Most small businesses overpay their suppliers. Not by a huge amount on any single line — but across the whole supply base, the cumulative cost is significant. In our experience, a business spending £200,000 a year on bought-in goods and services typically has £15,000 to £30,000 in recoverable savings sitting untouched.
The reason isn't carelessness. It's time. When you're running a business day to day, procurement never feels urgent. There's always something more pressing than renegotiating with a supplier who isn't causing any problems. Until suddenly margins are tight and you need to find savings fast — which is the worst possible time to start.
Where the savings usually hide
Legacy pricing. Suppliers you've worked with for years, on terms agreed years ago, never revisited. Costs have moved — materials, labour, energy — but your pricing agreement hasn't been touched. The relationship is good, so nobody raises it. Meanwhile the supplier's margin has quietly improved at your expense.
Single sourcing. One supplier for a key product or service, no alternatives ever explored. No competitive tension. No reason for the supplier to sharpen their pencil. A single quote comparison exercise — even one you don't act on — often results in a better deal from the incumbent.
Payment terms not maximised. Most suppliers offer better terms to customers who ask. Extended payment terms improve your cashflow without costing either party anything. Most businesses never ask.
Volume not leveraged. You might be spending £40,000 a year with a supplier across multiple small orders. The supplier doesn't see it that way — they see individual transactions. Consolidating spend and presenting the annual figure often unlocks meaningful discounts.
A simple starting point
Pull your last 12 months of supplier payments. Sort by total spend. Focus on the top ten — those will account for 70-80% of your bought-in costs. For each one, ask three questions: When did we last renegotiate? Have we had a competitive quote in the last two years? Are we getting the best available payment terms?
If the answer to any of those is no, there's likely money to be found.
This is one of the most straightforward services Moor & Co offers — and it's available on a no win no fee basis. If we don't find savings, you don't pay. If we do, we take a percentage of what we save you.
It's a zero-risk conversation. If you'd like to start one, book a discovery call here.