Objectives: shortened sourcing in procurement and accelerated time-to-market
FACTUREE procurement study: 26% of companies see high effort in supplier coordination as an obstacle
Berlin, July 4, 2024 – 26 percent of companies complain about the high effort required to coordinate their suppliers when procuring components. They consequently desire less complexity, shorter sourcing processes, and risk minimization through supplier bundling or backup suppliers. This is the result of a representative market research study of 418 participants commissioned by FACTUREE (www.facturee.de).
Sourcing is becoming increasingly demanding for industrial buyers as the complexity and scope of procurement processes continue to rise. Supplier reduction, simple communication channels, and good advice are therefore highly valued by buyers and engineers. This is also emphasized by the study conducted by the market research firm Caspar-Feld on behalf of FACTUREE in May 2024. The study indicates that 26 percent of the 418 respondents criticize the high coordination effort due to too many suppliers. Additionally, 16 percent complain about a lack of personal contact and hard-to-reach contacts. About 28 percent are under significant cost pressure. The survey asked respondents to name the three biggest pain points when purchasing components.
Shortening sourcing processes through innovative manufacturing services
Bundling suppliers through innovative manufacturing services can eliminate these bottlenecks by significantly shortening sourcing processes. By consolidating manufacturers through a single provider, not only can costs be optimized, but communication can also be greatly simplified. With a provider like FACTUREE, customers who need a component receive everything from a single source: supplier search, technical consultation, manufacturing, post-processing, and surface finishing. This saves time and costs as all steps are coordinated through a single interface. A dedicated contact person is available for advice, just like with a local subcontractor – an aspect highly valued by many buyers and engineers, as the FACTUREE study shows.
“By collaborating with us, companies can quickly and efficiently access a wide range of manufacturing capacities without having to conduct time-consuming and often complex supplier negotiations. Our digital approach simplifies all processes, from inquiry to order to delivery. A key advantage is the complete processing, where all manufacturing steps – from initial production to post-processing to surface finishing – are handled by a single provider. This method avoids handovers between different service providers, thus simplifying coordination, reducing communication efforts, and facilitating quality assurance,” explains Niklas Oertel, Vice President of Growth at FACTUREE.
Staying operational and developing innovations more efficiently
Unlike traditional subcontractors, FACTUREE can easily balance demand fluctuations and supplier failures. With nearly unlimited capacities, delivery availability is guaranteed at all times – even in times of high demand and general crises. This risk minimization helps companies to strengthen their resilience. FACTUREE has an extensive network of over 2,000 manufacturers in almost all areas, including CNC machining, sheet metal processing, 3D printing, casting and forging processes, as well as surface technology and hardening processes. This ensures that the right solution is always available. For buyers and engineers, this represents significant relief in sourcing, allowing them to advance strategic projects and innovations more efficiently.
“An efficient system is characterized by lean and detailed procurement processes. Our procurement software identifies the optimal supplier for each requirement with the lowest complaint rate, ensures uniform quality standards, and minimizes delivery failures. This significantly accelerates time-to-market and ultimately increases the innovation power of companies. By partnering with FACTUREE, companies can make their development processes much more efficient while optimizing their costs,” says Niklas Oertel.
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