For many manufacturing SMEs, 50–70% of the total cost lies in materials. That means even small leaks in procurement can drain margins.
Common gaps we see:
- Buying on urgency, not planning → higher costs
- Relying on single suppliers → price & delivery risks
- Ignoring total cost (transport, defects, lead times)
- Weak vendor benchmarking → no negotiation edge
Smarter practices that work:
✅ Build multi-vendor networks & cluster buying
✅ Plan procurement in sync with production
✅ Measure total cost of ownership, not just price
✅ Use simple digital tools for visibility
✅ Partner with suppliers for long-term stability
At Metserva, our Free Growth Diagnostic often uncovers 5–15% material savings while reducing downtime from supply delays.