Procurement in the MENA region is evolving rapidly. What was once predominantly reactive and transactional is now increasingly recognised as a strategic, enterprise-level capability. Where MENA needs to catch up opposed to other markets are procurement leaders moving through the ranks to Chief Procurement Office (CPO) levels.  Large organisations position CPOs at key decision making discussions.

In terms of technology, according to benchmark research from The Hackett Group, organisations that adopt digital procurement technologies – including e-procurement, spend analytics and supplier risk platforms – can see productivity improvements of 20–30% and cost-to-procure reductions of 15-25%, underscoring how digital investment shifts procurement from cost focus to value creation.

In MENA, this digital shift is layered over broader strategic priorities: ESG integration, local content development and governance standardisation are all accelerating procurement’s influence on business outcomes. Organisations are consolidating procurement functions, centralising spend reporting and implementing core ERP systems complemented by best-of-breed tools for analytics, contract-lifecycle management and supplier collaboration. This approach helps unlock real insight – from spend visibility to supplier performance – and enables procurement to deliver measurable business impact.

Importantly, digital tools alone don’t drive value – people do. Even as technologies automate repetitive tasks and strengthen compliance, the human elements – through business partnering (BP) in now a non-negotiable capability – embedding BP itself within business units, understanding commercial objectives early and influencing demand, design, supplier selection and innovation. This requires credible category expertise, proactive stakeholder engagement and the ability to translate operational insights into strategic recommendations. Research from GEP and CIPS reinforces that organisations prioritising supplier collaboration and cross-functional alignment outperform their peers in innovation outcomes, cost efficiency and resilience.

As more companies in the Middle East adopt digital procurement platforms, the focus is shifting from tactical order-processing to strategic influence – positioning procurement as a key driver of scalability, operational resilience and sustainable value creation.

Saudi Vision 2030: Procurement at the heart of diversification

With roughly five years remaining until the core 2030 targets, Saudi Arabia has made tangible strides in diversifying its economy. Massive investments in infrastructure, tourism, logistics, and technology – often delivered via giga-projects – are now matched by procurement policies that emphasise local content, ESG, transparency and supplier development. Whilst cost and compliance would have been the foundational stage, building robust supply chain ecosystems that support national strategic goals should now be at the forefront.

For procurement leaders, this means increased responsibility – to nurture local suppliers, meet localisation targets, uphold compliance, and manage complex ecosystems at scale. The demand for procurement expertise in Saudi Arabia is rising fast, presenting significant opportunities for professionals and organisations alike.

Procurement’s critical role in mega-events and regional transformation

Megaprojects and global events – from climate forums like COP to World Expos, major infrastructure rollouts, and regional investments – have placed procurement as a central architect of transformation and also enabler of delivery. In the Middle East, procurement is increasingly being used as a lever to deliver sustainability, local economic impact and supply-chain resilience.

Rather than being a back-office afterthought, procurement now plays a more front-line role. Integrated at budget stage, depended on for supplier selection, competent in analysing and negotiating costs, designer of contractual KPIs and managing post contract award performance. All of this and expected to embed sustainability and into sourcing contracts; selecting low-carbon or locally manufactured materials for construction and managing complex supplier ecosystems in the region. We do this with quality, resilience and accountability across programmes. Procurement is thus evolving into a powerful policy-execution instrument as well as a business enabler.

Natasha Schulz, Director Procurement Excellence & ESG at Dubai Holding

Natasha has spent her entire career building procurement functions from the ground up – in hospitality, healthcare, real estate and private equity – always with transformation at the core.

From her move from South Africa to Dubai eight years ago as Director Procurement for a global hospitality brand with a mandate to deliver governance, system implementation and group-wide deals from Malaysia to Mexico, to helping scale quality healthcare across 30+ hospitals in emerging markets as part of an private equity backed impact investing fund , to now spearheading procurement excellence within a large shared services organisation, serving six primary verticals and 500+ business units at Dubai Holding, Natasha’s mission has remained consistent: build robust, compliant, value-adding procurement functions infused with technology, sustainability, and strategic agility.

Technology and GenAI: The new frontier in Middle East procurement

We are already seeing generative AI (GenAI), automation, data analytics, and low-code tools reshape procurement. According to a 2025 study by The Hackett Group, 64% of procurement leaders expect AI to transform their roles within the next five years, while early adopters are reporting up to 10% gains in productivity, quality and cost savings – in some cases even more. 

Another recent report from GEP finds that 69% of organisations say procurement’s influence is increasing, as teams invest in automation, AI, and sustainable sourcing strategies – with more than half aiming to increase automation. 

In MENA, this technological wave is gaining momentum. While many companies remain focused on stabilising core ERPs and improving data governance, interest is rapidly shifting toward AI – especially bolt-on tools for spend analytics, supplier risk, e-procurement, and contract lifecycle management. Once clean data and proper governance are in place, these tools provide a powerful foundation for insight-driven procurement.

However, the real value comes not from automation alone – but from combining technology with governance, data quality, and human capital. This is where procurement can become truly strategic: freeing up human capacity from repetitive tasks so that teams can focus on supplier relationships, sustainability and beyond cost, we should talk about procurement’s contribution to revenue generation. During my experience within private equity, the narrative during board discussions was not how much did procurement save, it was how much did procurement help to grow our margin. 

Talent and capability – building the procurement workforce of tomorrow

A rapidly changing procurement landscape demands a new breed of professionals – not only technically proficient in sourcing, analytics, compliance, and contract management, but also strategic, collaborative, and purpose-driven. In MENA today, while there is an abundance of entrants into procurement roles, the true challenge is the acute shortage of deep, industry-ready skills. The region faces a widening gap between staffing volume and genuine capability – especially in strategic thinking, category mastery, digital fluency, and long-term value creation.

This skills deficit is coupled by the region’s unprecedented pace of business growth and rising organisational expectations. As sectors like hospitality, real estate, and mega-projects expand, procurement leaders must compete for talent who can withstand high demand, deliver transformation, and contribute beyond transactional work. Attracting and retaining such talent has now become one of the most critical barriers to procurement maturity in the region.

Recent regional reports highlight rising demand for roles such as Digital Procurement Specialists, Spend-Analytics Leads, E-Procurement Officers, and Procurement Transformation Leads. Procurement Excellence continues to emerge as a core horizontal capability, driven by technology, data, governance, and sustainability requirements.

The organisations getting ahead are those investing heavily in capability building: structured training programmes, professional certifications (e.g., MCIPS/FCIPS), mentoring, rotations, leadership development, and targeted upskilling – particularly in category management, analytics, ESG, and supplier relationship management. Procurement is undoubtedly a business enabler, and those who institutionalise continuous learning will build resilience, agility, and future-readiness across their workforce.

Key challenges: Data quality, integration, ESG, and change management

Even as the region embraces modernisation, procurement teams in MENA continue to face structural challenges. Among the biggest are:

• Data fragmentation and legacy systems that prevent effective spend analytics or supplier insights, thereby stalling AI and automation ROI.
• Gaps in supplier capability, especially for local suppliers trying to meet standards for ESG, compliance, and scalability — which complicates regional sourcing strategies.
• Change management and internal adoption challenges: ERP rollouts, new systems and process changes fail unless accompanied by clear governance, stakeholder engagement and training.
• Measuring ESG performance: while sustainability is an explicit priority, many organisations still struggle to define standard metrics or to collect consistent supplier data for carbon, waste, social impact, or circular-economy tracking.

The future of procurement in MENA: Purpose, partnership, performance

Looking ahead three to seven years, I am optimistic and energised. Procurement in the Middle East is on the cusp of a paradigm shift: from simply buying goods and services to shaping outcomes.

• Scale and scope expansion: With national‐level investments, giga-projects, infrastructure growth and inward foreign direct investments, procurement’s role will grow in size and complexity.
• Technology-enabled smarter procurement: As clean data and governance become standard, GenAI, analytics and automation will move beyond pilot stages – enabling real-time decision-making, predictive analytics, risk forecasting, and category innovation.
• ESG and sustainability at core: Green procurement, local content, circular-economy sourcing, and supplier social-value programmes will become baseline expectations, not optional. Procurement functions will anchor sustainability across sourcing and organisations.
• Talent and capability building: Procurement professionals will need cross-functional skills – data/analytics, ESG sourcing, stakeholder collaboration, category strategy. Organisations investing in upskilling, mentoring, and continuous improvement will outperform.
• Procurement as a strategic partner: More than ever, procurement will be recognized as central to growth, resilience, risk mitigation and social impact – not just a support function.

My North Star: Continuous improvement, innovation and people-centered procurement

At the heart of my procurement philosophy lies a simple but powerful belief: procurement requires continuous improvement, empowered teams, and purposeful innovation. I always say to my teams that “we are the daily 1% improvers”. Compounded over the year, we can easily look back personally and professionally and say we grew, developed and made an impact. 

When procurement operates as One Team – guided by ownership, accountability, transparency and shared knowledge – it becomes more than a cost-centre. It becomes the engine enabling, growth, sustainable futures and profitability, 

For business and leaders in MENA: invest in clean data, choose technology wisely, build talent deliberately, and embed sustainability at the core. 

For years, workplace construction and interiors projects in the Middle East have been operated against a backdrop where cost and speed were the overriding priorities. This approach has been fuelled by the region’s rapid development cycle, but times are changing and there’s a palpable shift towards upweighting ESG considerations, improving safety standards and bringing greater transparency across the supply chain. Clients, contractors, and suppliers are beginning to realise that the old model is no longer fit for purpose.

While progress has already been made, an imbalance remains: commercial pressures remain high, but expectations around quality, long-term value and a greater level of responsibility are rising even faster. Balancing those forces is vital and it requires strong leadership, clarity and the willingness to challenge the long-standing belief that the lowest cost should determine the way buildings are designed and delivered. That whole process needs a guardian and a clear strategic direction, and that’s where I firmly believe procurement has an opportunity to flex its might.

