In boardrooms across the UK, conversations around strategy, growth and resilience are more urgent than ever. With inflation pressures, ESG regulation, global supply chain volatility, and shifting consumer behaviours, the spotlight is firmly on how organisations operate, not just what they deliver.
Yet procurement, the function uniquely positioned at the intersection of cost, supply, sustainability, and risk, is still too often seen as a back-office cost controller rather than a strategic enabler. That must change.
Procurement’s impact on profit and performance
At its most basic level, procurement controls an organisation’s external spend, often 40–70% of a company’s cost base. In an era where margin preservation is as critical as growth, the ability to reduce costs while securing long-term value makes procurement an essential lever.
But this isn’t about simply negotiating harder with suppliers. Strategic procurement teams deliver value through supplier innovation, smarter sourcing, demand planning and creating more efficient and resilient supply chains.
When procurement is engaged early in business decisions whether it’s a product launch, tech investment, or supply strategy, the result is often better outcomes with fewer surprises.
The risk agenda is procurement’s reality
As the UK faces persistent supply chain disruption from the lingering impact of Brexit, to Red Sea delays, to sanctions fallout, procurement professionals are at the frontline of risk management.
The COVID-19 pandemic taught many organisations hard lessons about the fragility of “just-in-time” global sourcing. Those lessons are being reinforced today by the ripple effects of geopolitical shifts. Donald Trump’s return to the White House and hiking tariffs on foreign goods, is unsettling global markets. For UK companies reliant on complex, international supply chains, especially in manufacturing, this still presents major uncertainty.
Add in China’s slowed economic growth, energy instability and unpredictable raw material pricing and the case for involving procurement at the top table becomes even clearer. Procurement understands these risks in real time. It can advise on mitigation strategies, identify alternative markets, and ensure continuity but only if it’s involved early enough.
Procurement is now a driver of sustainability
Net zero commitments aren’t just marketing messages. They’re backed by regulation and are increasingly monitored by investors, customers and even employees.
Procurement plays a crucial role in achieving ESG targets, especially Scope 3 emissions – the indirect emissions in an organisation’s supply chain. Whether it’s sourcing from greener suppliers, embedding ethical labour standards or reducing waste across operations, procurement isn’t just a supporter of sustainability. It owns it.
Organisations that bring procurement leaders into the boardroom are better placed to embed sustainability into strategy, not treat it as a tick-box exercise.
Procurement’s moment is now
Across the UK, we’re seeing progressive businesses shift their perception of procurement. Strategic Procurement Business Partners are being recruited. Procurement is aligning more closely with Finance and ESG functions. And Procurement Directors are finally being included in leadership meetings.
But there’s still work to be done. Too many procurement teams are left to clean up after commercial decisions have been made, instead of being part of them.
With geopolitical tensions rising, sustainability becoming a licence to operate and margins under pressure – there’s never been a more important time for procurement to have a voice at the table.
Ready to build a more strategic procurement function?
Whether you’re looking to hire forward-thinking procurement talent or seeking your next leadership opportunity, we’re here to help.
📩 Contact Talent Drive today to speak with a specialist procurement recruiter who understands the real impact procurement professionals can have.
