The German Chancellery is replacing old chairs—costing €4,000 each. The internal cost of a pot of coffee exceeds €60. Stories like these make not only controllers but also anyone with common sense shake their heads. Symbolically, Herbert Diess, former CEO of Volkswagen, once brought his own coffee machine (“Handelsblatt,” 2022). But the central question remains: Does procurement have to be this expensive? The answer is clear: No, it does not. But why is it? Many companies fall into habitual routines—this also applies to procurement. Orders are placed with the same suppliers that have always been used, even when prices increase.
One of the main reasons is lack of time. Identifying new suppliers requires resources that are often simply unavailable. Additionally, legal requirements such as the German Supply Chain Due Diligence Act increase administrative effort. However, inefficient routines are not just a matter of time but also of transparency.
"It is shocking how much savings potential is lost in companies," says Aiko Wiegand, founder of the AI startup Matchory. Well-connected in procurement, Wiegand describes weeks-long Google searches and trips to Asia to find new suppliers.
However, Google is not an ideal search engine for procurement processes. Results are often influenced by paid advertisements or SEO-optimized content, leading to inefficient and non-transparent searches. To address these weaknesses, Wiegand founded Matchory, an AI-powered supplier search engine. The tool guides users through seven questions—ranging from the desired product to necessary certifications and specific regions. Within five minutes, the AI generates an initial list of potential suppliers. Buyers can easily adjust filters such as alternative materials or geographical locations. Results can be shared directly within the tool for joint evaluation—eliminating the need for inefficient Excel spreadsheets.
Matchory’s advantages are evident in practice. For example, Reifenhäuser reduced procurement costs by up to 50% using new suppliers. An energy provider discovered that a patch cable, previously sourced under a well-known brand name, was 40% cheaper from alternative suppliers in Asia. These savings are not only attractive in the short term but also contribute to long-term competitiveness. Companies can better manage risks such as geopolitical crises or new trade tariffs by diversifying their supply chains.
In times of stagnant incoming orders and geopolitical uncertainties, cost optimization in procurement can be crucial. Reducing procurement costs can help companies meet annual targets even when revenues stagnate. At the same time, diversifying supply chains provides protection against geopolitical crises and trade tariffs. More efficient processes and lower costs also strengthen long-term competitiveness.
Many companies have yet to fully recognize the potential of digital transformation in procurement. However, with tools like Matchory, businesses can not only cut costs but also minimize risks and save resources. Companies that invest in transparency and efficiency today secure their economic agility for the future.
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