It starts with the client

Raising standards is no longer optional, it is business critical. When cost is allowed to overshadow everything else, the risks extend far beyond the balance sheet. Cutting corners jeopardises safety and can lead to incidents that damage reputations and cause significant delays. Poor transparency opens the door to inconsistent quality, unreliable delivery, and fractured trust. Not ideal for a region that is establishing itself as a global leader in construction and innovation. 

Much of the improvement to date is being driven by clients who pride themselves on living and breathing their values. They are dictating that every aspect of their global footprint lives up to the same standard; they want workplaces that reflect their values, reinforce their brand and meet global sustainability expectations. Every supplier and contractor must demonstrate that they can uphold those standards, not just during construction, but throughout the entire lifecycle of the project. This desire also echoes through government and legislative direction, so, why aren’t we there yet?

Consistency is key

At the moment we exist in a world where the vision and objectives for a workplace project are set by a CEO or Managing Director. However, as we transition into execution, and the commercial pressures of procurement and delivery build, this vision can all too quickly be set aside in favour of a cost-driven exercise. 

There is a huge opportunity here for procurement to step away from its reputation as a purely transactional function and to begin to take on a role where it sits as the guardian of organisational integrity as early as the concept and design stages. Taking this strategic approach means that quality, ESG and compliance occupy equal weighting alongside cost. It also defines a clearer role for procurement in managing supply chain volatility and risk, especially when considering geopolitical factors, fluctuating material costs and long lead times. For this to work, procurement’s role and remit broaden to become a partner from concept to handover. They are the bridge between commercial objectives and corporate responsibility.

Driving improvement through partnership

Success also sits in the hands of companies such as ours; we need to play a role to move the industry forward from intent to execution. It’s no longer just about the design and delivery of a project; we need to take the time to support local contractors and suppliers in understanding why standards must improve. This means working with our partners to ensure they can meet these new requirements. By taking a collaborative approach, rather than leading with the stick, we can drive improvement which will work long term. This education becomes critical as the region embraces recognised global sustainability benchmarks.

Quality frameworks such as LEED, WELL and BREEAM are no longer viewed as optional accolades, they are driving quality and value across real estate. For example, a LEED-certified building loses its integrity if the fit out is executed by partners who can’t meet those standards. Similarly, we need to support the workforce and provide ongoing training to ensure that those standards can be maintained. Clients must set clear criteria from the outset: only those capable of meeting defined quality and accreditation thresholds should be involved in a project.

Defining and measuring success

To raise standards meaningfully, the industry needs far greater transparency – this means introducing clear KPIs around safety, ESG and material traceability that give every stakeholder a shared understanding of progress. Only then can we build trust across the supply chain and ensure that quality, accountability and delivery are measured with the same rigour as cost. We need to move away from purely transactional engagements and instead focus on the benefits of strategic supplier partnerships.

The Middle East has a real opportunity to redefine what world-class delivery looks like. The appetite for progress is clear. The challenge, and the opportunity, lie in aligning client leadership, strategic procurement and an informed, capable supply chain behind a single set of expectations. If we can balance purpose with performance, the region won’t just meet global standards; it will set them.

Procurement in the GCC is no longer a support function. It is a central driver of national transformation and one of the fastest evolving commercial disciplines anywhere in the world.

Across the GCC the function now carries significant weight in delivering national visions, building domestic industry and enabling giga project development at unprecedented pace. The region’s rapid growth has created both opportunity and pressure, lifting procurement to the forefront of strategic decision making.

Many leaders look at the Middle East and assume that growth comes easily. The reality is more demanding. Procurement in the GCC operates at the speed and scale of a national mission, where expectations are high, competition is fierce and the need for trusted leadership is acute.

For procurement professionals planning a move to the region, or for organisations seeking to strengthen their teams, understanding the forces reshaping the function is essential.

Procurement as a national enabler

At the heart of this transformation lies the rise of procurement as a national enabler. In Saudi Arabia in particular, procurement plays a central role in delivering Vision 2030 by stimulating local industry, building sovereign capability and creating the supply chains that will underpin the country’s long term diversification.

Many Western systems focus on social value or sustainability. The Middle East also focuses on local content, industry building and speed. Procurement leaders entering this market must therefore be prepared to build capability from the ground up, while navigating decision cycles that are significantly shorter than those seen in Europe, and with higher levels of ambiguity.

Localisation redefines leadership expectations

Localisation has become the defining influence on procurement leadership across the GCC. In Saudi Arabia, procurement and purchasing roles are now subject to strict nationalisation rules, with the UAE and Qatar moving in the same direction.

Local content requirements are no longer a supplementary consideration. They shape award criteria, supplier selection and long term strategy. For expatriate leaders, this creates a clear mandate.

Their role is to deliver rapid transformation while developing national successors and transferring global best practice. The expatriate contribution is still vital, but it is increasingly transitional. Leaders must demonstrate commitment to national development, not simply technical expertise.

Digital innovation outpaces process maturity

Digital transformation is accelerating across the region, yet maturity gaps remain. GCC organisations invest heavily in advanced procurement platforms, automation and AI. Many have leapfrogged legacy European systems.

However, process discipline, governance and data quality often lag behind technology spend. Organisations recognise that the next stage of maturity requires stronger commercial governance, better category management and more consistent adoption of digital tools.

Procurement leaders who succeed in the region are those who can embed structure, improve compliance, handle ambiguity and drive behaviour change at scale.

A growing talent shortage shapes the leadership agenda

Talent scarcity is now one of the greatest risks facing organisations in the Middle East, with market growth outpacing the supply of experienced procurement professionals.

The CIPS MENA Salary Guide reports that 67% of employers struggled to find the right procurement talent in the past year, while 60% of professionals expect to move roles within the next 12 months. These figures underscore the volatility of the talent market and the difficulty of building stable, high performing teams.

Salary inflation is real, with half of MENA professionals securing an average pay rise of 12.7% in the past 12 months. But pay alone no longer secures loyalty. The study shows that procurement talent in the region increasingly prioritises career progression, training and meaningful roles linked to national impact.

As workloads increase and expectations rise, government employers and large semi sovereign entities continue to attract top talent through strong packages, structured development and the prestige of contributing to national programmes.

Organisations that want to retain high performing teams must create clear career paths, develop internal academies and build supportive structures that prevent burnout.

Cultural fluency as a strategic advantage

Cultural fluency is now a core requirement for procurement leadership in the GCC. Trust, presence and relationship building carry significant weight in commercial decision making. Face to face engagement matters. Leaders who rely on remote management or transactional approaches struggle.

In the Middle East, understanding the informal network of relationships and influence remains essential for navigating hierarchy. The GCC is also not a single market. Each GCC country requires different styles of engagement. Leaders who invest in understanding local context build partnerships that drive long term success.

What moving to the GCC means for procurement leaders

For procurement professionals considering a move to the region, the opportunity is significant. The GCC offers one of the most dynamic procurement environments in the world, where leaders can shape industries, build supply chains from scratch and contribute directly to national economic transformation. These are unique, flagship career mandates that have real purpose.

Success requires a commitment to capability building, strong cultural intelligence, adaptability and the ability to lead at pace. It also requires the humility to learn the market, respect national priorities and work in partnership with local stakeholders.

The outlook for organisations competing for procurement talent

For organisations, the leadership challenge is equally clear. Those that invest early in talent development, strengthen governance, align with localisation goals and build a culture that supports continuous learning will be best placed to win in the next decade of GCC growth.

Procurement has become a strategic differentiator in the region. The organisations that treat it as such will shape the next generation of commercial excellence across the Middle East.

Procurement leadership will shape the next decade of GCC growth

Procurement in the GCC is moving toward a future defined by capability, technology and long term national ambition. It is a landscape where strong leadership can accelerate national progress and weak capability can stall billion dollar programmes.

For leaders ready to embrace the pace, the scale and the privilege of contributing to national transformation, the region offers a career defining stage.

CPOstrategy: Thanks for being here, Saeed. Let’s start with some background about you and what you do at e&.

Saeed: “Thanks for having me, Sean. I joined e& in 1994 after qualifying as a Telecommunications Engineer from Khalifa University’s College of Communication. Since joining, I have progressed through a series of senior engineering and technology roles within the Group.

With over 30 years of experience in telco, I have played a central role in leading e&’s network and redesigning procurement strategies across multiple markets. I previously served as Acting Chief Technology Officer and Senior Vice President of Mobile and Fixed Networks, overseeing network operations, planning, and satellite networks.

I secured e&’s first international business license in Saudi Arabia as a member of the Mobily Tender Committee, leading supplier selection for mobile network infrastructure in Egypt, Nigeria, and India and ensuring seamless connectivity across the entire network.

From 2013 to 2016, I served on the Board of Directors of Atlantique Telecom, a group subsidiary in Africa. Since 2016, I have been a Board Member of Smartworld a joint venture between e& and Dubai South where I chaired the Human Resources Committee until the company was acquired by e& enterprise in October 2022 and rebranded as e& enterprise IoT and AI.

Currently, I serve as a Board Member of the Global Enabling Sustainability Initiative (GeSI), a global organisation advancing digital sustainability, and I sit on the Boards of CETIN International, E-Marine, and Etisalat Afghanistan.

In November 2021, I was appointed Group Chief Procurement Officer, with a clear mandate to transform procurement into a strategic, technology-enabled function. I have always believed in driving impact through innovation and collaboration. At e&, this has meant integrating digital tools, aligning procurement with ESG goals, and building strong supplier relationships to support our vision of sustainable, data-driven operations across our 38 operating markets.”

CPOstrategy: With e& expanding operations to 38 countries, how do you think you have contributed to this success specifically to the transformation from telecom to a global technology group?

Saeed: “Our four-part transformation strategy focuses on doubling down on our connectivity core, digitising operations, diversifying our portfolio, and driving sustainability, and procurement sits at the centre of all four. I’ll give you an example; when we acquired PPF Telecom Group in 2024, which created e& PPF Telecom Group, it introduced new dimensions to how we think about sustainability and supply chain resilience.

