As the logistics landscape becomes increasingly complex, the role of procurement is more critical than ever. Companies face growing pressure to meet net zero commitments, demonstrate measurable value across the business and reduce emissions, and many businesses are finding that their current procurement frameworks are no longer fit for purpose.
This is especially evident in the commissioning of transport and logistics services. Outdated and fragmented procurement processes, driven by siloed thinking, are holding too many businesses back – resulting in higher costs and poorer performance when it comes to sustainability, a critical factor in the run up to net zero.
But procurement teams can benefit from taking a new approach – one that balances cost, service and sustainability through flexibility and collaboration. By evolving procurement processes to be more agile and integrated, procurement can deliver greater impact across operational, commercial and environmental goals.
Breaking down silos in logistics
The logistics sector is navigating an increasingly demanding landscape marked by rising customer service expectations, rising fuel costs and persistent issues with driver retention and recruitment. Combined, these pressures are exposing some of the limits of traditional procurement models.
Wincanton’s survey of over 500 decision makers for supply chain, transport and logistics businesses in the UK found that 63% believe their current procurement processes are too rigid to enable true innovation. One key reason for this is that many organisations establish procurement procedures before defining what actually needs to be sourced, resulting in inflexibility from the outset.
Rigid models not only constrain innovation but can also increase unnecessary costs. The solution? Transitioning from fixed, closed-book contracts to adaptable frameworks and embracing digital tools. This means contracts can be more flexible and respond to dynamic sector changes in real time. If organisations want to stay competitive, they must evolve their procurement strategies to build in flexibility from the very start.
Aligning procurement with sustainability strategy
While sustainability is a priority for businesses on paper, action is lagging. Our data revealed that 79% of logistics decisions are still cost-led, despite rising ESG commitments, with 66% admitting that cost pressures are sidelining net-zero ambitions.
However, procurement can be a powerful lever for change when it is embedded with long-term sustainability objectives. Notably, 37% of decision makers recognise that reducing carbon emissions can also reduce costs, reinforcing the value of aligning sustainability and financial outcomes. When embedded into procurement strategy, sustainability can drive innovation, build resilience and create cost advantages that support both the planet and the bottom line.
As firms accelerate towards net zero, procurement strategies that align closely with wider business objectives and sustainability goals will be critical in unlocking both environmental and financial benefits.
The strategic power of collaboration
For procurement to deliver meaningful impact, processes must be adaptable and aligned with broader business objectives. Yet, 58% of decision makers believe logistics and transport are misunderstood by the wider business, a clear sign that siloed thinking is still present in many procurement practices. This disconnect not only limits operational efficiency but also undermines the ability to drive strategic value across the supply chain.
The path forward lies in strategic integration.
Smarter procurement must be embedded across key business functions, including finance, sustainability, operational strategy and digital transformation, in order to drive meaningful impact. It also demands closer collaboration with trusted partners who understand both the strategic and operational dimensions of supply chain transformation. When approached in this way, procurement evolves from a transactional function into a platform for innovation.
Shifting the perception
It is time to shift the perception of transport from a basic commodity to a value-driving service. Achieving this requires data-driven models, smart technology, and a platform to drive collaboration. Having the right technology solution requires both investment and the right skillset, which is often in short supply. And finding trusted partners can be challenging, as facilitating these relationships to find collaborative opportunities is a both a skill and time-consuming process.
Logistics service providers (LSPs) are well-positioned to address these challenges. They offer not only the right technology solution and teams with the right skill set to succeed, but a diverse customer portfolio which can unlock collaborative opportunities. In this way, the LSP plays an important role in facilitating collaborative relationships and driving value across the supply chain.
Digital transport solutions such as Wincanton’s EyeQ platform are already enabling procurement leaders to optimise their operations by fostering collaboration and increasing operational visibility in real-time. By embracing the digital tools and the insights they provide, operations can become not just smarter but more efficient and sustainable in the long term.
Now is procurement’s defining moment
To meet today’s challenges and seize tomorrow’s opportunities, procurement must move beyond rigid, fixed-book contracts and adopt a more flexible, holistic approach. The potential benefits are huge – not just for the bottom line, but in laying the foundation for long-term, sustainable success.
Breaking down silos, building cross-functional buy-in from both finance and operational teams, and embedding ESG from the outset will define the success of future procurement strategies. With the right strategy, procurement can become a true engine for commercial, operational and environmental value, driving resilience and competitive advantage well into the future.