Many SME CFOs think: 'Our procurement needs support – let's hire another buyer.' For companies with <€10M volume, this is the most expensive decision you can make. Here's why.
The CFO's Thought Process
CFO conversation with procurement manager:
Buyer: 'I'm overwhelmed. I can't keep track of everything – risks, compliance, savings, supplier search.'
CFO thinks: 'Okay, we'll hire another person. Problem solved.'
This is the most expensive mistake for companies with procurement volume under 10 million euros.
And here's why.
Scenario: The Small to Medium-Sized Company
Size class:
- Procurement volume: €5-8 million/year
- Employees: 80-150 people
- Procurement team: 1-2 people
- Type: Medium-sized mechanical engineering, medical technology or similar
The situation:
The one buyer juggles:
- 150-200 suppliers
- 30-50 product groups
- Compliance requirements (LkSG, CSDDD from 2027, ESG)
- Negotiations
- Supplier monitoring
- Price controls
- Risk monitoring
Result: They can't keep up.
CFO: 'Okay, let's hire a second person.'
The Illusion: 2 People = 2x Productivity
This is wrong.
When you hire a second person, you don't get 2x productivity. You get:
1. Overhead Costs Double
One person:
- Salary: €50,000-65,000/year
- Social security (42%): €21,000-27,300
- Workspace, computer, software licenses: €3,000
- Training: €2,000
- Total: €76,000-97,300/year
Two people:
- Salary x2: €100,000-130,000
- Social security: €42,000-54,600
- Workspace x2: €6,000
- Training x2: €4,000
- Total: €152,000-194,600/year
This isn't 'one more person'. This is DOUBLE salary costs.
2. Coordination Overhead
With one person: They work. Alone.
With two people:
- Who does what?
- Who talks to which supplier?
- Who keeps the other updated?
- Coordination meetings
- Duplicate processes or work
Reality: Productivity increases only 60-70%, not 100%.
Because time is lost to communication.
Scenario 2: Intelligent Platform Solution
Same company, €5-8M volume.
But instead of second person: An SRM platform
Year 1: Implementation
Costs:
- Platform software (12 months): €18,000
- Implementation & training (80 hours, with vendor support): €8,000
- Internal time for data integration: €5,000
- Total Year 1: €31,000
Savings through platform Year 1:
- Automated RFQ processes: 50 hours/year saved = €4,000
- Better price benchmarks: 2% savings on €5M = €100,000
- Less manual data work: 30 hours/year = €2,400
- Early supplier risk detection: €10,000 (prevented failures)
- Total savings Year 1: €116,400
Net gain Year 1: €85,400
The Comparison (2 years):
| Metric | 2nd Buyer | SRM Platform | |--------|-------------|---------------| | Costs | €300,000 | €52,000 | | Savings | €55,000 | €294,600 | | Net Investment | €245,000 | -€242,600 | | Break-even | 4-5 years | 2-3 months | | Productivity Increase | 60-70% | 150-200% | | Scalability | Expensive (Salary x3 for 3rd person) | Same price (just more categories) |
Why Are Platform Savings So Much Higher?
1. A Person Works Reactively – A Platform Works Proactively
Human:
- Analyzes data when you ask
- Measures success manually
- Focuses on standard categories, forgets niches
Platform:
- Warns YOU when problems arise
- Measures continuously (24/7)
- Analyzes ALL categories automatically
2. A Person Has Bandwidth Limits – A Platform Doesn't
Human (even two):
- Maximum 200-250 suppliers in view
- Can handle 5-6 parallel negotiations
- Needs breaks, makes mistakes
Platform:
- Monitors all 200 suppliers simultaneously
- Runs unlimited parallel analyses
- Makes no mistakes, never tired
The Real Dilemma of Small Companies
With <€10M volume, you have a problem:
- Too much work for one person (You see this and want to hire a second)
- Not enough volume for specialized roles (What should person 2 do?)
- Too expensive to build an IT solution (This used to be true – but isn't anymore)
The solution: A pre-configured SRM platform
- Ready to use immediately
- Doesn't cost per head
- Designed for €5-15M volume
- ROI in 2-3 months
Call to Action
Before you hire that second buyer:
- Calculate the real 2-year costs (not just the salary)
- Ask yourself: Will this person really double our productivity?
- Consider a platform that scales without additional headcount
Chase Prime AI is designed exactly for companies like yours: €5-15M procurement volume, 1-2 buyers, overwhelming complexity.
We provide the intelligence layer your buyer needs – without the €150k/year cost of another person.