Why social value is now a procurement priority

🌍 The True Value of Procurement in Business Procurement is often seen as just “purchasing,” but in reality, it’s a strategic powerhouse that drives business success. ✅ Cost Optimization – Smart procurement isn’t just about negotiating lower prices. It’s about maximizing value, reducing waste, and ensuring sustainability. ✅ Risk Management – Strong supplier relationships and diversified sourcing protect businesses from disruptions, shortages, or compliance issues. ✅ Innovation & Growth – Procurement connects organizations with suppliers who bring new ideas, technologies, and solutions that fuel competitive advantage. ✅ Sustainability & Responsibility – Today, procurement plays a key role in driving ESG initiatives, ethical sourcing, and long-term impact. ✅ Business Agility – With the right procurement strategy, companies can pivot faster, scale efficiently, and stay ahead of market changes. In short, procurement is no longer a back-office function. It’s a strategic enabler of growth, resilience, and innovation. 🔑 Companies that invest in strong procurement practices don’t just save money—they build stronger, smarter, and more sustainable businesses.

Amplifying Procurement’s Social Impact is full of practical examples and KPIs from leading companies. Learn how these teams are measuring success and delivering meaningful results for business and society. Read the full report now. https://okt.to/u4U1Mc In partnership with Supplier.io

Procurement isn’t just about squeezing prices — it’s about creating real economic wealth. For the second post in my Procureonomics series, I’ve unpacked Economic Value Added (EVA) in the simplest way possible. Think of EVA as the measure of how much profit a company makes after paying for the money it uses. Every euro saved by procurement, every day of inventory reduced, every risk avoided can lift EVA — and therefore increase true shareholder value. In this blog, I break down EVA step-by-step with pharma-style examples and an ESG twist, so buyers can see how their daily sourcing decisions go far beyond cost savings. If you’ve ever wondered how procurement really moves the company’s financial needle, this one’s for you. Link to the blog: https://lnkd.in/eF2rBGgK

Sustainable Procurement: Building Value Beyond Cost Procurement today is not just about price negotiations. It’s about creating long-term value by integrating sustainability and governance into every decision. 🌍 Sustainability: Choosing suppliers who align with environmental and social responsibility. 📊 Governance: Ensuring transparency, compliance, and ethical standards. 🤝 Partnerships: Collaborating with suppliers to innovate and achieve shared goals. By embedding sustainability and governance into procurement, organizations not only reduce risks but also strengthen their reputation and drive sustainable growth.

From Compliance to Competitive Advantage: ESG in Procurement ESG isn’t a box to tick, it’s a catalyst for innovation and a powerful source of market differentiation. Porter & Kramer’s Shared Value framework argues that businesses create the greatest impact when environmental and social priorities are embedded directly into competitive strategy. This principle is reinforced by the UN Sustainable Development Goals, which position responsible procurement as central to achieving systemic change. In procurement, this shift means looking beyond cost and compliance. It involves evaluating suppliers not only on price and quality but also on carbon footprint, labour practices, Scope 3 emissions, and their capacity to innovate for more sustainable products and packaging. By aligning sourcing decisions with ESG priorities, organisations can reduce operational risk, strengthen supplier capability, and open doors to markets where customers actively reward responsible brands. When ESG is embedded effectively, procurement teams can co-develop lower-carbon materials with suppliers, improve traceability across global supply chains, and foster more resilient local sourcing networks. These initiatives not only cut waste and reduce emissions but also build stronger partnerships and trust with stakeholders. Far from being an added expense, ESG has become a strategic lever for long-term performance and competitive strength. ➡️ What’s been the toughest part of integrating ESG into your supply chains—supplier readiness, measurement, or stakeholder buy-in? Hi, I’m Rafe — an MCIPS-qualified procurement specialist. Follow along for practical insights on driving supplier innovation, embedding ESG in sourcing strategies, and unlocking long-term value beyond compliance.

💡 Why Prioritizing Local Content Strengthens Both the Economy and Project Sustainability In procurement, every purchase is more than a transaction — it’s a decision that shapes the economy, the environment, and the future of our projects. When we prioritize Local Content, we create a ripple effect that extends far beyond immediate cost or delivery timelines: ✅ 1. Economic Growth & Job Creation: Local sourcing fuels domestic industries, creates employment opportunities, and keeps financial value circulating within the national economy. ✅ 2. Supply Chain Resilience: By strengthening local manufacturing and vendor networks, we reduce dependency on imports and mitigate global disruptions — ensuring projects stay on schedule and within budget. ✅ 3. Environmental Sustainability: Shorter logistics chains mean lower emissions and a smaller carbon footprint — a direct contribution to sustainability and Vision 2030 goals. ✅ 4. Long-Term Project Stability: Projects built with locally produced materials enjoy faster maintenance support, better adaptability to local conditions, and a stronger sense of ownership among stakeholders. Ultimately, local content is not just a compliance requirement — it’s a smart, sustainable strategy. It transforms procurement from cost-focused to value-driven, aligning economic development with environmental and social responsibility. Let’s build projects that don’t just stand tall — but stand for something. 🇸🇦 #Procurement #LocalContent #Vision2030 #Sustainability #SupplyChain #EconomicGrowth #ProjectManagement #SaudiVision2030 #MBL #ModernProcurementHub #MBL #saudization

"𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗽𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗶𝘀 𝘁𝗼𝗼 𝗲𝘅𝗽𝗲𝗻𝘀𝗶𝘃𝗲." I hear this all the time. And it's wrong. ❌ Let's break down what sustainable procurement actually costs: Initial setup: 2-3 months of process redesign Ongoing investment: Better vendor relationships 𝗪𝗵𝗮𝘁 𝘆𝗼𝘂 𝗴𝗲𝘁 𝗯𝗮𝗰𝗸: 💰 20-40% lower procurement costs 🌍 50-60% reduction in supply chain emissions ⏱️ Faster ordering cycles 📉 Less waste = lower disposal fees 𝗛𝗲𝗿𝗲'𝘀 𝘄𝗵𝗮𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝗱 𝗮𝘁 𝗘𝗻𝗴𝗶𝗻𝗲: 𝘉𝘦𝘧𝘰𝘳𝘦: - 80+ companies ordering independently - Multiple daily deliveries - High waste, high costs - No emission tracking 𝘈𝘧𝘵𝘦𝘳: - Centralized procurement strategy - Consolidated suppliers - Shared inventory systems - Full sustainability metrics 𝗥𝗲𝘀𝘂𝗹𝘁: 𝗟𝗼𝘄𝗲𝗿 𝗰𝗼𝘀𝘁𝘀, 𝗹𝗼𝘄𝗲𝗿 𝗲𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝘀, 𝗵𝗮𝗽𝗽𝗶𝗲𝗿 𝘁𝗲𝗮𝗺𝘀. 🔑 The key principles: 1️⃣ Think long-term partnerships, not transactions 2️⃣ Consolidate where possible 3️⃣ Track both cost AND carbon 4️⃣ Share resources internally 5️⃣ Choose vendors aligned with your values 💬 𝗥𝗲𝗮𝗹𝗶𝘁𝘆 𝗰𝗵𝗲𝗰𝗸: The companies that will thrive in the next decade aren't just thinking about price per unit. They're thinking about total cost of ownership + environmental impact. Is your procurement strategy ready for 2025 and beyond? #SustainableProcurement #ESG #SupplyChainManagement #GreenBusiness #Procurement #BusinessStrategy #Sustainability #CostOptimization #CircularEconomy #OperationalExcellence

🌍 SUSTAINABLE PROCUREMENT: Driving Value Beyond Cost. In today’s dynamic supply chain environment, procurement is no longer just about getting the best price. It’s about making choices that balance value, ethics, and environmental responsibility. Sustainable procurement means: ✅ Choosing suppliers who respect labor and human rights ✅ Reducing carbon footprint through eco-friendly sourcing ✅ Promoting local suppliers to strengthen communities ✅ Ensuring transparency and accountability in every transaction By embedding sustainability into procurement, organizations not only reduce risks but also unlock long-term resilience and reputation gains. 💡 As procurement professionals, let’s commit to decisions that serve both our organizations and the planet. 👉 What sustainable procurement practices is your organization adopting today? #SustainableProcurement #SupplyChain #PublicSector #ESG #ProcurementLeadership

Procurement Edge Wednesdays The New Mandate: Why Sustainability is No Longer Optional for Procurement Procurement and Supply Chain management is at a critical strategic inflection point, transitioning from a tactical cost center to an engine of corporate resilience and mandatory compliance. The most forceful area of this transformation is the regulatory landscape, particularly within the EU, which is turning voluntary ESG (Environmental, Social, and Governance) commitments into enforceable requirements. This is being driven by new legislation like the Ecodesign for Sustainable Products Regulation (ESPR) and the Right to Repair Directive. This regulatory shift fundamentally alters the procurement and supply chain function's core metric of success. You can no longer simply prioritize the lowest initial purchase price. The success metric has shifted to the Total Cost of Ownership (TCO), which includes lifetime maintenance and end-of-life value. This necessitates deep, early-stage collaboration between procurement, engineering, and product design teams to co-create compliant products from the very beginning. Despite this clear regulatory trajectory, most teams are not ready for this change. A significant hurdle remains: 85% of teams cite the difficulty of sourcing sustainable suppliers as a barrier to achieving their sustainability goals. To overcome this, strategic sourcing must directly integrate environmental goals into supplier relationships, requiring suppliers to actively commit to green practices and reducing their Scope 3 emissions as a mandatory part of the tender process. This isn't just a reputational matter; it is a question of market viability. Procurement leaders who fail to adapt their sourcing methodologies to these new mandatory compliance regimes risk penalties or, in the most severe cases, may find their products excluded from major global markets like the EU. The procurement function is therefore transforming into a co-designer of the product lifecycle and the primary mechanism for executing global sustainability goals.

I often get asked what procurement really means. The truth? It’s not just contracts and compliance—it’s the invisible engine behind almost everything we experience. From the beans in your morning coffee to the steel in our bridges, procurement decisions shape the quality, cost, and sustainability of the world around us. It’s about: Choosing the right suppliers to deliver value—not just price. Building resilient supply chains that withstand disruption. Supporting ethical sourcing and sustainability goals. Enabling innovation through strategic partnerships. Procurement isn’t just a business function—it’s a mindset. It’s about making smart choices, every day, that ripple across industries, communities, and lives. Here’s to the unsung heroes behind the scenes—and to the power of procurement in shaping a better future. #ProcurementLife #StrategicSourcing #SupplyChainLeadership #EverydayProcurement #Sustainability #ValueCreation #AustraliaBusiness