How to Effectively Integrate the Procurement Function into a Tech Company
Between the need to prove its added value and the importance of earning the trust of internal teams, the road to success requires a strategic approach
Integrating a procurement function into a technology company is a unique challenge. Between the need to prove its added value and the importance of earning the trust of internal teams, the road to success requires a carefully thought-out strategic approach. Here’s how Le Bon Coin successfully tackled this challenge.
The Double Challenge of Creating a Procurement Function
Negotiating on Two Fronts
When creating a procurement function in a tech company, you face a reality that’s often overlooked: “There was also an internal negotiation to conduct since the department was brand new. Many people don’t know what procurement is, what it’s for, or the value it brings.”
This highlights a crucial point: before negotiating with external suppliers, you first need to “sell” the procurement function internally. Technical teams, used to their autonomy, may see the arrival of a procurement department as an additional constraint rather than an asset.
Overcoming Initial Preconceptions
In the tech sector—where agility and speed of execution are key—the introduction of a structured procurement process can be perceived as a bottleneck. It’s therefore essential to quickly demonstrate that this function adds value without slowing innovation.
Demonstrating Tangible Added Value
Proof in the Numbers
The key to gaining legitimacy lies in tangible results. As our expert explains: “The simplest way is to show them you bring value. You’ve saved 20%. You’ve saved €20k, and that budget can now be used for something else.”
This pragmatic approach transforms perceptions of the procurement function:
From cost center to profit center
From administrative burden to strategic partner
From innovation blocker to project enabler
Beyond Financial Savings
Added value is not limited to cost savings. It also includes:
Securing additional licenses at no extra cost
Negotiating better contract terms
Ensuring legal compliance of commitments
Optimizing delivery times
Improving service quality
The Crucial Importance of Timing and Integration
Avoiding the “Last-Minute” Effect
Early integration into projects is a key success factor. Arriving late—when technical decisions are already made and budgets allocated—greatly reduces the room for maneuver and reinforces negative perceptions of procurement.
Benefits of Early Involvement
By participating from the initial planning stage, procurement can:
Provide market insights during the design phase
Identify relevant alternatives
Anticipate budget constraints
Facilitate competitive bidding
Optimize specifications
The Duo Model: Combining Technical Expertise with Procurement Skills
A Win-Win Collaboration
Le Bon Coin’s experience highlights a particularly effective approach: “At Le Bon Coin, I relied 100% on the business side. We worked completely as a duo with the business teams.”
This collaboration model offers several advantages:
The subject-matter expert brings deep technical knowledge
The buyer contributes negotiation skills and market insight
Decisions are made jointly, ensuring relevance
The legitimacy of procurement is strengthened through proximity
Building Trust
This collaborative approach requires a genuine relationship of mutual trust. The buyer must understand business priorities, while the technical expert must recognize the added value of procurement expertise.
Turning Suppliers into True Partners
Beyond Transactional Relationships
A modern view of procurement goes beyond price negotiation: “I like having that exchange with my suppliers, who are more partners than suppliers in the end.”
This partnership approach enables:
Co-developing innovative solutions
Receiving personalized support
Gaining early access to new features
Getting enhanced technical support
Keys to a Successful Partnership
To transform a supplier into a strategic partner:
Establish transparent, regular communication
Share goals and constraints openly
Seek win-win solutions
Invest in the relationship for the long term
Training and Empowering Internal Teams
Amplifying Impact Through Training
Training internal teams in negotiation techniques is a powerful lever for amplifying procurement’s impact. This approach allows you to:
Spread a procurement culture throughout the company
Empower business teams
Improve the quality of decentralized negotiations
Build a network of internal ambassadors
Key Skills to Share
Training may cover:
Basics of commercial negotiation
Cost and margin analysis
Contract management
Competitive bidding techniques
Supplier relationship management
Conclusion: Key Success Factors
Successfully integrating a procurement function into a tech company relies on several pillars:
Demonstrating tangible added value through concrete results
Early integration into projects to maximize impact
Working in tandem with business experts to combine skills
Transforming suppliers into strategic partners
Training internal teams to spread procurement culture
Applied consistently and professionally, these elements can turn procurement from a perceived constraint into a true strategic growth partner.
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