In an economic climate where access to financing is becoming more complex and profitability is an imperative, many companies are looking for levers to optimize their costs. Swile’s story offers a refreshing perspective on transforming the procurement function—not as a simple cost center, but as a true driver of profitability. Moving from an EBITDA of -€22 million in 2022 to +€36 million in 2024, Swile demonstrates that an innovative approach to procurement can deliver spectacular results.

Procurement: From a Support Function to a Strategic Business Driver

Swile’s transformation began with a fundamental shift in perspective. As Éric, the leader of this transformation, explains: “Procurement isn’t a department—it’s a business priority. What we brought in wasn’t just a procurement department. And our results aren’t those of a procurement department.”

This holistic vision marks a break from the traditional approach, where procurement is often relegated to an administrative role. At Swile, creating a procurement function was directly tied to profitability, at a time when raising funds was becoming increasingly difficult. This external constraint became the catalyst for a deep organizational transformation.

Context: When Constraint Becomes Opportunity

The scarcity of funding has forced many scale-ups to rethink their models. For Swile, this meant shifting from a growth-at-all-costs mindset to a focus on operational efficiency. Indirect procurement—often overlooked during high-growth phases—became a priority optimization area.

The Decentralized Approach: Making Every Employee a Responsible Buyer

Swile’s major innovation lies in its decentralized approach to procurement. Rather than centralizing all decisions in a single department, the company chose to empower all 200 of its employees.

Shared Responsibility for Budgets

This approach treats every employee as a potential buyer, directly accountable for budgets and expenses. Kevin, a member of the team, emphasizes this collective dimension: “There’s really a collective responsibility for every euro spent by the company.”

This philosophy radically transforms company culture. Instead of a handful of procurement specialists trying to control all spending, the entire organization becomes aware of the financial impact of its decisions.

The Advantages of Decentralization

• Increased agility: Decisions can be made quickly by those who know the needs best

• Greater engagement: Employees feel invested in financial performance

• Enhanced expertise: Each department contributes its specific knowledge of suppliers and needs

  
  

The Purchase Request Process: Anticipating Rather Than Reacting

A key element of Swile’s transformation was implementing an upfront expense approval process—a break from the traditional practice of checking costs only after the invoice arrives.

Approve Before Committing

The purchase request system allows expenses to be validated before they occur. This anticipation brings several benefits:

• Budget visibility: Managers have a clear view of upcoming commitments

• Negotiation opportunities: There’s still time to optimize terms before signing

• Strategic alignment: Every expense can be assessed against company priorities

The Importance of Simplicity

With 200 potential buyers, simplicity is crucial. The process must be smooth enough not to slow business, yet robust enough to ensure the necessary level of control.

A Collective Transformation for Exceptional Results

The results achieved by Swile are remarkable, but it’s essential to understand they are not the product of an isolated department. As Éric explains: “We were here to support a company in its profitability journey. The mandate wasn’t given just to us—it was given to everyone.”

The Numbers Speak

Moving from an EBITDA of -€22 million in 2022 to +€36 million in 2024 represents a €58 million improvement in just two years. These numbers illustrate the massive impact organizational transformation can have on financial performance.

Beyond Cost Savings: Creating Value

This transformation went far beyond reducing costs. It created value at multiple levels:

• Company culture: Building collective financial awareness

• Operational efficiency: Optimized processes and faster decisions

• Innovation: Teams continually looking for better solutions

Lessons for Your Organization

Swile’s experience offers several valuable takeaways for finance and procurement professionals:

1. Rethink the role of procurement

   Procurement should no longer be seen as a support function, but as a strategic performance lever. This shift requires strong executive sponsorship and clear communication of the stakes.

2. Invest in training and support

   Turning 200 employees into responsible buyers requires significant investment in training and guidance. Tools and processes must be designed for non-specialists.

3. Measure and communicate results

   Transparency about results is essential to sustain engagement. Every employee should understand how their actions contribute to overall performance.

4. Adopt a phased approach

   Transformations of this scale don’t happen overnight. Start with pilot projects before rolling out more broadly.

Conclusion: Procurement as a Transformation Catalyst

Swile’s story shows that when procurement is reimagined and integrated into the company’s strategic vision, it can become a powerful catalyst for transformation. The shift from -€22 million to +€36 million in EBITDA is not just a remarkable financial achievement—it’s proof that a collaborative, decentralized approach can generate exceptional results.

For finance and procurement leaders in mid- to large-sized organizations, this experience provides an inspiring roadmap. It shows that with the right approach, the right tools, and—above all—full organizational engagement, it’s possible to turn indirect procurement from a cost center into a true profitability driver.

Ready to turn your procurement into a performance lever? Discover how Freqens can help you optimize your indirect spend and implement effective collaborative processes. Contact us for a personalized demo and start your transformation today.