Procurement and Sales Integration

What happens when procurement and sales come together? 

Procurement and sales are often considered opposite sides of business, but in fact, we cannot look at them separately because one does not work without the other. In practice, it often happens that they act as ‘competition’ to each other, that is, their strategies ‘collide’. These two business processes are interconnected and if they work in such a way, the company can certainly get the most out of the whole story.

Procurement and sales are two pillars of any successful business, and their integration improves the efficiency, profitability, and competitiveness of the company. It is important to understand their core, and where their ‘points of contact’ are, there should be an opportunity to connect them. We can say that profit begins with procurement and ends with sales, and both parts are equally important. In this blog, we will explore the advantages of their synergy and how to unite them to function ‘as one’.

Why should we work on connecting procurement and sales?

You will understand the market and customers better

When procurement and sales have good cooperation, information is transferred faster and more efficiently. Sales are then better informed about product availability, pricing, and procurement conditions, and procurement can better understand market needs and customer requirements. In this way, the company reacts more quickly to changes and can offer products or services that correspond to the real needs of the market.

You will distribute your costs smarter

Good coordination reduces a lot of unnecessary costs, such as the problem of too many stocks and the like. That’s why by connecting procurement and sales, you can only further reduce costs. This can be, for example, a situation where procurement negotiates better prices, and sales reduces marketing costs. Likewise, procurement will achieve much better results in negotiations with suppliers and agree on better prices and conditions. For example, sales often have direct contact with customers and insight into their needs and preferences, so procurement can adjust its strategies following this information.

You will have higher quality products and services

By working together, a better balance between price and quality is achieved. Based on feedback from sales, procurement will acquire better quality raw materials and products, and sales will present their value to customers. Also, by better cooperation with suppliers and understanding of customer requirements, higher quality standards are set, which leads to more satisfied customers and better business results.

You will manage your inventory better

By linking procurement and sales, you will manage inventory better because procurement can then better assess sales needs and maintain a balance between supply and demand. This prevents overstocking or product shortages. Thus, both procurement and sales can better predict the needs of the market and match the quantities of stock with the actual needs. This reduces storage costs and the risk of obsolete or unnecessary stock.

You will be able to react to changes faster

By working together and with a better flow of information, it is easier to spot opportunities and challenges in the market. For example, if sales notice a change in customer needs and immediately inform procurement about it, the company can react more quickly to new trends, competition, and changes in customer needs. Competition in the market is fierce, and those who react faster to changes have an advantage.

You will increase the efficiency of the process

Procurement and sales often have similar processes, such as negotiating with suppliers, ordering products, and tracking deliveries. That is why the greatest efficiency is achieved when these processes are united. Automating the process reduces manual data entry and the risk of errors, making it an ideal combination for the entire business.

How can you connect procurement and sales?

  • Align strategies: Align marketing strategies with procurement to offer the right product or service at the right time.
  • Communicate regularly: Organize regular meetings as these meetings can be an opportunity to share information about customer needs, market changes, and challenges both parties face.
  • Improve information sharing: Introduce tools to share information about inventory, turnover, and market changes between purchasing and sales departments.
  • Introduce common goals and rewards: Set common goals that encourage collaboration, for example, reward both sides for achieving specific goals.
  • Coordinate with market changes: Be flexible and adaptable to respond quickly to market changes. Regularly jointly analyze and communicate market trends and customer feedback so that supply always matches demand.
  • Educate employees: Educate procurement and sales about new products, technologies, and market trends, employees in both functions should have the necessary skills and knowledge for good cooperation.
  • KPI monitoring: Define common KPIs and track them to evaluate the procurement and sales integration effectiveness.
  • Establish a risk management system: Identify common risks and make plans to manage them (eg raw material price fluctuations, supplier issues, market turnover).
  • You simply work on continuous improvement: There is no one-size-fits-all solution for unifying procurement and sales. Therefore, monitor, communicate, and analyze regularly to identify opportunities to improve relationships and cooperation wherever you see an opportunity.

The integration of procurement and sales is the key to success for modern companies. The company can achieve better business results through a better understanding of customer needs, cost reduction, and improved product quality. Creating synergy between procurement and sales requires effort and dedication, but it is certainly worth it in terms of increased competitiveness and profitability. In practice, while procurement and sales are often viewed as opposing sides, they are interdependent and can only achieve extraordinary results through joint efforts. These functions are not just separate parts of business; they are a shared ‘engine’ that drives the company toward success.


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