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

22 Aug 2025
22 Aug 2025

Freqens Team

Freqens Team

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:

  1. Demonstrating tangible added value through concrete results

  2. Early integration into projects to maximize impact

  3. Working in tandem with business experts to combine skills

  4. Transforming suppliers into strategic partners

  5. 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.

Ready to optimize your procurement function? Discover how Freqens can help you transform your procurement processes and maximize performance. Our analytics and automation solutions give you full visibility into your indirect spend and significantly improve your supplier negotiations.

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© 2025 Freqens. All rights reserved

Designed by

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