The past 20 years have seen some radical changes to the ways organisations structure and operate their value chains. Financial crises, geopolitical conflict, digital transformation, worsening climate change, and the jarring impact of the COVID-19 pandemic — have all profoundly altered the way companies navigate the procurement process. For those working in the procurement sector, the world looks very different compared with the one at the turn of the millennium. So too does the procurement process.
A whole new approach to procurement
“When I started in this field 20 years ago, our focus was very different. Back then, we were called the buying department, and we were measured strictly by how much money we saved the company,” explains Lukasz Olszewski, Head of Procurement at Keltbray Infrastructure Services Limited (KISL).
This process of mechanically buying with a focus on cost savings often occurred at the expense of other factors, Olszewski explains. He compares it to measuring the quality of life in a society solely using GDP: “Cost alone is not an accurate way to gauge procurement success because it is not holistic.” Olszewski came to the UK in 2004, spending the subsequent two decades in roles across virtually every level of the infrastructure procurement space, from labourer to KISL’s Head of Procurement. In the past 20 years, Olszewski explains, he’s seen procurement shift from a focus on savings “to a more holistic, strategic role,” within the business, increasingly becoming involved in the project planning and business execution stages.
“Over the years, procurement has changed a lot. It used to be about receiving a requisition and buying the equipment for the lowest price possible,” he says. “Now, it’s about pre-qualifying the supply chain, ensuring suppliers have the relevant certifications, maintaining strong relationships, regularly reviewing performance, and discussing future opportunities. We make sure they have the capacity to meet our needs and those of our clients, address issues openly, and work on continuous improvement in both service quality and safety behaviours. The supply chain’s approach to sustainability and decarbonisation is also a major factor, as it’s critical to our own values and those of our clients.”
The mindset in businesses toward procurement has changed, too.
While historically procurement only joined a project once it was “live,” today it’s much more common for procurement to start at the work-winning stage, allowing the function to lay the groundwork for a successful project. “Today, many organisations want procurement involved as early as possible,” Olszewski says, noting this applies to both direct project-related expenses and indirect spend, like HR and IT contracts. Most importantly, he adds, procurement is also “increasingly involved” in other critical goals, from measuring and reducing the business’ carbon impact and finding sustainable product options, to managing waste, and adhering to ESG standards, including fair treatment and equal opportunity.
“Frankly, it’s a massive shift,” Olszewski says. “Procurement is now a team effort, integrated with operational, commercial, technical, health and safety, sustainability, and ESG teams.” Where procurement once fulfilled orders at the lowest possible price, today the function serves as a central hub—connecting departments and the supply chain to find solutions that benefit the business and our clients as a whole.
Just as the procurement process has changed, so too has KISL. Recently spun out from Keltbray and bought out by EMK Capital, KISL is embarking on a new chapter defined by strategic procurement, ESG leadership, and widespread decarbonisation in its value chain. Olszewski and I sat down to discuss KISL’s decarbonisation journey, the challenges ahead, and managing change in a world where nothing stays the same.
Meet KISL
Purchased by EMK Capital in August of 2024, KISL is undergoing a strategic realignment and expansion following its spin-out. Olszewski explains that KISL’s new owners are an exact fit for the company at this new stage of its journey. “EMK Capital is a fantastic owner for us,” he says. “They believe in what we do, they’re supporting us, and they obviously want to grow the business.” He adds that EMK is also deeply aligned with KISL on its decarbonisation and ESG objectives, which reflect the expectations of key clients, including National Highways, Network Rail, and multiple Distribution Network Operators across the energy sector.
KISL’s strategic focus is on energy decarbonization, security and the digitalisation of strategic infrastructure in three main sectors: rail, energy, and highways (including local government projects).
In the rail sector, KISL’s offerings centre on E&P (Electrification and Plant) and E&C (Engineering and Construction), covering all electrification projects and civil engineering. With the recent acquisition of Linbrooke, KISL have expanded their E&P capabilities to include signalling and communication telecoms, allowing them to offer Network Rail a turnkey solution for energy and power projects, track, and civil engineering.
In the energy sector, the company provides a comprehensive service, including overhead line schemes, substations, and underground cable systems for distribution network operators as well as energy storage clients throughout the UK and Ireland.
For highways, as the name suggests, KISL handles road infrastructure, recently completing a major project near Leeds on the M621 and collaborating closely with local councils on various road and public space schemes.
