Update: Berlin, 17.07.2025 - The global procurement market generally offers companies considerable added value, such as price advantages. For small and medium-sized enterprises (SMEs), however, there are often major hurdles to overcome. Language barriers, country-specific regulations, complex legal frameworks, a lack of market knowledge and more make this step difficult. FACTUREE (www.facturee.de), a specialist in digital procurement, enables SMEs to benefit from the advantages of international procurement markets without having to take the risks.
Challenges of the procurement market in 2025
Important questions & answers
Various challenges are emerging in the procurement market in 2025. The debate surrounding sustainability and compliance requirements has shifted from the "why" to the "how" of responsible purchasing practices. This is because new legislation is transforming voluntary approaches into social imperatives. Companies need to provide concrete evidence for their sustainability claims. Where more reliable data is required, the necessary expertise in the specialist departments is often lacking at the same time. This is because the evaluation requires more complex assessment matrices. Regulatory changes are changing the tech stack in procurement, as manual documentation quickly leads to gaps and risks. Manual processes reach their limits with growing purchasing volumes and increasing supplier diversity. They are not scalable and lead to inefficiency and bottlenecks.
At the same time, the implementation of AI in procurement faces obstacles: ethical concerns, a lack of regulation and purchasing managers' lack of knowledge in dealing with technology. Ultimately, however, the biggest challenges for AI lie in the provision of data, as data availability and data quality are crucial for precise results. For example, the immediate use of generative AI can lead to weaknesses in the quality of the results, which can lead to legal problems or inadequate procurement results.
Hurdles in the global procurement market for German SMEs
For small and medium-sized enterprises (SMEs), entering the global procurement market is often associated with high hurdles. In addition to Language barriers, country-specific regulations, complex legal frameworks and a lack of market knowledge and established networks are pushing many SMEs to their limits due to the economic situation.
The current tense economic situation requiresthat German SMEs position themselves more independently of influencing factors such as geopolitical uncertainties, volatile commodity prices and supply chain disruptions. Procurement strategies that promote flexibility and resilience and therefore also include cross-border purchasing are in demand today and in the future. However, without in-depth knowledge of the procurement market and established networks, SMEs face considerable challenges.
"We have noticed that SMEs in particular are currently very price-driven, which is increasingly motivating them to participate in the international procurement market. This harbors enormous potential, but also uncertainties. Without the necessary experience, many companies literally pay a high price - be it due to quality problems, poor accessibility of manufacturers or regulatory pitfalls that make it difficult to comply with standards, for example. Added to this is the logistical complexity resulting from longer transportation routes, customs regulations and other factors," explains Niklas Oertel, Vice President of Growth at FACTUREE.
Companies often face hurdles right from the start. "Anyone who wants to source internationally and has no local connections usually finds it difficult. Sometimes it already fails at the inquiry stage - some companies don't even receive a reply from the foreign manufacturers. Once they have their foot in the door, it is naturally a lengthy process to build trusting partnerships," says Niklas Oertel.
Current trends in procurement 2025
In 2025, we will see a number of important trends in procurement. These underline the development of procurement from a purely administrative function to a strategic lever for companies. Driven by digitalization, analysis and artificial intelligence, procurement will be digital, data-driven and dynamic. The most important trends in procurement for 2025 are
AI, data analysis and automation are transforming procurement. AI tools speed up analyses, automate processes such as invoice processing and improve forecasts. Cloud platforms and blockchain increase efficiency and transparency. The biggest hurdle is the quality of the data.
Sustainability is moving from a voluntary approach to a legal obligation (e.g. LkSG). Companies must measure carbon footprints and ensure social standards in the supply chain. This requires reliable data and promotes the circular economy as well as new job roles such as sustainability managers.
In the face of permanent disruptions, real-time risk management is becoming mandatory. Companies need to be agile and diversify their supplier base to reduce dependencies. E-procurement systems with early warning mechanisms are crucial to increase the resilience of the chain.
Complete transparency about expenditure and supply chains is becoming a basic requirement. It is essential for proof of sustainability and data-based decisions. High data quality is the decisive basis for the successful use of AI and for strategic monitoring.
