Digital procurement: efficiency for mid-sized firms

5 min read

Purchase orders, invoices and supplier data often pass through several people and systems in procurement. Digital procurement addresses these handovers: it can bring information together and support recurring steps. In the 2026 procurement barometer, 64.8 per cent of respondents cite a lack of time and staff resources as the biggest obstacle to digitalisation. For mid-sized companies, an approach that fits their processes and capacity is therefore essential.

Where procurement teams see a need for digitalisation

For the 2025 procurement barometer for mid-sized companies, Onventis, the German Association for Supply Chain Management, Procurement and Logistics and ESB Business School surveyed more than 350 procurement managers from European companies. According to the association’s summary, one in four companies surveyed used a digital platform to collaborate with suppliers. The result describes the companies surveyed and cannot readily be applied to the German Mittelstand as a whole.

The study page for the 2026 edition continues to identify supplier management as a priority: 70.1 per cent of respondents see the greatest need for digitalisation in this area. A lack of time and staff resources is cited as the biggest obstacle by 64.8 per cent. The figures show where participants see needs and difficulties. On their own, they do not demonstrate savings from using a platform.

What is digital procurement? The term describes the use of digital tools for procurement tasks. These can include finding and selecting suppliers, placing orders, approvals, checking invoices and analysing purchasing data.

Start with orders and invoices

One possible starting point is the process from purchase requisition to payment. This area is often referred to as purchase-to-pay or P2P. Before choosing software, it is worth documenting who raises a requirement, who approves it and how the purchase order, goods receipt and invoice are brought together.

A clearly defined product category or recurring procurement activity is suitable for an initial test. The company sets out what information a requisition must contain, who can approve it up to which amount and how exceptions are handled. Metrics agreed in advance help with the assessment: for example, the time between requisition and order or the number of invoices that need reworking because information is missing.

Whether a change is economically viable depends on factors including the volume of orders, implementation costs and the effort required from those involved. No universal payback period can be derived from these factors.

Bring suppliers and business departments on board

A platform can serve as a shared workspace only if the relevant suppliers and internal teams can use it. Before implementation, procurement and IT should therefore check what data is already available, who maintains it and how suppliers submit changes. This includes, for example, contacts, payment terms and current contracts.

Purchases made outside agreed procurement channels can also be addressed more effectively when the reasons are understood. Are suitable items missing from the catalogue? Does approval take too long? Or are business departments unfamiliar with the agreed process? The answers help companies adjust the rules and the tool together.

When selecting a provider, interfaces with existing systems are relevant alongside licensing and implementation costs. Companies should also establish how suppliers will be connected, which data can be exported and how much effort a later switch would involve.

Evaluate AI for limited tasks

AI tools can help procurement teams, for example, by preparing information from quotations or contracts for review. Companies should test whether this saves time in their particular process using their own documents and a transparent comparison. Expert review remains important because a summary can overlook information or attribute it incorrectly.

Before a test, three questions need answering: Which documents may the tool process? Who checks the result? And what action may the system initiate on its own? Approvals and responsibilities should be defined for prices, contract terms and purchase orders. This allows a use case to be assessed on its results before further tasks are added.

Frequently asked questions

Image source: AI-generated (November 2026)

Translated from the German original using artificial intelligence. The German version is authoritative.