In addition to integrating systems, for us, it’s about aligning with the teams at our acquired companies to harmonise standards, embed sustainable practices, and create efficiencies that benefit the whole Group. This collaborative approach ensures that procurement becomes a lever for innovation, resilience, and long-term value creation across our transformation journey. Fortunately, the groundwork we laid pre-transformation, ensured we’re well-prepared to deal with such a dynamic operating environment.

Between 2021 and 2022, we fully digitised our procurement process from start to finish. We implemented solutions like SAP Ariba and EcoVadis, automating and streamlining every step while embedding sustainability checks at the core of our processes. This has reduced cycle times by 40% and accelerated supplier onboarding significantly.

Of course, there was some disruption in the beginning as change always brings that, but by aligning our teams early and demonstrating the efficiency of digital tools, we secured buy-in and delivered results quickly.”

CPOstrategy: Can you take us through the role procurement has played in e&’s transformation journey and some successes? 

Saeed: “Today, e& Procurement has evolved from a transactional function into a strategic powerhouse driving innovation, embedding sustainability, and advancing key national priorities such as In-Country Value (ICV) and the ‘Make it in the Emirates’ initiative.

Now, we are embarking on another transformation journey and this time it’s powered by advanced agentic AI, sustainability, and national priorities at its core. e& Procurement is setting new benchmarks for excellence, enabling business success while contributing to a sustainable future. This transformation was recently recognised with the prestigious ’Best Approach to Risk Mitigation’ award at the CIPS Excellence in Procurement and Supply Awards MENA 2025 in Riyadh.

Recognition has been a testament to our team’s dedication and innovative spirit. Earlier, e& Group Procurement earned two prestigious awards at the CIPS Middle East and North Africa Conference in 2023, secured a finalist position at the Gartner Awards for outstanding procurement contributions, and established a landmark collaboration with CIPS in October 2023. This partnership focuses on driving technology adoption, advancing ESG practices, and fostering innovation across procurement.

This year, our team received the Best Procurement Transformation Award at the SAP NOW AI Tour in Dubai, recognising our integration of AI, data analytics, and agile processes to enhance transparency, efficiency, and ESG alignment.

In May 2025, e& Group Procurement was honoured with the In-Country Value (ICV) Excellence Award for the Service Provider Category by the Ministry of Industry and Advanced Technology during the Make it in the Emirates Forum. This recognition underscores our commitment to advancing the UAE’s economic development and supporting the national industrial strategy through sustainable, locally driven operations.

On a personal level, I was humbled to be named Most Influential Chief Procurement Officer at the CIPS Excellence in Procurement and Supply Awards MENA 2025 – a reflection of our collective efforts to transform procurement into a strategic enabler of business success and sustainability.”

CPOstrategy: And then there was Project Life, which is the thing that everyone has heard of. What can you tell us, and where are you now?

Saeed: “Project Life, our pioneering sustainable procurement initiative, was launched at COP28 in Dubai to reduce our Scope 3 emissions, targeting 25% reduction in supply chain emissions by 2030, in alignment with the UAE’s climate targets.

As part of our Climate Transition Plan, we assessed our top 10 suppliers and were encouraged to see that 70% had carbon reduction targets aligned with the Science Based Targets initiative (SBTi).

Phase 1, completed in 2024, was about building strong foundations. We defined our responsible sourcing vision and embedded ESG principles into our procurement policies and processes, incorporating them into our Supplier Code of Ethical Conduct and Procurement Manual. We also onboarded suppliers onto EcoVadis, enhanced digital integration with SAP Ariba, and launched supplier awareness sessions to strengthen engagement and collaboration. Additionally, we finalised our responsible sourcing target operating model incorporating ESG KPIs into procurement and contracting systems.

These steps aligned our supply chain with e&’s sustainability objectives while reinforcing our leadership in sustainable procurement. We partnered with strategic suppliers to support their climate transition plans, using digital tools like EcoVadis to assess ESG risks, gather emissions data, and identify opportunities for footprint reduction.

Project Life not only supports the UAE’s national sustainability goals but also accelerates e& ’s climate neutrality ambitions, embedding robust ESG practices across our procurement value chain. As the first initiative of its kind in the Middle East  sector, it positions e& as a regional leader in sustainable business practices.

Phase 2, now underway, focuses on scaling these efforts by leveraging digital tools and data-driven insights to make sustainability measurable, actionable, and embedded across our entire supplier base.”

CPOstrategy: That’s ambitious. And it’s not just the UAE – it’s across your global footprint, right? How complex is that rollout?

Saeed: “Exactly. We operate in 38 markets, each with its own regulations, technology infrastructures, and supplier capabilities. That adds a layer of complexity.

Being based in the UAE, we draw on its advanced approach to apply best practices with other OPCOs. For instance, when vendors lack established ESG frameworks, we provide training, guidelines, and templates to help them align with our standards.

Of course, conditions vary across regions, so a one-size-fits-all approach isn’t realistic. Instead, we focus on harmonising standards in ways that can be adapted to local contexts achieving consistency where it matters most, while allowing flexibility to address unique market needs.”

CPOstrategy: This has to be done in cooperation with suppliers. How are you getting them on board to cut emissions?

Saeed: “Collaboration is everything. We are working closely with around 50 strategic vendors, our largest emitters, to co-develop low-carbon solutions. This includes conducting annual supplier ESG audits and hosting joint workshops on topics such as circular economy practices.

This isn’t about policing, it’s about partnership. With one major equipment supplier, for example, we piloted a refurbish-and-reuse model that significantly reduces waste and emissions.

In 2024, we conducted a detailed review of our Scope 3 emissions reporting, focusing on improving data quality and refining our calculation methods. This year, we are taking it further engaging directly with suppliers strengthening internal processes and controls and exploring advanced tools for emissions management to ensure greater accuracy.

As e& continues to expand into new markets and acquire new businesses, we are embedding ESG considerations into our mergers and acquisitions due diligence. We have begun mapping out the necessary steps and started discussions with investee companies to share e&’s climate targets and understand their transition plans.

On the energy side, we are increasing the share of renewable electricity sourced directly from Independent Power Producers (IPPs). For instance, we piloted projects allowing developers to install and operate solar systems on our rooftops and car parks. To scale this, we are exploring larger contracts where IPPs can supply power through public grids.

For this to succeed, regulatory frameworks need to define how IPPs, grid operators, and electricity consumers interact including fee structures. In many of our markets, these frameworks are still emerging. Establishing effective market mechanisms will not only attract private investment but also reduce reliance on imported fossil fuels benefiting businesses, communities, and local economies alike.”

CPOstrategy: That leads us nicely into culture. Leading the procurement function, how have you worked on transitioning teams to prioritise sustainability?

Saeed: “It starts with education. We launched ESG training and cultural transformation programs for end users, suppliers, category managers, and senior leadership. We also embedded sustainability KPIs into performance reviews and rolled out cross-functional awareness campaigns. People truly engage when they see that sustainability is directly linked to their growth and performance.

We also brought in external experts to lead workshops, and it made a significant impact to have leaders from COP28 share insights directly with our teams.

Our October 2024 acquisition of PPF marked a major milestone in transforming the telecom landscape in Central and Eastern Europe. It expanded e&’s footprint and operational complexity, reinforcing the importance of embedding sustainability into both our core business and M&A strategy.

Looking ahead, e& is focused on strengthening emissions data, accelerating supply chain decarbonisation, advancing responsible procurement, and enhancing governance frameworks ensuring that new acquisitions fully align with our climate and ESG targets.”

CPOstrategy: Let’s talk technology. How is AI being used to achieve these goals?

Saeed: “Our AI-powered procurement engine is a core enabler of e&’s sustainability agenda and digital transformation strategy, driving measurable outcomes in carbon reduction, operational efficiency, and customer value creation. It processes supplier data, identifies ESG risks and automates compliance checks.

We’re also using machine learning to predict energy demand in telecom networks and data centers, reducing consumption by optimising load distribution and cooling. AI-driven algorithms decide when to switch to renewable energy sources to minimise carbon intensity.

Smart supplier evaluation tools assess ESG performance, carbon footprint and compliance risks, while AI-driven predictive analytics build on those insights to ensure cost efficiency, supply continuity, and greener procurement decisions.”

CPOstrategy: And what about generative or agentic AI – is that on the cards for you?

Saeed: “We are piloting generative AI to automate supplier risk reports and regulatory documentation and leveraging agentic AI to optimiSe energy use across our infrastructure and logistics.

The potential is massive whether in emissions modeling or dynamic tracking of supplier performance, these tools will dramatically accelerate what we can achieve.

This year, e& Procurement is deploying GenAI and Agentic AI with eight intelligent agents covering supplier onboarding, end-to-end sourcing cycles, and post-award contract management. This makes e& one of the first technology companies globally to integrate such advanced capabilities across the entire sourcing lifecycle.

Key outcomes include:

• 15–20% faster sourcing cycles for quicker decision-making

• 25% reduction in supplier onboarding time

• 10x faster contract authoring and streamlined RFx evaluations

• Smarter negotiations driving cost avoidance

• Enhanced visibility into carbon footprints, reinforcing our commitment to sustainability and innovation.”

CPOstrategy: What are the main challenges you’re dealing with today?

Saeed: “One of the biggest challenges is the quality of supplier data. Without accurate and standardised information, it’s difficult to track progress meaningfully or make informed decisions.

Additionally, regulatory requirements are evolving rapidly, which means we need to constantly adapt our processes to remain compliant.

Finally, investing in upskilling suppliers, especially in developing markets, is resource-intensive, but we see it as a critical investment in building long-term resilience and sustainability across our supply chain.”

CPOstrategy: In the face of those barriers, how confident are you that you’ll hit your 2030 targets?

Saeed: “Very confident. We have a clear roadmap, strong leadership support, and the right technology stack in place. Most importantly, our suppliers are actively engaged and collaborating with us.

