How to make sure procurement is driving company performance

With the right relationships, technology and processes in place, a well-functioning procurement team should be a catalyst to business innovation and performance. But, an outdated function can lead to procurement being seen as a blocker. 

One of the key tasks for a modern procurement leader is therefore to build a function that goes beyond cost-cutting to drive performance and unlock value across the organization. 

During a recent webinar hosted by James Moore from the Chartered Institute of Procurement and Supply (CIPS), we heard advice from a panel of procurement experts on how to construct procurement functions that materially improve business performance.

Where does your procurement stand?

Before the event, attendees assessed their organization’s procurement maturity using Vertice’s Procurement Maturity Self Assessment - a free questionnaire for procurement leaders to benchmark themselves against the rest of the industry. 

The average score for attendees was 3 out of 5, with challenges in intake, routing, and supplier benchmarking revealing room for improvement.

Read on for the top takeaways from Martin Ward, Senior Manager of Global Procurement and Digital Enablement at Roche, Rachel Willacy, Director of Procurement at Aster Group, and Nick Riley, Global Head of Purchasing at Vertice, on how to elevate your overall procurement performance.

1. Start with a clear vision 

A high-performing procurement team can’t thrive in isolation - it must align with the broader mission of the organization. 

Martin Ward, whose company Roche scored a level 5 on the procurement maturity scale, argued that “procurement isn’t just about cost savings - it’s about solving real-world problems.” 

Martin explained that Roche was forced to rapidly mature its procurement function during the COVID pandemic. A key part of Roche’s procurement success has been aligning the function’s activity with the company’s overall vision, which has helped the procurement team perform as a unified global function:

“At Roche, we aim to improve health outcomes and reduce costs for patients and healthcare systems. All of our activity in procurement is linked to this goal; we have an empty seat in strategy meetings which symbolizes the patient and how we can help them.”

2. Build partnerships, not transactions

Strong procurement hinges on understanding a stakeholder’s goal and offering them strategic advice. It’s a partnership, not a transaction. 

In Rachel Willacy’s words:

“A solution-oriented procurement function is one that people trust and engage with.”

Rachel believes that instead of pushing for procurement’s seat at the table, leaders should focus on integrating procurement into every core function. She advises procurement leaders to:

• Spend time understanding challenges faced by internal and external stakeholders.
• Propose practical solutions that resonate with their goals.
• Communicate progress consistently through reports and updates to keep stakeholders aligned.

3. Prioritize collaboration with suppliers 

One significant challenge many organizations face in procurement is the effective management of supplier relationships. Too often, these relationships are viewed through a purely transactional lens - focused only on cost and immediate needs - rather than as strategic partnerships that can drive long-term value.

Nick Riley believes that prioritizing relationships with third-party suppliers is an important part of unlocking value: 

“Suppliers often bring more to the table than you may realize. Take the time to understand the broader problems they can solve for your organization. Ask them about solutions you may not have considered and tap into their expertise to explore ways they can help you innovate or improve processes.”

However, this level of oversight and collaboration is not a side project - it’s a full-time responsibility. Assign ownership to your procurement team or consider outsourcing to a third-party service that can provide continuous monitoring and value assessments. This ensures that you’re consistently getting the best performance and ROI from your suppliers.

4. Invest strategically in technology

Procurement leaders have endless opportunities to enhance their team’s performance with technology, but a thoughtful approach is key. 

Nick urged organizations not to advance blindly and spend time identifying quick wins alongside long-term goals.

“Consider who does what, when, and how long they need to do it. Then organize in line with overall workflow timescales, and who is before or after them in the process so they can prepare for handovers. Coordinating this effectively can create a smooth and seamless workflow.”

Stand out from the crowd 

While procurement’s role is rapidly evolving from a cost center to a performance driver, these tactics will ensure you stay on track to finish – and win - the race. 

By focusing on purpose, partnerships, and progress, your procurement team can become an indispensable part of the organization. Or as Nick summarized:

“Focus on outcomes, get an understanding of what people want to achieve and fix it, and you’ll be a hero!”

Want even more tips? Take the Procurement Self Assessment Maturity Quiz to get personalized advice on how to improve your company’s procurement performance.