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When Costs Get Out of Control: Why Procurement Is Often More Expensive Than Necessary and What Can Help

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.

Key Takeaways

Why Do Procurement Departments Keep Falling Into Old Patterns?

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.