Phase 1 was about establishing a solid foundation; Phase 2 is about executing at scale. The momentum is strong, and we are ready to deliver.”

CPOstrategy: Last but not least, what do you have to say to industry peers who are watching your progress?

Saeed: “Procurement is no longer just about cost, it’s about value creation. The business landscape is changing rapidly, and there’s no option to isolate or “black box” ESG and digital transformation; they are integral to the future.

For us, responsible sourcing is a competitive advantage that drives innovation and resilience while contributing to both national and global sustainability targets. It’s an exhilarating time to be at the forefront of this transformation.”

Since its establishment over 20 years ago, Alqotr has offered numerous solutions across a wide range of industries, including engineering consultancy, geospatial surveying, and urban planning. 

Alqtor provides services such as aerial surveying, land surveying, 3D laser scanning, drafting and CAD services, geographic information systems, underground utility detection, planning and panoramic imaging services, smart city services, and more.

Saudi Vision 2030

Today, Dr. Mohammed Al Ali serves as an advisor and general supervisor of the geospatial sector at Alqotr. As part of his role, he leads a team of experts who provide high-quality geospatial services to support government and private sector projects across the Kingdom of Saudi Arabia. In line with Saudi Vision 2030, Alqotr has shaped its strategy and direction to move forward in collaboration with the objectives of this ambitious vision. “Our strength lies in our ability to deliver integrated and comprehensive geospatial solutions – from field data collection to building digital systems that support smart decision-making,” says Dr. Al Ali.

Alqtor has built one of its most important relationships with the Real Estate Registration Company (RER), a key player in developing Saudi Arabia’s real estate sector. Alqotr supports RER by conducting accurate field surveys, verifying property boundaries, and integrating geospatial data into digital systems. Through this alliance, Alqotr contributes to developing a smart, reliable and unified real estate registry that strengthens property rights and investment across the Kingdom.

Developing key relationships

Dr. Al Ali explains that Alqtor goes beyond transactional partnerships, instead seeking to develop key, strategic business relationships that are sustainable and future-focused, relationships, such as the one established with RER. “We go beyond providing services; we build long-term strategic partnerships that drive Saudi Arabia’s growth and development,” he says. “At Alqtor, we are firmly committed to creating real value – whether by digitising property records, enabling smart cities, or supporting infrastructure planning. We work closely with our partners to deliver accurate, innovative, and sustainable results. We look to the future with enthusiasm and are eager to achieve even greater success together – with RER and all our local partners.”

To find out more about Alqotr, click here.

Pactum, a pioneer in agentic AI for enterprise procurement, has announced the appointment of Paige Wei-Cox as Chief Product Officer.

From December 1st, 2025, Wei-Cox will lead efforts to accelerate Pactum’s evolution from product innovation to platform scale, expanding adoption across global enterprises and enhancing collaboration within procurement ecosystems.

Wei-Cox joins Pactum at a defining moment for both the company and the industry, as enterprise procurement transitions from digital workflows to intelligent, autonomous decision-making. Her appointment signals Pactum’s next phase of growth as it scales from category leader in autonomous negotiation to the intelligent decision layer for global procurement. Wei-Cox will oversee product, technology, product marketing, and ecosystem integration, bringing together innovation, execution, and customer value under one end-to-end product vision.

“Paige is one of the few product leaders who has shaped the global procurement landscape from within,” said Kaspar Korjus, Co-Founder and CEO of Pactum. “She has previously built and scaled the world’s largest business network, connecting millions of buyers and suppliers. Her track record of leading complex enterprise transformations, while inspiring teams and customers alike, will help Pactum bridge innovation and adoption as we redefine the future of procurement.”

Wei-Cox brings more than two decades of leadership experience across AI, SaaS, supply chain, and enterprise procurement. During her tenure at SAP, she led the SAP Business Network, including the Ariba Network, as well as supply chain portfolios such as Logistics and Asset Intelligence Networks, redefining how global enterprises connect, collaborate, and manage value across their extended ecosystems. Her leadership unified strategy across ERP, network, procurement, and supply chain domains, enabling the world’s largest organisations to digitize operations and build intelligent, collaborative value chains. She also served as Chief Product Officer at Everstream Analytics where she led a product-led transformation that scaled the company as a market leader in AI-driven supply chain risk management.

“Pactum is years ahead in defining what agentic AI means for enterprises,” said Wei-Cox. “I’ve spent my career helping organizations connect people, data, and technology to drive transformation. Pactum represents the next evolution, embedding intelligence directly into how companies make decisions. This is where customer impact, innovation, and AI come together at scale.”

Wei-Cox’s appointment further reflects Pactum’s momentum and market position as the first mover in autonomous negotiation, delivering measurable ROI for more than 50 of the world’s largest enterprises, including Suez, Novartis, Otto Group, Bristol Myers Squibb, and Honeywell. Backed by $100M+ in funding from Insight Partners, Atomico, Project A, and Maersk, Pactum’s platform is now the proven foundation for agentic AI adoption at enterprise scale.

Known for her customer-first approach, inclusive leadership, and ability to translate complex vision into scalable execution, Wei-Cox has been recognised as a Top 100 Woman in Supply Chain and a multi-year Supply & Demand Chain Executive Pro to Know.  She’s passionate about uniting teams around purpose, building trust, and driving meaningful outcomes through technology, and holds a Bachelor of Science from Purdue University and an Executive MBA from Mannheim University.

Learn more about Pactum here.

Procurement teams are feeling the pressure like never before. Tariff uncertainty, cost inflation and supplier volatility are combining with internal challenges – smaller teams, tough competition for talent and disconnected systems – to make an already demanding job even harder.

Together, these pressures are not only stretching resources to their limit and creating significant strain for procurement professionals, but are making commercial relationships far more complex. 

Misaligned expectations, changing requirements, poorly drafted documentation and payment delays are all becoming increasingly likely to spiral into disputes, which themselves are becoming more common, more expensive and slower to resolve than many professionals would like to think.

In fact, according to a recent survey – conducted as part of Resolutiion and the Chartered Institute of Procurement & Supply (CIPS)’s Breaking the Deadlock report – 48% of respondents said the time to resolve procurement conflict and disputes is increasing. More specifically, 49% said that serious conflicts and disputes were taking up to six months to resolve and, in extreme cases, 13% indicated that it is taking more than six months to reach a conclusion to disagreements. 

Exacerbating the issue are the costs associated with resolving conflicts – from a financial, resource, and reputational perspective – which 73% said were on the up. A separate report published earlier this year from Resolutiion and World Commerce and Contracting (WCC) also estimated that the direct costs and publicly available data alone amounted to £671 billion ($900 billion).

While these challenges are enough to contend with alone, they are also seeing organisations rely on ad-hoc approaches rather than structured processes. In fact, many organisations currently only bring in legal help sparingly, which suggests there isn’t always a formal escalation path or decision rule, with procurement managers relying on personal judgment or internal politics to decide how to handle a dispute. This approach is one that’s only further delaying resolutions, straining supplier relationships even more, and causing additional operational disruption that is completely avoidable. 

Top strategies for improving conflict and dispute outcomes

The above findings may, on the surface, seem negative; relationships that are quietly consuming time and trust, ultimately impacting businesses’ bottom lines. But they also signal a clear opportunity for procurement professionals to rethink how they approach conflict and dispute management, in turn enhancing their resolution capabilities.

With this in mind, consider the following strategies:

1. Strengthen documentation clarity and upfront alignment: Put simply, better delivery documentation (not just contracts, but all documentation that governs the relationship) makes for less conflict and fewer disputes. So, consider how to make contract terms clear from the outset, defining deliverables and expectations upfront, and holding a clarification meeting after signing the contract. In doing so, organisations can pre-empt a large portion of conflict and disputes caused by misunderstandings.

2. Prioritise communication and supplier relationship management: Support a culture of ‘no surprises’ via regular check-ins, performance reviews, and putting early warning systems in place for potential issues. This can not only improve the ongoing dialogue with suppliers and internal stakeholders throughout the lifecycle of the relationship, but stop disagreements from escalating and reduce the frequency of conflicts and disputes.

3. Switch ad-hoc case handling to a more structured framework: By establishing a clear multi-tier resolution process (e.g. initial negotiation > management escalation > intervention), companies can handle conflict and disputes at the lowest appropriate level, saving time, money, improving efficiency and collecting data at each stage. 

4. Leverage available data: Following on from the above strategy’s reference to data collection, don’t just collect data, use it. Modern procurement systems generate vast amounts of data: on delivery times, quality issues, change orders, communications, etc. By applying analytics or AI, organisations can spot patterns or red flags (for example, a trend of late deliveries or increasing change requests in a project) that typically precede a dispute. Some forward-looking organisations are even beginning to implement predictive analytics on supplier performance data. Even without advanced technology, organisations can still track basic metrics to understand where conflict and disputes occur most often if a simple register is maintained.

5. Build conflict and dispute resolution into leadership and organisational culture: Conflict and dispute resolution objectives should be integrated into development plans, competency models, and performance evaluations for them to work most effectively. That means treating them in the same way you would other key metrics – for example, by celebrating examples of effective resolution like you would for cost savings being delivered or successful tenders.

6. Improve access to specialist expertise in a cost-effective way: Make specialist conflict and dispute resolution expertise more accessible as a built-in support for procurement. By lowering the barriers (time, cost, bureaucracy) to engage expert technology, companies can leverage their benefits with greater ease. Additionally, training internal procurement staff in negotiation and conflict management can raise the overall skill level. 

The bottom line here is that now is the moment to act – procurement conflict and dispute resolution must move from the margins to the mainstream of operational strategy. As 2026 approaches, commercial relationships are only set to become more complex and supply chains more interdependent; a trend that will see the ability to navigate disagreements constructively become a hallmark of high-performing organisations.

Written by Fayola-Maria Jack, Founder, Resolutiion. Resolutiion® is a human-centred global AI platform, purpose-built to help buyers and suppliers prevent, manage, and resolve commercial conflicts and disputes, with speed and precision.

