The role of procurement has changed fundamentally over the last decade. While it traditionally focused on cost optimization, the procurement function is now facing a paradigm shift driven by external crises, geopolitical events and a dynamic global manufacturing landscape.

These disruptions have highlighted the vulnerability of supply chains and emphasized the need for adaptable procurement mechanisms that can address different performance dimensions such as supply security, quality assurance and sustainability, among others. Companies recognize the imperative for change, but so far have been slow to implement measures at the strategic or operational levels. To succeed in such disruptive times, they must develop a flexible and dynamic approach that recognizes the multi-dimensional challenges of procurement. This requires a nuanced prioritization and adjustment of performance targets according to the supply stability of the industry they operate in.

This article explores the changing dynamics of the procurement function, highlighting its critical role in orchestrating the entire value network. It also discusses how an adaptive operating model is required to manage the complexity of the modern supply environment.

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