Your Profit Lies in Procurement.

Speed depends on the starting point: Quick wins (2-4 weeks): Identification of unused SaaS licenses, cancellation of shelfware, cleanup of duplicate subscriptions – immediate cost reduction. Short-term (2-3 months): Optimization of current contracts, renegotiation of upcoming renewals, consolidation of suppliers. Medium-term (6-12 months): Strategic re-tendering, building competition through dual-vendor strategies, implementation of e-procurement processes. Full realization of all potential typically occurs within 12 months with ROI from the first quarter.

The optimal tool depends on company size and complexity: For SMBs (up to 500 employees): Cloud-based e-procurement solutions like Coupa, SAP Ariba or Ivalua with modular structure and fast implementation. For mid-market (500-5,000 employees): Integrated procure-to-pay suites with automated approval workflows, catalog management and supplier portal. For enterprises: Enterprise solutions with full ERP integration, spend analytics and strategic sourcing module. The fastest ROI comes from automated ordering processes and approval workflows – typically 6-12 months to payback. Novartum analyzes your requirements and recommends the right partner.

Entry into sustainable procurement happens step by step: (1) Develop ESG criteria catalog – definition of sustainability requirements for suppliers (carbon footprint, working conditions, certifications), (2) Supplier assessment – integration of ESG scores into supplier qualification and selection, (3) Tender integration – sustainability criteria as evaluation factor in RFPs (e.g., 20% weighting), (4) CO₂ tracking – capture of Scope 3 emissions in the supply chain, (5) Reporting – transparent reporting for stakeholders and compliance (CSRD, Supply Chain Act). Novartum offers a specialized ESG service with which we jointly develop a long-term and robust sustainability strategy for your procurement.

Optimal EA negotiation requires strategic preparation: (1) Timing – Start 6-9 months before expiration, not just at renewal announcement, (2) Inventory – Precise analysis of actual usage (user profiles, workloads) to avoid unnecessary E5 bundles, (3) Reseller margin – Negotiate margin separately ('cost-plus' model) instead of non-transparent flat prices, (4) Price protection – Demand price guarantees for future purchases and cloud migration, (5) Architectural amendments – Use contract adjustments for hybrid scenarios (Azure Hybrid Benefit). Novartum accompanies this process as technical and commercial negotiator – we know the internal targets of Microsoft and resellers.

Operational procurement is transactional: Placing orders, checking invoices, tracking deliveries – focus on process efficiency. Strategic sourcing is value-creating: Questioning needs, analyzing markets, qualifying suppliers, bundling volumes, negotiating framework contracts – focus on cost reduction and quality. The difference in numbers: Operational procurement saves 2-5% through process optimization, strategic sourcing saves 15-30% through better conditions and needs optimization. Novartum transforms your procurement from order writing to strategic value creator.

The gain-share model minimizes your risk and aligns our interests: Structure: Base fee (cost-covering, approx. 30-40% of total fee) plus success premium (60-70%) that only becomes due with verifiable savings. Calculation: Typically 15-25% of achieved savings in the first year. With €500,000 savings and 20% gain-share, you pay €100,000 premium – and keep €400,000. Proof: Savings are transparently documented (before-after comparison, benchmark data). Guarantee: If we find no savings, you only pay the base fee. In 90% of our projects, savings significantly exceed our total fee.

Yes, our Second Opinion Check delivers fast results: Process: Send us the offer (redacted if preferred) by email. Within 48 hours you receive a well-founded assessment. Scope: Market price comparison against current benchmarks, identification of hidden margins and inflated items, analysis of missing protective clauses (price caps, exit rights, SLAs), evaluation of license metrics and compliance risks. Result: Concrete recommendations and negotiation arguments. Cost: The initial check is free. When commissioning negotiation support, the gain-share model applies.

Yes, especially with hardware the savings potential is often underestimated: The problem: System integrators work with mixed calculations – cheap hardware is bundled with expensive services, margins are non-transparent. The solution: Open-book tenders where hardware price and service margin must be shown separately. Direct framework contracts with manufacturers (Dell, HP, Lenovo) bypassing intermediaries. Benchmark analyses against current market prices. Typical savings: 10-15% on hardware, 20-30% on bundled services. Additionally: We check whether the specified hardware specs are actually needed – devices are often oversized.

Maverick buying refers to purchases outside agreed processes and framework contracts – often by departments directly with suppliers. The consequences: Loss of volume discounts (10-20% higher prices), missing compliance and audit risks, non-transparent spending and budget overruns, administrative overhead from individual orders. Countermeasures: (1) E-procurement system with catalog requirement for standard products, (2) Clear procurement guidelines with defined approval limits, (3) Spend analytics to identify off-contract purchases, (4) Attractive framework contracts that are better than direct purchase. Novartum analyzes your maverick buying volume and implements governance structures.

SaaS contracts contain specific pitfalls: Typical problems: Automatic uplifts of 5-10% per year, auto-renewal clauses with short cancellation periods, payment for inactive users (shelfware), rigid contract terms without flexibility. Optimization approaches: (1) Negotiate uplift caps – fix maximum annual price increase (e.g., 3%), (2) Ramping models – payment according to actual usage growth instead of upfront commitment, (3) User cleanup – identify and cancel inactive licenses BEFORE renewal, (4) Cancellation periods – at least 90 days, better 180 days before renewal, (5) Co-terming – align all SaaS contracts to a common renewal date. Typical savings: 20-40% on SaaS renewals.

Critical clauses that are often missing or unfavorably worded: Price protection: Price guarantee for additional purchases during contract term. Uplift caps: Maximum annual price increase at renewals (e.g., max. 5%). Exit clauses: Termination rights for non-performance, M&A or vendor insolvency. SLA definitions: Measurable service levels with penalties for underperformance. Audit rights: Right to inspect invoices and performance records. Data portability: Entitlement to data export at contract end. Liability limitations: Appropriate limits, not at customer's expense. Novartum reviews every contract for these clauses and negotiates customer-friendly wording.

Even with long-standing supplier relationships, competition can be created: Dual-vendor strategy: Qualification of a second provider for critical categories – even without immediate switch, negotiation pressure is created. Develop BATNA: Best Alternative to Negotiated Agreement – credible switching option as negotiation lever. Benchmark transparency: Proof of market prices forces suppliers to justify their conditions. Tender discipline: Regular RFPs (every 3-5 years) even with satisfied relationships. Internal competition: In corporate structures – comparison of conditions between country subsidiaries. Important: Building competition doesn't automatically mean switching. Often the credible option alone achieves 10-20% better conditions.

Procurement is a critical success factor for cloud projects: Before migration: Analysis of existing licenses for cloud usage rights (BYOL, Azure Hybrid Benefit), negotiation of migration credits and transition support, review of termination rights for on-premise maintenance. During migration: Negotiation of reserved instances and savings plans, establishment of FinOps governance (budgets, alerts, tagging), avoidance of vendor lock-in through multi-cloud strategy. In ongoing operations: Continuous optimization of cloud spend (rightsizing, spot instances), regular renegotiation for volume changes, monitoring of compliance and license usage. Novartum combines SAM expertise with procurement know-how for optimal cloud conditions.