Success in procurement doesn’t just happen.

A good procurement function delivers cost savings, timely deliveries and maintains robust supplier relationships.

But the journey isn’t linear, and procurement leaders get the strategy wrong at their peril. A disjointed procurement strategy could be an expensive mistake and lead to unexpected costs, significant delays and quality issues.

With this in mind, CPOstrategy explores five of the top procurement mistakes to avoid.

Lack of procurement strategy

Operating without a clearly defined procurement strategy is a dangerous game. Without a strong framework in place, organisations run the risk of inconsistent decisions, missed cost-saving opportunities and poor supplier relationships. It is a key reason why developing a procurement strategy aligned with wider organisational objectives, with clear metrics and KPIs, is vital. There should also be a standardised policy and governance as well as ensuring procurement goals are linked with wider company goals. Procurement leaders should regularly meet with senior leadership in order to ensure long-term synergy is achieved.

Lack of automation

Leveraging technology isn’t something that is optional any longer. All organisations must be digitally fluent and seek to embrace the latest innovations in order to keep up with competitors. The likes of spreadsheets and emails are prone to human errors, while a lack of visibility, brought on by the absence of real-time tracking of spending, causes issues. This is where the use of e-procurement platforms and spend analytics tools is essential in order to identify cost savings in real-time and result in greater efficiency.

Lack of communication

Poor communication in procurement leads to misaligned expectations across the function and suppliers. This could mean confusion over requirements, timelines and responsibilities as well as a lack of buy-in from internal stakeholders who are not involved in the procurement process. Instead, procurement leaders should engage all stakeholders early and use clear communication channels to provide updates to keep all relevant people informed.

Poor supplier selection

Choosing the right suppliers is arguably one of the most critical aspects of the procurement process to get correct. It is a problem because a short-term cost focus leads to low-bid vendors who are unable to deliver, while a lack of due diligence exposes the risk of financial instability, legal risk and supply chain disruption. Instead, procurement leaders should define clear selection criteria, take part in a thorough due diligence process and use a structured sourcing strategy.

Lack of budget control

A lack of budget control in procurement can lead to cost overruns, strained stakeholder relationships and missed financial targets. Untracked or unauthorised spending bypasses approvals and preferred suppliers, while overspending against departmental budgets can cause frustration within the organisation and could result in cost-cutting. Instead, good budget control in procurement requires a pre-approval process to be implemented alongside real-time budget tracking tools and categorising spend effectively. It is also important to stay on top of spend and conduct regular budget reviews.

2030 is regarded as the end destination for many sustainability and digital programmes.

The first part of this decade has been filled with complexity and uncertainty. From the likes of COVID-19, to the wars in Ukraine and Israel, to inflation concerns and Trump’s tariffs, the geopolitical landscape has appeared extra challenging in recent years. However, despite this disruption, procurement is still fighting back amidst an unprecedented and overwhelming plethora of new and exciting digital tools available on the market.

So, how does procurement map its way to 2030? CPOstrategy explores this burning question and hears from experts in the field who are tackling this conundrum head-on. 

Procurement transformation

Nicholas Walden, Europe Practice Leader, Procurement Advisory at The Hackett Group, believes that by 2030, procurement will be redefined as an intelligent and resilient function that helps guide the business on strategy and value capture, especially in a world characterised by sustained volatility and uncertainty. “Procurement will be closely aligned with overall business strategy and goals, supported by strong capability ‘muscles’ such as scenario modelling, risk management, supplier-led innovation, and environmental, social, and governance (ESG) performance,” he says. “Procurement functions must also develop a culture of continuous learning to address new skill requirements and closing capability gaps. This includes adopting emerging technologies, particularly digital and AI-enabled tools, which will play a central role in enhancing productivity, improving decision-making, and handling time-consuming tasks such as regular revalidation of supplier data, certifications, and risk assessments. 

“Critically, business processes across procurement will operate at significantly greater speed – potentially one and a half to two times faster than today – enabling more agile and effective operations. In this future, procurement will be a proactive, insight-led partner to the business, equipped to navigate complex challenges and deliver sustained results.” 

Purposeful AI

Simon Geale, Executive Vice President at Proxima, explains that as procurement leaders continue to find meaningful use cases for AI, both build and buy, many are not yet scaling investment. However, in his view, it is set to change. “There are a few forces driving this transformation, and each will adapt and evolve during the next five years,” he tells us. “Firstly, platforms are seeking to reinvent themselves. The best of breed market has threatened to usurp platforms and looking forward, agents and orchestration make this possible and practical. Platforms must reinvent or retarget those businesses that do not have the capability to invest in resources or build programmes. 

“Secondly, the best of breed market is under attack from itself. What started as the easy antidote to complex platforms has become a complex market. The antidote to this could paradoxically be larger players and we should see some exciting consolidations and digital managed services or digital BPO arising.  

“Finally, the barriers to build are disappearing. It’s getting easier to build private LLMs and use agents to automate process and replicate many tasks. Looking to 2030, we can probably expect to see an industry around ‘build’ allowing for bespoke architectures. And we will still be focused on savings, and to some extent bemoaning that fact. I say own it! There are few things more strategic than helping a business to achieve its strategic objectives to the best commercial benefit.”

Powering decision-making

Jenny Draper, Managing Director at Barkers Commercial Consultancy, reveals that procurement in 2030 will be expected to take a far more strategic approach within organisations, driving not just cost efficiency, but also sustainability and innovation. “Effective risk mitigation will be crucial and will heavily depend on having accurate, real-time data across a range of critical factors,” she tells us. “Procurement teams will need to integrate diverse data points, including supply chain performance, political and regulatory developments, climate-related disruptions, and the availability of goods and services – using accurate, real-time data as forecasting processes to predict and respond to risks. From navigating geopolitical tensions, adapting to extreme weather events, or managing shortages and price volatility, the ability to underpin these unpredictabilities with accurate, real-time data will be vital in securing supply and supporting long-term business development.

“The widespread use of AI to scrape data and interpret it to create a scenario plan is already prominent, and the use of AI is already growing in real-time exponentially. It’s likely we will begin to have even more credence in AI as the years roll on, and procurement teams – especially where data analysts are crucial to strategy planning and decision-making – will obtain data interpretations from AI more. AI will likely feed into decision-making, making it a streamlined, easy way to obtain data insights and scenario modelling. People can then focus their energy on interpreting for the business and continuing to manage and foster relationships with supply partners. We will likely gain even more confidence in AI’s ability, with analysts, to mitigate risk, set direction, and forecast any of these disruptions.”

Future-proofing procurement

As the procurement function continues to shift and move, its role will transition to one heavily underpinned by technology. “It can do much of the strenuous work to present options in front of a human, with a high degree of real-time accuracy,” adds Draper. “However, as opposed to broader, end-to-end solutions, it’s likely we will see point solutions in procurement to address particular, specific needs of the business. By 2030, orchestration tools like Zip and ORO will play an integral role in procurement functions by seamlessly connecting workflows across multiple platforms and technologies. These orchestration tools enable organisations to use different systems for differing stages of the procurement journey, including sourcing, contract management, or supplier onboarding, without losing efficiency. 

“Orchestration platforms act as a workflow bridge, creating a unified, automated workflow that is tailored to specific roles within the business. Not only does this enhance user experience, but these tools also improve speed and compliance across processes. While these tools are already gaining traction in the market, their use is expected to escalate enormously as procurement becomes more digitally developed.”

Procurement’s journey ahead isn’t linear. Its way forward is a continuous journey of development and transformation. Indeed, the acceleration of new digital tools such as generative and agentic AI is set to continue to free up procurement practitioners and help deliver time and cost savings to the companies brave enough to adopt it into operations. As digital tools mature, innovations such as this will become increasingly popular options across the workforce. While digital transformation is the key, it is people which underpins procurement’s evolution. Procurement’s pathway to 2030 has never been clearer.

Managing tail spend efficiently is a challenge many organisations face.

Those small, scattered purchases can be hard to keep track of and can quickly add up in cost, complexity and compliance efforts. 

But Candex, led by CEO and Co-Founder Jeremy Lappin, is tackling this issue head-on.

While in his previous company, Lappin was tasked with invoicing a number of large organisations when he discovered there was a gap in the market to simplify the process for purchasing from small vendors and one-time purchases. 

“When I started Candex, I noticed that this problem was common to organisations all over the world,” explains Lappin. “So we decided to build a fantastic purchasing infrastructure to allow for the ability to invoice clients globally and then pay smaller vendors. We started focusing on recruitment vendors and then broadened into all types of vendors as we began to understand how things worked and how to better serve our clients. That’s the genesis of how Candex got to where it is today.”

Together with Co-Founder and Chief R&D Officer Shani Vaza, Candex was born. And today the company delivers a fast, compliant, and easy buying experience for requisitioners, while procurement gains automation, visibility, and control, reducing the vendor master by up to 80%.

Hitachi Energy was an early customer of Candex back in 2021. Lappin was introduced to Chief Procurement Officer at Hitachi Energy, Armin Ploetz, and his team in Switzerland.

The partnership continuously grew and developed into a strong alliance, which now acts as a template and best practice and helps shape how Candex works. 

The journey between Candex and Hitachi Energy started as a pilot in Switzerland, Spain and Portugal, but following a successful year, Hitachi Energy decided to roll out the Candex solution in 40 countries. The adoption rate has more than doubled each year, and this year the trend is even tripling.

Inside Candex

Over the years, some of the biggest challenges procurement teams have faced involve the likes of fragmented data, manual vendor onboarding processes, and administrative bottlenecks. This leads to time and resources being devoted to low-impact tasks, causing major strategic projects to receive insufficient attention. In many organisations, 70% of vendors represent only 5% of total spend. Candex enables procurement teams to efficiently handle this long tail of spend without increasing operational workload. As a result, teams can concentrate on strategic goals, shift spending towards preferred suppliers, and generate greater value for the business. Currently, Candex is supporting procurement in moving beyond just compliance and cost reduction to achieve something much more meaningful – transparency.

