Beroe & Kearney: Redefining Procurement’s Purpose

At DPW New York City, the theme of ‘Recode’ challenged procurement leaders to rethink how their functions operate in an increasingly digital and AI-driven world. For Vel Dhinagaravel, Founder & CEO of Beroe, and Suketu Gandhi, Global Chair at Kearney, the conversation is about far more than process improvement. It is about fundamentally redefining procurement’s purpose and positioning it as a driver of competitive advantage.

Moving Beyond the Savings Mindset

For many procurement organisations, success has traditionally been measured through annual savings targets. According to Dhinagaravel, that approach no longer reflects the realities of modern business.

He argues that savings were an appropriate metric when procurement’s primary role was consolidating spend and leveraging economies of scale across regions and global operations. However, the challenges facing organisations today require a different perspective.

“I think that’s outdated,” he adds. “We’ve got to move to a mode of measuring and striving for continuous competitiveness.”

This shift represents more than a change in reporting metrics. It requires procurement teams to rethink how they define value and how they contribute to broader business outcomes. Rather than focusing solely on reducing costs, procurement must increasingly consider how it can influence margins, accelerate growth and strengthen competitive positioning.

Reimagining Procurement’s Purpose

The rise of artificial intelligence has prompted many organisations to explore automation opportunities, but these leaders both caution against simply applying AI to existing operating models.

According to Gandhi, the real opportunity is not to optimise current processes but to reconsider why procurement exists in the first place.

“One of the most powerful things about the technology available right now is you don’t need to rethink how the processes run,” he says. “You have to completely reimagine why you exist.”

This distinction is critical. Many organisations are implementing AI solutions to accelerate existing workflows, but Dhinagaravel warns that doing so may create only the appearance of transformation.

“A lot of companies are putting an AI veneer on top of existing processes,” he says. “It’s giving them an illusion of speed because everything is running faster, but the outcomes aren’t going to be any different because the ambitions and the operating model haven’t been made more ambitious.”

Instead, both Dhinagaravel and Gandhi advocate for a more fundamental redesign of procurement’s role, one that leverages technology to deliver entirely new levels of strategic impact.

Procurement’s Growing Strategic Influence

Perhaps the clearest sign of procurement’s evolution is the changing nature of conversations taking place in the boardroom.

“Now they’re called in to say, ‘We are launching a new product. How can we fundamentally increase the speed at which the product will launch?'”

Similarly, procurement is becoming a critical partner in addressing supplier disruptions, supply chain challenges and broader operational issues that affect business performance.

This represents what Gandhi describes as a “night and day shift” from the traditional procurement model. The function is increasingly viewed as an enabler of growth, innovation and resilience rather than simply a transactional support service.

The Human Role in an Automated Future

As AI adoption accelerates, questions inevitably arise about the balance between automation and human decision-making.

Dhinagaravel believes technology should enhance procurement professionals rather than replace them. He describes AI-enabled tools, like Beroe MAX, as an “exoskeleton” that expands the capabilities of category managers, allowing them to make better decisions and manage a broader scope of responsibility.

“They should still be absolutely at the heart of the decision making,” he adds.

The opportunity lies in increasing both capacity and capability. By automating routine activities and delegating lower-value tasks, procurement professionals can spend more time focusing on strategic decisions and value creation.

Over time, this could enable procurement leaders to oversee significantly larger areas of spend and influence while maintaining high-quality decision-making.

Changing the Narrative for Procurement

While procurement’s influence has grown substantially, both Dhinagaravel and Gandhi believe perception remains one of the profession’s greatest challenges.

Dhinagaravel points to the COVID-19 pandemic as a turning point. During the crisis, procurement teams played a critical role in maintaining operations, securing essential supplies and helping organisations navigate unprecedented disruptions.

As a result, the outdated perception that procurement simply “buys things” has largely diminished.

However, he argues that procurement now faces a different challenge: effectively communicating its value.

Gandhi agrees and believes the way procurement talks about itself must change. “When you have a seat at the table, you are a leader in the company,” he says.

Instead of leading with savings figures, procurement leaders should focus on explaining how their work impacts customers, supports business strategy and contributes to financial performance. The operational details of procurement should come later in the conversation.

For Dhinagaravel, storytelling is becoming a core leadership capability. “Procurement is doing the work. They’re getting the results, but they’re not articulating it in a zoomed out fashion, which will appeal to the C-suite and to the board.”

Talent and Leadership for a New Era

Alongside perception, talent remains one of the biggest challenges facing procurement leaders.

According to Gandhi, organisations need professionals who can operate at the pace demanded by both technology and market competition.

As digital tools become more powerful, procurement teams must develop new capabilities that combine commercial acumen, strategic thinking and technological fluency.

Communication skills are becoming equally important. Leaders must be able to translate procurement activities into a language that resonates with senior executives and demonstrates business impact.

The ability to influence, communicate and connect procurement outcomes to enterprise objectives will be increasingly valuable as the profession continues to evolve.

The Shift from Cost Reduction to Margin Maximisation

Looking ahead, both leaders see enormous opportunity for procurement to expand its contribution to business performance.

Dhinagaravel believes the next stage of procurement’s evolution lies in shifting from a cost-reduction mindset to one focused on margin maximisation. Something that inspired the genesis of Beroe MAX.

This broader perspective positions procurement as a central contributor to business success rather than a function focused exclusively on expenditure control.

A Defining Moment for Procurement

For Gandhi, the profession has never been better positioned to create value. “This is the most exciting time since the profession of procurement was invented,” he says.

With procurement increasingly involved in commercial, financial and product-related decisions, the function is becoming central to how organisations compete and grow. Combined with rapidly advancing technology and a growing appetite for transformation among procurement leaders, the conditions are in place for a fundamental reinvention of the profession.

The challenge now is not simply adopting new tools. It is embracing a new vision for what procurement can become.