The Role of Procurement Efficiency

It is only twice in my role as a Procurement advisor that I have come across a mid-market business using Procurement as a force multiplier. More often, Procurement is seen as the team that negotiates price, cuts POs, and chases trucks. That is so far from the full picture. When Procurement is empowered, here is what we can actually do: ✅ Extend your commercial reach Your business depends on suppliers, and not just for cost. We shape product offerings, delivery models, and customer commitments ✅ Turn internal complexity into clarity Fragmented spend. Vague specs. Non-existent contracts. Procurement brings structure to chaos. ✅ De-risk your decisions Procurement is your link to the supply market. We see what is happening before it hits your P&L. We design backup plans before you even need them. ✅ Connect the dots Between Finance and Ops. Between Legal and the rest of the org. Between product and supplier. Between commercial ambition and reality. Procurement is how your business gets faster, leaner, and more resilient. If you are only using it to cut cost, you are sitting on an underleveraged asset.

𝐏𝐫𝐨𝐜𝐮𝐫𝐞𝐦𝐞𝐧𝐭 𝐈𝐬𝐧’𝐭 𝐚 𝐃𝐞𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭, 𝐈𝐭’𝐬 𝐚 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐖𝐞𝐚𝐩𝐨𝐧. Most still treat Procurement as a back-office function. But in high-performing companies? It’s the engine driving value, resilience, and growth. Here’s what world-class procurement actually touches: → Finance: Total cost, payment terms, budget control → Legal: Risk, compliance, airtight contracts → Ops: Supply chain flow, delivery speed, inventory health → Strategy: Supplier innovation, ESG alignment → People: Stakeholder buy-in, supplier relationships → Data: Spend visibility, predictive insights, KPIs But here’s the kicker: Procurement doesn’t just “support” these functions. It integrates them, to unlock measurable business outcomes like: ✔️ Lower TCO ✔️ Faster speed-to-market ✔️ Resilient sourcing ✔️ Sustainable supplier ecosystems ✔️ Smarter risk management It’s not about saving costs anymore. It’s about orchestrating value.

“Feels like no one’s spending money right now. Is your job even busy?” A friend (and ex colleague) asked me that last week. It’s true, that fewer deals are closing. And budgets are certainly tighter. But it’s also true is that I’m busier than ever. Fewer purchases are getting across the finish line and approvals are under a microscope. But that just means the buying process has become more complex...meaning the role of procurement more essential. Let me explain why. First, engagement has changed. Procurement isn’t just showing up at the last minute to sign off on a contract or push for a discount (or at least, not as often as it used to). We’re being pulled in earlier. And no, unfortunately it’s not because stakeholders suddenly love involving us. It’s because finance is asking tougher questions. They want to know if the options were vetted. If the need is clearly defined. If this purchase is truly worth it. That makes procurement a necessary ally. We give stakeholders their best shot at getting (good) spend approved. And interestingly, that early involvement helps sellers too. We help cut through vague needs and shape the actual requirements (added this part for Matt Green). The result is faster clarity, fewer delays, and a better chance of real alignment between what’s being sold and what’s needed. Second, sourcing is increasing. Even now.....especially now. The market is changing fast. AI is impacting roadmaps. Pricing strategies are shifting. Support expectations are climbing. What worked last year might already be behind. So even the “safe” suppliers are being re-evaluated. No, we’re not doing this to stir the pot. We’re doing it because the risks of sticking with outdated solutions are growing. And in this environment, nobody wants to justify a poor decision six months from now. So no, procurement isn’t quiet right now. It’s active! And it’s more strategic than ever. If it's done well, it’s one of the critical functions helping the business move forward with confidence.