Procurement leaders often face resistance when implementing new systems. However, Candex has ensured high adoption rates and navigation through some of this initial inertia because of its unique and simple user experience offering. “Usually when our clients first deploy us, it starts a little slow because people aren’t familiar with Candex or how it works,” explains Lappin. “But over time, we see incredible adoption from our customers like Hitachi Energy, who have got a real feel for how compliant this methodology is. We’ve seen a very steady growth within our clients in very predictable ways which is amazing.”

Candex and Hitachi Energy: Strategic partnership

Hitachi Energy’s core markets are expanding rapidly, demanding full attention on strategic and high-impact suppliers. Candex plays a crucial role in supporting this growth by efficiently managing short-turn, low-risk tail-end suppliers, for example in R&D – allowing Hitachi Energy to stay focused on its key business relationships, products and services. 

Armin Ploetz explains that one of Candex’s biggest advantages is that it allows Hitachi Energy to act quickly and omit a lengthy supplier onboarding process for small-spend or one-time purchase suppliers.

“In R&D, teams often require unique suppliers for one-off tests of new materials or components – items they know they’ll purchase only once,” says Armin Ploetz. “Candex is ideal because there’s no need to qualify the supplier for ongoing production. Scalability checks aren’t required, making procurement much faster.”

“If a needed part isn’t available in our catalogue, R&D can use Candex to source it for their specific project. The key is clear communication because knowing when and how to use Candex makes all the difference. That’s why we stay in close contact with our R&D teams to ensure they use Candex as efficiently as possible.”

Building trust

As exemplified by the Hitachi Energy relationship, one of the things that stands out is the trust that exists in this partnership. In fact, Lappin reveals that his entire business revolves around trust. “It’s a relationship business,” he tells us. “Orders, invoices, and payments must go where they’re meant to, so the system has to function smoothly and any complexities should disappear into the abyss. It should feel simple and consistently dependable and like it always works.”

Before Candex, Hitachi Energy spent a significant time with onboarding and invoice alignment to specific countries, where their specific efforts often outweigh the cost or even the benefits. “Now, with Candex handling and streamlining this for their infrequent, low-value and low-risk areas, Hitachi Energy is able to better focus on where it matters most for them, their line of business, products, markets and their clients,” adds Lappin. 

The Candex difference

According to Armin Ploetz, the management of tail spend is an important area because it touches many stakeholders. “Imagine we run a one-time team-building event in the UK.” reveals Armin Ploetz. “Normally, bringing in a new supplier means going through a full onboarding process and checking the likes of cybersecurity, sustainability, and financial liability, which is similar to what we do for critical, strategic suppliers. While this process is necessary for our core business, it exceeds the actual need in other areas and consumes valuable time.” 

“For low-value, one-off events like this, it’s far more efficient to work with a company like Candex, which performs the essential safety checks without going as deep as our full supplier onboarding process. That way, we can onboard and purchase from such suppliers much faster, avoiding the specifics and additional efforts necessary for others. Payment, as a consequence, also becomes quicker, making the entire process smoother.”

Previously, internal requesters often found this process frustrating and questioned why a small, one-off event was difficult to arrange and why payment couldn’t just be made quickly. Now, there is a targeted solution – faster processing, better efficiency, and improved internal reputation. Lappin reveals how delighted he is that Candex is able to provide that value to organisations the size of Hitachi Energy.

“It’s humbling to see that a company like Hitachi Energy finds what we do to be so important, and that’s what drives us day in and day out,” he tells us. “We love listening to their suggestions for improvements and their excitement to bring us into new markets. We love how it makes their automation goals more achievable and makes their processes more efficient and easier to follow. I think that is the reward that we get from doing it and it’s always fun to see the surprise on their requisitioners’ faces at how effective our solution is and how easy it is to use.

“Hitachi Energy has been incredibly efficient and effective at how they’ve performed change management and rolled Candex out around the world to their people and got them using it. We’ve learned quite a lot from that experience in terms of collaborating and we’ve been able to use that learning with some of our other clients.”

However, success is not without challenges. According to Lappin, one of the biggest hurdles is being available within each individual country. He stresses that there are key criteria to meet such as following local rules and regulations, understanding how taxation works and opening new bank accounts. Fortunately, Candex has become well-versed in handling those challenges within different countries.

“The first part is being available in the countries where the clients need us, which is basically everywhere,” explains Lappin. “Then the second challenge is getting set up as a vendor in those countries with our clients and enabling the users in those countries to trust us for their purchases. They don’t want things to get messed up. They want everything to be right, because they know how things work in these countries. So, we have to work perfectly, and ensure Candex is working perfectly for the purchases that they’re making in these countries. Being good at this is one of the hardest challenges that Candex has.”

Future facing procurement

The future of the partnership between Candex and Hitachi Energy looks bright. Already using this alliance as a template for others, Hitachi Energy is set to continue to roll out Candex to as many countries as possible. “Our plan will be to go with them as far as we can go, because we currently see a massive increase in efficiency on our side since partnering with them,” says Armin Ploetz. “If Candex comes up with additional solutions in the future, we will certainly consider and evaluate these according to our needs, to embrace new solutions as long as they fit within our overall technology landscape. For the time being, we are still rolling out the existing solution and ensuring we drive the adoption of the tool but there is still a way to go.”

From Lappin’s perspective, he is well aware about how the future of payments in procurement is evolving and believes compliance is becoming increasingly important. “There’s a lot of sanctions and screening processes that are expected of companies,” he says. “The requirements on that front are getting more significant, and the government requirements on invoicing are similarly getting substantially more difficult. As time progresses, I think people will be even more concerned with compliance, and government processes will become even more complicated to deal with in terms of how invoicing needs to be done. I don’t see that trend stopping at all, nor do I see an easy way around it.

“In procurement, there’s some amazing analytical tools that are coming out that’ll be incredibly valuable that use AI to get real important knowledge out of what’s happening. I think that people will figure out how to use AI to help them find the right vendors, to help them create the right quotations and scopes for the projects that they’re embarking on. I don’t think the payment infrastructure will be affected as much as some of the other user-facing areas that are gaining traction in the space such as guided buying and orchestration. Everyone is focused on making the user experience easier and helping people make the purchases that they need to make.”

How do you ensure compliance and efficiency without slowing down business processes?

Jeremy Lappin: “One of our greatest strengths at Candex is the way we’ve engineered compliance into the purchasing process. Normally, making a compliant purchase means going through sanction screenings, verifying beneficial owners, and waiting for approvals before a vendor can act. This creates a common bottleneck, “I can’t do my part until someone else finishes theirs.”

“With traditional onboarding at companies like Hitachi Energy, vendors must complete a thorough and detailed process before a purchase order can even be released. At Candex, there’s no waiting period. Vendors can move step by step through our system without relying on others, which makes the process faster, smoother, and less complex.

“We’ve optimised it so purchase orders go through without delays, confusion, or unnecessary complexities. Of course, payments are never as simple as handing someone cash – there are still taxes, invoices, and compliance requirements. But compared to any other method, we make the process simpler and more efficient.”

Jeremy Lappin

CO-FOUNDER, CEO, Candex

Jeremy is one of the co-founders and the CEO of Candex. He is responsible for driving the company’s business innovation, overseeing product development, and implementing growth strategies.

Prior to Candex, Jeremy served as the CEO of Bounty Jobs, a prominent Enterprise Agency Management solution and recruiting platform. During his tenure, he successfully raised $18 million in funding and led the company to achieve over $20 million in annual revenue within three years. With a diverse background in the internet, financial, and technology sectors, Jeremy brings valuable entrepreneurial and management experience to the table. In 1998, Jeremy founded Versity.com, an internet software company where he developed enterprise course management software for universities. Jeremy managed to secure $12 million in funding for Versity and eventually sold the business for $80 million.

Jeremy earned his undergraduate degree from the University of Michigan and holds an MBA from the Massachusetts Institute of Technology. Outside of work, he enjoys skiing and playing tennis during his spare time.

Shani Vaza

CO-FOUNDER, Chief R&D Officer

Shani is the powerhouse behind Candex’s cutting-edge technology, where she serves as the Co-Founder and Chief R&D Officer.

Before joining Candex, Shani held the esteemed position of Director of Engineering at SuperDerivatives, a prominent Fintech company renowned for its expertise in derivatives.

Her journey into the tech world began in the prestigious tech unit of the IDF, where she honed her coding skills straight out of college.

Armed with a degree in Computer Science and Business Administration, Shani’s expansive knowledge forms the foundation of her unwavering dedication to achieving technological excellence.

Armin Ploetz, Chief Procurement Officer, Hitachi Energy

With more than 30 years of experience within the supply chain management realm, Armin is the Chief Procurement Officer at Hitachi Energy and leads Supply Chain Management and the Common Shared Services.

Armin is passionate about driving value creation beyond cost reduction and efficiency improvements. He is continuously improving sustainability maturity, leveraging technology and promoting diversity and inclusion at work. 

Armin’s most recent focus is on implementing robust risk management strategies and ensuring proactive supply chain regulatory compliance by leveraging artificial intelligence. Armin holds a PhD in Industrial Engineering from the Federal Institute of Technology in Switzerland and has held various leadership roles in multinational companies, such as Ernst&Young (EY) and IBM.

At companies like Hitachi Energy, onboarding high-risk, high-spend suppliers – especially those tied to critical production elements – requires rigorous due diligence and thorough evaluation. This process is essential to ensure compliance, quality, and operational continuity. However, for infrequent, low-value, and low-risk purchases, such extensive onboarding can be disproportionate. Candex streamlines this segment by enabling suppliers to onboard quickly and independently, without lengthy delays or complex dependencies – allowing procurement teams to focus their resources where it matters most.

Selecting the correct technology vendor in today’s crowded tech marketplace can be challenging. Product features and functionality remain essential considerations, but successful long-term technology partnerships depend on far more than “tech specs” alone. 

