this luxury because the investment margin of such a company is far lower than a large business.


There are numerous challenges that adversely affect efficiency in procurement. The main challenges faced by firms in this area are listed below.

  • Delays: Bottlenecks in the supply chain of the vendor firm can cause delays in receipt of the ordered merchandise. This can be a cause of huge concern especially if the concerned company is working on tight deadlines. Moreover, disruptions arising from international events such as war, pandemic, or blockage of trade paths should always be considered by companies on both sides of procurement operations.
  • Aversion to technology: Firms lagging in the implementation of the latest technological advancements in their procurement mechanisms are prone to face troubles in procuring merchandise. 
  • Miscalculation: A mistake in data related to procurement can result in undersupply or oversupply of products for a firm.
  • Non-adherence to ESG and compliance laws: Lack of transparency and fulfillment of ESG rules, compliance laws, and other global benchmarks will cause procurement-related challenges for a firm. These problems will stem from lack of trust from the supplier and fear of facilitating a firm that does not meet key standards.
  • Lack of risk management solutions: The absence of risk management tools combined with a low focus on procurement-related threats enhances a firm’s likelihood of procurement lapses.

Efficient Procurement and Business Growth:

Systematic procurement strategies assist firms in effectively meeting customer needs and reducing supply chain risks. Proper procurement mechanisms bolster supply chains of organizations that in turn ensure the sustainability of businesses.

Moreover, having dedicated procurement teams, equipped with the latest tools, lower the cost of operations for companies. Specialized departments consisting of procurement experts ensure that businesses implement best practices in this area.

In addition, efficient procurement strategies enable companies to achieve economies of scale. They also allow firms to operate at their optimum levels and have resilient supply chain procedures.

Finally, effective procurement frameworks drive transparency in the operations of companies and project them as responsible and law-abiding entities.

Dun & Bradstreet’s Procurement Solutions

Being a leader in driving business innovation, Dun & Bradstreet has a diverse selection of products aimed at resolving procurement related issues.

These products are aimed at reducing procurement risk, effective third-party management, supply chain transparency, increased oversight, prior alerts and reporting.

The recently introduced Risk Analytics assists companies with smooth handling of third party entities including procurement management.

To explore the complete catalog of Dun & Bradstreet, visit