Author: James Garrod. VP of Procurement Strategy @ The Buyers Network
Date: 28th March 2025 (5 min Read)
www.TheBuyers.network
One of the most exciting aspects of working in procurement is the chance to engage with industry leaders and uncover the challenges they face. After countless conversations at conferences and meetings, a clear theme has emerged—procurement teams are making a massive impact, but they’re not always getting the recognition they deserve.
Despite procurement’s growing role in managing risk, driving innovation, and ensuring business continuity, it’s still often seen as just a cost-cutting function. A Chief Procurement Officer (CPO) from a multinational manufacturing firm summed up the frustration perfectly:
“We manage millions in spending, reduce risks, and keep operations running—yet when big
decisions are made, procurement is still treated as an afterthought.”
So, why does procurement struggle to gain the recognition it deserves? More
importantly—how can procurement leaders shift this perception and showcase their true value?
The Challenges Holding Procurement Back
Conversations with procurement professionals highlight three recurring issues:
- The Cost-Saving Stereotype – Many executives still believe procurement is only about negotiating lower prices, failing to see its role in growth, risk mitigation, and innovation.
- Lack of Clear Metrics – Unlike sales, which can point to revenue numbers,
procurement struggles to showcase its impact beyond cost savings. - Late-Stage Involvement – Procurement is often included too late in the
decision-making process, limiting its ability to drive real strategic value.
A procurement director from an FMCG company in the UK put it bluntly:
“If we only talk about savings, we’ll always be seen as a tactical function. We need to prove our value in ways leadership understands.” - Change the Conversation: Procurement is More Than Savings
If procurement professionals want to be taken seriously as strategic partners, they need to
change the narrative. Instead of focusing only on cost-cutting, emphasize:
● Risk mitigation – Preventing supply chain disruptions and ensuring supplier stability.
● Supplier-driven innovation – Collaborating with suppliers to gain a competitive
edge.
● Sustainability and ESG impact – Aligning procurement with corporate sustainability goals.
A procurement leader in the healthcare industry shared how this shift changed their internal positioning:
“When we started presenting procurement’s role in revenue protection and supplier
innovation—not just cost savings—our leadership team began to see us differently.”
Measure and Showcase Procurement’s True Impact
One of procurement’s biggest challenges is that leadership often doesn’t see its contributions in measurable terms. To shift this, procurement teams need clear, data-driven and know that:
- metrics that resonate with executives.
Beyond cost savings, top-performing procurement teams track:
● Revenue impact – Preventing lost sales by ensuring supply continuity.
● Operational efficiency – Process improvements that reduce cycle times.
● Risk management success – Lowering supplier failures or compliance risks.
A CPO from a logistics company shared their experience:
“When we started reporting procurement’s role in revenue protection, leadership paid
attention. It wasn’t about how much we saved—it was about how much risk and disruption
we prevented.” - Get Procurement Involved Earlier in Decision-Making
Many procurement teams are frustrated that they’re brought in too late—after key decisions
have already been made. This limits their ability to negotiate better terms, manage risks
proactively, and drive value from the start.
A procurement director in the energy sector explained how they changed this dynamic:
“We made a strong case for procurement to be involved in product development—not just
sourcing. Now, we help shape supplier strategies from the beginning.”
How can procurement secure a seat at the table?
● Build strong cross-functional relationships with finance, operations, and R&D teams.
● Position procurement as a business enabler rather than just a gatekeeper.
● Take a proactive approach—don’t wait to be invited; bring valuable insights to
leadership regularly.
How Procurement Tactics Can Help You Make the Shift
At Procurement Tactics, we provide tools, training, and real-world case studies to help procurement professionals reposition their function as a value generator. Whether it’s measuring procurement’s true business impact, securing a role in strategic decision-making, or demonstrating innovation, we equip teams with the strategies they need to succeed.
Final Thoughts
Procurement’s undervaluation isn’t set in stone. With the right approach, procurement
leaders can shift the perception of their function and secure their place as key strategic
players. The companies that get this right will unlock procurement’s full potential—not just as
a cost-control function, but as a critical enabler of business success.
Now is the time to step up, take charge, and show the world what procurement can really do.
Are you ready to make the shift? The Buyers Network is here to help.