This issue becomes even more critical as organisations look to adopt AI – as yet a nascent but rapidly developing technology. Procurement and business teams with an eye on long-term successful results must go beyond surface-level product comparisons to identify technology partners who are truly aligned with their strategic objectives and operational realities – and much of this comes down to understanding a vendor’s business culture.

Who’s steering the ship?

For business procurement teams, evaluating a technology vendor’s “business culture” is far more than a superficial exercise or a vague impression from initial meetings. It’s a concrete discipline: understanding how a vendor is structured, how they operate day-to-day, and what truly motivates them as a company.

Begin with the basics – ownership structure. Is the vendor privately owned, publicly traded, or backed by private equity? Are they focused on long-term partnership and sustainable growth, or are their goals more short-term and transactional? 

Procurement professionals know that a sudden shift in ownership can upend product roadmaps and destabilise support, putting organisational objectives at risk. Ask vendors candidly about their ownership and future vision.

Equally important: Who’s developing the technology? The most effective solutions are created by people who have real-world expertise in the domain. Procurement teams should prioritise vendors whose products are built by insiders – sales experts designing AI-powered CRM software, legal pros building AI-enhanced legal tech, and so on. 

When cultural knowledge infuses the product design process, the resulting tools are more likely to address genuine pain points and evolve with industry needs. Vendors lacking this internal expertise may struggle to deliver lasting value, raising red flags for procurement teams seeking ongoing ROI from their technology investments.

Prioritising customer success

Successful technology adoption hinges on robust customer engagement. Procurement teams should scrutinise the vendor’s approach: Do they maintain dedicated account managers? What’s the ratio of customers per account manager – are you one of five customers assigned to that manager, or one of fifty? High-touch engagement models indicate a vendor culture focused on partnership, not just transactions.

Delve into success metrics. How does the vendor define “success,” and does this match your team’s own KPIs for technology adoption? Misaligned definitions can derail partnerships, so seek vendors willing to adjust their benchmarks to fit your organisation’s goals. 

Responsiveness also speaks volumes. When issues arise – software bugs, integration hiccups, or other bumps in the road – does the vendor proactively address them, or do they only react after multiple complaints? Procurement teams will benefit by leaning towards partners who treat problem-solving as an ongoing commitment, not a reluctant obligation.

It’s also worth evaluating how vendors handle customer feedback loops for their product, particularly for any new AI features or functionality. Do they actively solicit input and iterate on product features, or do they treat feedback as a formality? Vendors that embed customer insights into their roadmap demonstrate a culture of continuous improvement – one that’s more likely to deliver tools that evolve in step with an organisation’s own changing needs.

Pricing is important, but so are partnerships

Procurement’s responsibility for managing cost and risk makes transparent pricing non-negotiable. Insist on itemised breakdowns for every license, integration, and support service. Does the vendor’s quote encompass the true total cost of ownership, or are hidden fees lurking beneath the surface? Beyond clarity, pricing models should also reflect flexibility. Can licenses scale up or down based on usage or organisational shifts? 

Another consideration beyond price is the fact that modern organisations rely on tech ecosystems – not isolated solutions. You can have the fanciest AI tool in the world, but it won’t do you much good if it doesn’t “play nicely” with your existing technology stack or requires expensive integrations to make it work properly.

To mitigate this risk, procurement teams must closely examine the vendor’s partnership network. Does the vendor offer seamless integrations with existing technologies and core business applications? A well-developed partner ecosystem signals a culture of openness and collaboration, with an eye on helping the customer succeed. By contrast, a vendor that leaves integration burdens on the client sends a very different message.

Go beyond features and focus on the bigger picture

For procurement teams, due diligence extends far beyond ticking boxes on a feature matrix. Procurement’s mandate is to mitigate risk and enable value – tasks that demand a holistic assessment of the vendor’s business culture. Ask tough questions, dig into the vendor’s organisational DNA, and look for evidence of shared values and strategic alignment.

Purchasing technology is never just about software – it’s about investing in a partnership. This truism has only been become more important in the age of AI.

Aligning with the right vendor culture will support your long-term goals, streamline implementation, and de-risk future investments. When procurement teams prioritise these cultural factors, they position their organisations for more reliable and innovative outcomes, today and tomorrow.

Global leader in procurement intelligence, Green Cabbage, has announced a $40 million Series B investment from Sageview Capital, a growth equity firm based in Silicon Valley and New York.

The funding will fuel the company’s international expansion and the continued launch of advanced multi-channel spend cubes, furthering its mission to redefine procurement intelligence.

“We’re honoured to welcome Sageview Capital as a partner in our growth journey,” said Eric Cunningham, CEO and Founder of Green Cabbage. “The trust we’ve earned from some of the world’s largest enterprises by delivering billions in savings across Technology, Third-Party Labor, Marketing, and Travel & Expense has validated our model. With Sageview’s support and global network, we’re expanding the depth of our spend categories and extending our solutions from large enterprises to mid-market organisations worldwide.”

Jeff Klemens, Partner at Sageview Capital, added: “We’ve been following Green Cabbage for over a year and are impressed with their vision, product momentum, and consistent execution.  With annual growth more than 100% and an exciting technology roadmap, it’s clear they are bringing unmatched innovation to procurement & finance. The combination of strong customer ties across private equity, consulting, and global enterprises, plus an experienced and energised leadership team, positions Green Cabbage for long-term, sustainable success.  We are excited to partner with Eric and the entire Green Cabbage team to support their growth journey.”

This funding follows Green Cabbage’s Series A investment from Sorenson Capital just one year ago. “We’ve been fortunate to align with the right partners at the right time, and we couldn’t be more excited to have Sageview join us,” said Eric Cunningham. “Our clients have been asking for deeper insights through a multi-channel spend cube platform, and we are delivering. We’ve also built a world-class leadership team across the globe, and our clients’ results speak for themselves.”

Be sure to subscribe to our newsletter for the full interview with Green Cabbage in our upcoming DPW Amsterdam Takeover Edition.

Procurement isn’t the simple purchasing function it once was.

Over the past decade, procurement has been given a shot in the arm and is today almost unrecognisable from what it once was. Indeed, the function of 2025 is complex and is filled with various nuances and ever-changing disruptions amid a dynamic geopolitical environment. One of the biggest reasons for the evolution of procurement has been the introduction and acceleration of new digital tools that offer exponential cost and time savings.

As part of that, procurement orchestration has become an important piece of the puzzle to company strategy. Procurement orchestration represents the entire strategic integration of all processes that comprise an organisation’s procurement strategy. It focuses on putting the various tools and processes that cross-functional departments and stakeholders use. It is a powerful, broad view which consists of tools and strategies that allow for spend visibility to be maximised and enable the efficiency of procurement teams.

CPOstrategy explores five of the biggest ways to benefit from procurement orchestration.

Fragmented procurement processes

Orchestration platforms automate mundane procurement tasks such as purchase order creation, approvals and invoice matching. As a result, it reduces manual errors, decreases cycle times and frees up procurement professionals to focus on strategic activities. If one or more common procurement solutions have been implemented, then companies could have experienced siloed workstreams and data. Over time, these inefficiencies can compound which leads to the likes of manual, ad hoc workflows to coordinate the procurement process. Orchestration links systems together such as legal, IT and other teams, to enable them to work in their preferred systems while finance and procurement gain full visibility into all stages of the process.

Power of data

Orchestration allows for a single source of truth and can help guard against potential issues. Problems such as incorrect purchase orders, mismatched invoices and delayed payments can strain supplier relationships, cause financial losses and mean operational inefficiencies. Orchestration minimises errors by automating key tasks, enforcing data validation standards and processes as well as connecting purchasing and AP invoicing. By consolidating data from sourcing, contracts, spend analysis, and supplier performance, orchestration platforms support better-informed decisions. AI and analytics can further optimise category strategies and supplier selection.

Rogue spending

Procurement can sometimes be a lengthy process. This means that sometimes spending happens outside of approved supplier contracts. This happens when there is low employee adoption of procurement systems, a lack of centralised procurement policies or limited spending visibility. The result of this can mean higher costs, decreased negotiation leverage and the prospect of non-compliance. However, orchestration can solve this problem through stricter controls and approval workflows that eradicate unauthorised spend and improve financial governance. This will enable better visibility, control, data integrity as well as allow for a greater user experience.

Agility

Today’s world is unstable and is filled with complex challenges. Take the past few years, for example. In 2019, few could have predicted what the next six years would hold for procurement and supply chain. But the likes of Covid, wars and inflation issues, among others, have caused major changes to the way procurement works. One of the biggest challenges of 2025 has been President Trump’s tariffs imposed on various goods. This sparked a trade war with China and retaliatory measures from other countries. As such, an agile response to geopolitical disruptions is imperative in order to avoid being left short and having to change supplier contracts and pricing strategies. However, orchestration can help provide a centralised system that powers quick and strategic decision-making. Ultimately, it means that organisations can pivot quickly and avoid disruption despite sudden economic changes.

Improved supplier collaboration

All good relationships with suppliers are built on trust. In truth, it is impossible to be successful in the modern business world without partnerships. This means that if an organisation is still reliant on legacy systems, it risks inefficiencies creeping into operations. Indeed, poor supplier collaboration not only delays procurement functions but also exposes companies to compliance risks and excessive costs. But, this is where orchestration can help. Improved process organisation enables businesses to share information in real-time via centralised systems. As a result, this means suppliers can monitor order statuses, compliance and workflows without the requirement for continuous back-and-forth communication. Through better supplier collaboration via orchestration, it should allow for less friction, increased efficiency and better delivery over strategies to lead to a greater chance of achieving long-term success within procurement.

The international tariff situation remains extremely fluid. The recently announced US-UK trade deal and thawing of the US-China relationship are positive signs. The Brexit reset deal is also a welcome step forward for UK retailers, providing greater stability by making cross-channel trade more predictable and cost-effective. Lower compliance costs and fewer delays will free-up budget to reinvest in customer experience and innovation.