Geopolitical tensions are strengthening local procurement. In the public sector, higher value limits for direct orders are leading to a decentralization of purchasing. This increases efficiency, but entails risks in terms of transparency and compliance, which are minimized by digital solutions.
Manual processes are no longer scalable. Standardization is becoming a maturity indicator for professional purchasing organizations to avoid inefficiency. Digital e-procurement platforms enable uniform workflows, approvals and templates for process optimization.
New, specialized roles such as the "Sustainable Purchasing Manager" are emerging. Central procurement offices are changing from pure processing to strategic management and coordination bodies that also monitor decentralized procurement processes to ensure compliance.
One partner - access to all procurement markets
As a digital procurement specialist, FACTUREE is the interface to the global procurement market. The company's digital procurement solution comprises a network of over 2,000 manufacturing partners worldwide. These come from almost all sectors, including CNC machining, sheet metal processing, 3D printing, casting and forging processes as well as surface technology and hardening processes. From the search for suppliers and technical advice through to production, quality assurance and on-time delivery everything is done via FACTUREE.
In order to find the right manufacturing partners FACTUREE also AI methods into the process. The AI analyzes the requirements for the components and specifically selects the best manufacturers. In contrast to traditional tenders, where dozens of suppliers are contacted, FACTUREE makes a selection in advance and only addresses the right players. This significantly reduces the otherwise very time-consuming supplier scouting process.
Niklas Oertel says: "Many SMEs have neither the time nor the know-how and resources to deal intensively with the international procurement market. FACTUREE forms the central interface to the global markets and manages all processes holistically. In this way, we enable outsourcing that exploits the price advantages of international markets - without our customers having to compromise on quality, reliability or legal certainty."
The one-stop shop not only eliminates the barriers to entry into the global procurement market for customers, but also all associated operational, regulatory and legal processes.
Quality, compliance and law are safeguarded
"The main motivator for many companies to enter international markets, namely the price advantage, must of course not come at the expense of quality. On the one hand, we know exactly which manufacturer is suitable for which requirements. All of them have been thoroughly tested and are continuously audited. We pay meticulous attention to ensuring that all processes meet strict quality standards and compliance requirements," says Niklas Oertel. Even if there are quality problems, the customer is not affected. This is because FACTUREE is the customer's sole contractual partner and bears the risk in the event of delivery problems or quality deviations.
FACTUREE customers are also on the safe side when it comes to regulatory and legal matters. For example, when it comes to the question of the place of jurisdiction - i.e. the legally competent place where disputes arising from international transactions are negotiated. The customer also does not have to worry about factors such as international liability regulations or compliance with safety and environmental standards.
Niklas Oertel concludes: "Digitalization has fundamentally changed procurement. If you want to remain competitive, you have to be flexible. And that means being able to operate across borders. This opens up completely new scope for SMEs to grow and position themselves sustainably."
Questions & answers on the procurement market
A procurement market is the part of the market in which companies act as buyers in order to cover their requirements for goods, raw materials and services from suppliers (providers)
The aim of procurement is to secure supplies for the company's own operations. A strategic analysis of the procurement market helps the purchasing department to find the best suppliers in terms of quality, price and reliability and to minimize risks in the supply chain. It is the counterpart to the sales market.
Traditional challenges in the procurement market are primarily manual and non-transparent processes.
The often lengthy search for suppliers, lack of price transparency and long waiting times for offers cost purchasing departments a lot of time. High process costs due to time-consuming bid comparisons and a high supply chain risk due to dependence on a few regular suppliers are further key problems in the traditional procurement of goods and services.
A brief comparison between traditional contract manufacturers and online procurement platforms:
The procurement market for production parts is changing. Traditional contract manufacturers often offer in-depth specialist knowledge and a personal relationship, but struggle with slow, manual quotation processes and limited capacities. This leads to a lack of transparency in purchasing and a high supplier risk.
Online procurement platforms are revolutionizing the market through digitalization. They offer an immediate price comparison after CAD upload and access to a huge network of verified suppliers. This reduces process costs, increases price transparency and minimizes supply chain risk. For companies that want to organize their procurement quickly, flexibly and with data support, they are a modern alternative on the procurement market.
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