The 80/20 rule, also known as the Pareto Principle, is one of those ideas that seems simple… until you actually apply it in procurement.

First observed by Vilfredo Pareto, it states that roughly 80% of outcomes come from 20% of causes. In procurement, this shows up everywhere: a small portion of suppliers, negotiations, or actions drives the majority of results.

In most portfolios, about 20% of suppliers represent 80% of the spend, and very often, the same applies to savings. That’s where performance is really built.

If you take a performance-oriented view, Pareto becomes a decision tool. Instead of treating everything equally, you focus on what actually moves the needle. Which suppliers matter most? Which negotiations can deliver real impact? That’s where your energy should go.

Because the reality is simple: spending time on low-value topics might keep you busy, but it won’t significantly improve your results.

Applying this in procurement starts with prioritization. Identify your key spend areas, and align your best resources on them. Your most experienced buyers should be working on your highest-impact topics, where both technical understanding and negotiation skills make a difference. For the rest, lighter approaches or standardized processes are often enough.

But Pareto doesn’t only apply to suppliers or spend, it also applies to your internal actions.

A small number of internal initiatives often drives most of your performance. For example, a well-prepared negotiation strategy, strong supplier relationship management on key accounts, or a clean spend analysis can generate far more value than dozens of smaller, scattered efforts.

The same goes for time management. Not all tasks are equal. Some meetings, reports, or internal processes add very little value, while others directly contribute to results. Being able to identify and focus on the “critical 20%” internally is just as important as doing it externally with suppliers.

One common trap is to confuse activity with impact. Being busy doesn’t mean being effective. Pareto forces you to step back and ask a simple question: “Is this really where I should spend my time?”

Also, the 80/20 split is not fixed. It could be 70/30 or 90/10 depending on your context. The exact ratio doesn’t matter, the imbalance does.

At the end of the day, procurement performance is not about doing more. It’s about doing what matters most, both externally and internally.

This is just my perspective, based on experience. I might be wrong on some points, and that’s part of the game. If you see it differently, feel free to challenge it or share your view, that’s how we all improve.