That said, uncertainty remains the underlying sentiment. As a result, many retailers have not yet made major operational changes in response and instead are pausing activity and holding off on major decisions, reflecting the broader uncertainty across international markets. With developments shifting rapidly, businesses are reluctant to commit to spending or take on additional risk without clearer direction.  

So, who is currently feeling the pinch? Clearly, some sectors are already dealing with the pressure of tariffs more directly than others. In the retail industry, fashion and footwear are likely to be hit in both directions, with new charges adding to existing market access duties, impacting both import and export activities. These categories are particularly vulnerable to cost volatility, not least because when prices shift unpredictably, consumers tend to hold back, and in fast-moving, cost-sensitive sectors like fashion, that quickly disrupts demand. 

DIY and home improvement are also exposed, largely due to the increased cost of raw materials such as steel and aluminium. In these categories, margin pressure is amplified across the supply chain, and as products become more expensive to source, those costs are difficult to absorb without impacting retail pricing.

Luxury goods face similar challenges. With international supply chains and high-value items, even marginal shifts in duty rates can affect competitiveness. The wider concern is that any additional charges will be matched by retaliatory measures, escalating the issue and increasing complexity for retailers trading across multiple regions. 

Drawing on experience 

The disruption caused by tariff uncertainty shares clear parallels with the early stages of the COVID-19 pandemic. During that period, many retailers were forced to rethink their fulfillment models by shifting stock away from central distribution centres into stores that could operate as micro or mini warehouses. This flexibility allowed them to adapt quickly to changing conditions and continue serving customers despite widespread disruption. 

Today, similar scenarios are emerging. If the US market becomes less viable due to tariffs, retailers may look to reduce their reliance and pivot to new regions. On a general level, evidence is emerging that these kinds of changes are already underway, with recent media reports suggesting that Chinese companies are “purging [the] supply of foreign parts” as a direct impact of the trade war. 

For some retailers, the prospect of long-term tariffs is prompting a broader reassessment of the US market. If duties increase to the point where pricing becomes uncompetitive, businesses may shift focus elsewhere. The question is no longer just about absorbing additional costs, it’s whether, under the circumstances, continued investment in the US can still deliver a viable return.

For the retail sector, in particular, taking proactive steps, such as entering new markets, requires more than just intent – it demands a supply chain that can scale and adapt quickly. Just as during the pandemic, businesses must be able to identify where stock is held and reroute fulfillment through the most efficient available option. There’s no doubt that retailers that were able to adapt during COVID are better placed to navigate the current challenges, while those that weren’t will need to reassess how resilient their supply chains are and make changes accordingly. 

Planning ahead 

For retailers looking at new and untapped markets to take up the slack, due diligence is essential. Any expansion decision must start with a clear understanding of the effective landed cost, including everything from duties, taxes and payment fees to return logistics and the broader cost of doing business in a new territory. Without that baseline, it’s challenging – and risky – to build a model that protects margin and supports growth. 

Take delivery infrastructure, for example, where savings made through lower tariffs can be quickly lost if fulfilment is unreliable. Last-mile delivery must be consistent and local distribution networks must be in place before market entry. The same applies to digital payments because, while global coverage has improved, businesses still need to assess issues such as accessibility, fraud risk and compliance for each region. 

Next steps

So, where does this leave retailers looking to move forward? Looking at fulfilment again, retailers are re-evaluating how and where they move products to minimise exposure and control costs. In some cases, it may be more cost-effective to ship from a store or a nearshore location rather than a central warehouse, while others may benefit from routing through jurisdictions with lower duty rates. Whatever strategy is applied, these decisions rely on having the infrastructure in place to act quickly, backed by systems that provide clear stock visibility across all channels. 

An effective order management system plays a central role here. The ability to change sourcing and fulfilment routes in real time, based on cost, availability or demand, gives retailers the flexibility to adapt as conditions evolve. Retailers who get these capabilities in place sooner rather than later will be much better placed not just to weather the current storm but to come out the other side much less exposed to unexpected changes in market conditions. 

A New Era of Fragility and Complexity

Global instability has become the new norm. From geopolitical tensions and pandemics to supply chain shocks, the traditional centralised, cost-optimised biotech manufacturing model has proven obsolete. Biotechnology is uniquely vulnerable – depending on specialised materials, sterile environments, and just-in-time coordination – making supply chain disruptions especially dangerous.

Yet having a global footprint doesn’t automatically translate into resilience. True robustness requires strategic design, not just geographic spread.

Lessons from Recent Disruptions

The past five years have delivered brutal lessons in supply chain vulnerability. COVID-19 created massive disruptions in raw materials, equipment, and labour, with specialised manufacturing sectors facing acute shortages of critical components. Post-pandemic recovery brought unexpected challenges: lead times doubled or tripled across industries as capacity constraints met surging demand.

The most surprising vulnerability proved to be global logistics itself. While companies routinely plan for supplier failures and capacity issues, the breakdown of intercontinental shipping – from port congestion to transport delays – caught many off guard. What had always been treated as reliable infrastructure suddenly became the weakest link.

The worst thing in our world is uncertainty. This uncertainty makes it impossible to make smart cash decisions or reliable customer promises. Companies found themselves investing heavily in safety stock, essentially throwing cash at inventory to buffer against unpredictable supply chains.

Cell and gene therapy manufacturing faced particular bottlenecks, with viral vector shortages and limited Good Manufacturing Practice (GMP) vector production capacity. Meanwhile, sterile injectable shortages – caused by FDA shutdowns over contamination – created widespread delays in monoclonal antibody launches and higher CMO pricing.

The Strategic Imperative: Multi-Regional Resilience

Smart manufacturers are now embracing multi-regional strategies that go beyond simple geographic diversification. The most effective approaches include:

Building Supplier Ecosystem Partnerships

Establishing secondary or tertiary suppliers across different political blocs while using digital platforms to monitor vendor health and capacity. Resilience has become the new efficiency. The companies that recognise this shift and invest accordingly will define the trajectory of manufacturing for the decade ahead.

The Compliance Complexity Challenge

An often-overlooked driver of supply chain transformation is the escalating burden of regulatory compliance. Companies now face significant investment requirements in product compliance infrastructure across multiple jurisdictions. From EU waste directives to regional chemical disclosure requirements, the regulatory landscape demands more than transactional supplier relationships.

This shift is forcing procurement strategies toward what industry professionals describe as “stickier and more trustful relations” with suppliers. The days of simply chasing the lowest cost are giving way to partnerships where suppliers can help certify regulatory compliance across evolving standards. Companies need suppliers committed to evolving alongside changing regulatory expectations, not just delivering components at the best price.

Strategic Nearshoring and Local Sourcing

The lesson from recent disruptions is clear: sites with regional supply chains proved more resilient than those requiring intercontinental movements. Companies are now increasing use of local suppliers for critical materials while co-locating key suppliers near manufacturing hubs to reduce transit risk and lead times.

Dynamic Inventory Management

Moving from “just-in-time” to “just-in-case” inventory strategies. Companies now maintain strategic stockpiles of high-risk components like filters, lipids, and sterile bags, rotating stock regularly to avoid obsolescence.

Regulatory Harmonisation

Designing facilities to meet the strictest overlapping standards (Food and Drug Administration and the European Medicines Agency) while maintaining validated tech transfer protocols between regions and proactively engaging regulators to streamline cross-border approvals during emergencies.

New Decision-Making Criteria

Traditional site selection focused primarily on cost optimisation. Today’s criteria have evolved dramatically. When considering new facilities, cost to operate remains a key component, but equally important is the potential location’s pool of skilled, willing, and able workforce – including competent talent for blue collar roles who will be depended on to physically make the product and professionals who will run all aspects of facility operations.

The secondary criteria focus on infrastructure maturity: ease of inbound/outbound transportation, stability and scale of local utilities, weather resiliency, and proximity to other established businesses that have complementary products or services.

This shift reflects hard-won lessons about the true cost of disruption. Companies are now willing to accept higher unit costs for lower supply risk, especially when total-cost models demonstrate the value of resilience over pure efficiency.

Technology as an Enabler

Digital transformation is enabling more sophisticated resilience strategies. Smart components with IoT interfaces, real-time supply chain visibility, and predictive analytics are becoming standard tools for managing distributed operations.

Key developments include automated bioreactor control systems, smart pumps with remote monitoring capabilities, and AI-driven process optimisation ensuring consistency across global sites. However, cybersecurity has emerged as a critical vulnerability, with digital systems becoming prime targets for attacks that can halt production.

Future-Proofing Against the Regulatory-Industrial Gap

Looking ahead, one of the most significant risks facing procurement professionals may be the growing disconnect between regulatory timelines and industrial innovation capacity. Well-intentioned regulations around environmental and health safety are increasingly outpacing industry’s ability to develop viable alternatives.

Consider this scenario: critical materials that enable specialised manufacturing processes face potential bans before replacement materials exist. Industries requiring chemical-resistant components, for example, depend on materials that are increasingly scrutinised by regulators. The first organisation to solve these material science challenges will gain substantial competitive advantage, but the transition period poses significant supply chain risks.

This regulatory-industrial synchronisation gap extends beyond any single sector. From automotive to electronics, industries face the challenge of maintaining functionality while adapting to evolving material restrictions. Procurement professionals must now factor in not just current compliance, but the trajectory of regulatory development and their suppliers’ innovation capacity.

The Competitive Advantage of Resilience

Supply chain robustness is no longer a back-office function – it’s core to product availability, pricing stability, and public trust. In a world of accelerating disruption, biotech companies investing in resilient, diversified, and digitally integrated global operations will not only survive but lead.

Advice for every CPO in 2026: take proactive actions to regularly validate your current reality with the ever-evolving view of the future. This will help you see when the right time exists to take a bold step in a different direction and will help your leadership team have clarity on where the biggest vulnerabilities exist.

Resilience has become the new efficiency. The companies that recognise this shift and invest accordingly will define the trajectory of biotech manufacturing for the decade ahead.