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State of procurement in mechanical engineering 2025

The comprehensive study on challenges, trends and opportunities for strategic buyers

200+

Interviews

40+

Interviews

10

Top challenges

200+

Current data
EXECUTIVE SUMMARY

The 5 most important findings

Procurement in mechanical engineering will be at a turning point in 2025

1st AI adoption: the big leap is imminent
Only 25% of the companies surveyed currently use AI in procurement - but 187% growth is expected over the next 18 months. The discrepancy between ambition and reality is enormous.
2 LkSG compliance: from obligation to opportunity
79% of purchasing managers see the Supply Chain Duty of Care Act as the biggest challenge. However, only 34% have implemented automated processes. Fines of up to 2% of annual turnover are threatened.
3. data ownership: the underestimated problem
67% of buyers do not have direct access to their own data. Finance owns the ERP, IT controls the architecture - and Purchasing "begs for Excel exports".
4. supplier development: evaluation is not enough
82% of companies regularly evaluate their suppliers, but only 23% have structured development programs. The opportunity to turn good suppliers into excellent partners is being wasted.
5 Circular procurement: the next frontier
Only 12% of the companies surveyed have systematically implemented circular procurement. Yet there is enormous potential here for cost reduction and sustainability goals.

Recommendation for action

The most successful purchasing organizations in mechanical engineering are characterized by three features:
CHAPTER 1

The top 10 challenges

Prioritized according to frequency of mentions

Rank
The challenge
% mentions
Trend vs. 2024
1
LKSG compliance & ESG reporting
79%
+12%
Lack of data transparency
67%
+8%
2
Supply chain relliance
64%
-->
3
Skills shortage in purchasing
58%
+15%
4
Fragmented IT systems
54%
+5%
5
Manual processes
52%
-3%
6
Lack of AI expertise
48%
+18%
7
Supplier development
43%
+7%
8
Scope 3 Decarbonization
41%
+22%
9
Circular Procurement
38%
+11%
10
79% of purchasing managers cite the Supply Chain Duty of Care Act as the biggest challenge. The consequences of non-compliance are drastic: fines of up to 2% of annual turnover, exclusion from public tenders and reputational damage.

However, only 34% have implemented automated compliance processes. Most companies are still working with manual Excel-based risk analyses - a huge risk.
CHAPTER 2

AI adoption in purchasing

The status quo and the 5 most important use cases

25%

currently use AI in purchasing

187%

Growth expected over the next 18 months

92%

see AI as important for the future

18%

have basic AI knowledge in a team

The 5 most important AI use cases

1. spend analysis
Use today:
15%
2. supplier risk assessment
Use today:
12%
3. price forecasts
Use today:
8%
4. contract analytics
Use today:
6%
5. demand forecasting
Use today:
11%
Potential: High
Planned 2026
68%
Potential: Very high
Planned 2026
72%
Potencial: Medium
Planned 2026
45%
Potential: High
Planned 2026
52%
Potential: High
Planned 2026
58%

Case study: AI-supported spend analysis

Machine tool manufacturer (2,400 employees) - From 3 weeks of manual work to 2 hours of automated work

-83%

Time expenditure reduced

94%

Categorization accuracy

2,3M€

Savings potential identified
CHAPTER 2

Benchmarks & KPIs

Where do you stand in comparison?

KPI
Stragglers
average
Top performer
Purchase quota
>65%
55-65%
50-55%
Number of suppliers
>800
450-650
300-400
Supplier loyalty (Top 20)
<50%
60-70%
75-80%
Maverick Buying
>30%
15-25%
<10%
LKSG automation
0%
34%
70%+
AI use
0%
25%
60%+
Supplier development
0%
23%
60%+
Circular Procurement
0%
12%
40%+

Level 1

Reactive

15%

Level 2

Transactional

35%

Level 3

Strategic

30%

Level 4

Integrated

15%

Level 5

Future-oriented

5%

Benchmarks & KPIs

Find out how the Simmeth SC Manager can transform your procurement - with data ownership, automated LKSG compliance and AI-supported insights.
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