UK SMEs could save £106 billion if they shopped around for better deals, according to research by Tungsten Network.
28 per cent of business decision makers surveyed by Tungsten said they could save between £5,000 and £20,000 with ‘smarter procurement’. 15 per cent thought they could save up to £50,000.
Averages of these figures show that each SME could save around £20,000 annually, multiplied across the UK’s 5.4million SMEs this comes to £106billion in total savings.
“If British SMEs could realise even a small percentage of the estimated savings identified in the report, profitability would soar and working capital as well as cash flow would be significantly improved, allowing businesses to be more agile and flexible,” said Richard Hurwitz, CEO at Tungsten Network. “With a clear procurement strategy, the potential savings are considerable and this research just highlights the value of having good market intelligence.
“Smarter procurement would enable the UK’s SMEs to invest more capital back into their business, so they are prepared for whatever opportunities or risks may come their way. In an age where finance can be hard to come by, bringing efficiencies to the procure-to-pay work stream can be a value enhancing initiative. As SMEs make up 99.9 per cent of all private sector businesses in the UK, the impact on the economy would be considerable.”