Beyond Cost-Cutting: The New Face of Strategic Procurement

Procurement is evolving from a purely tactical function to a strategic business partner, professionals face new challenges and opportunities across multiple fronts. From extracting maximum value from consulting partnerships to managing tariff disruptions and preparing for significant role transformations, today's procurement leaders must navigate an increasingly complex landscape.

Natasha Gurevich, Founder and CEO of Candor Procurement, explores how teams can drive greater value, build resilience and prepare for the function's rapidly changing future.

Building truly collaborative consulting relationships

According to Natasha, one of procurement's most common challenges when working with consultants stems from unclear expectations and misaligned objectives at the outset of engagements.

"There is a lack of clarity around the scope and vision of what they're seeking. Entering an engagement without a clear definition of success often leads to misaligned expectations and disappointing outcomes," she explains.

This challenge is often compounded by consultant behaviour that can undermine trust before work begins. "On the consulting side, firms sometimes offer templated solutions that feel generic and impersonal, which can be interpreted as a lack of genuine investment in the client's needs," Natasha notes.

She further identifies a crucial disconnect that frequently occurs: "There's also often a gap between who sells the engagement - typically seasoned partners - and who delivers the work, which is more often than not less experienced talent. That mismatch can create skepticism and erode trust before the work even begins."

To overcome these barriers and establish genuinely collaborative partnerships, Natasha recommends procurement leaders take specific actions:

"To get full value from a consulting engagement, procurement leaders must clearly articulate the vision and expected deliverables, share relevant information more openly - procurement often holds back too much - and be explicit in signaling that innovation and creativity are expected, not just a repackaging of what's already known."

She emphasises the importance of transparent communication: "Consultants respond to clear direction and strategic challenges. Communicate with them honestly and openly and you'll get far more than a standard slide deck."

Moving beyond cost-cutting to strategic advisory

While cost optimisation remains a core procurement function, Natasha suggests that leveraging consultants purely for cost-cutting misses significant opportunities for broader business impact.

"That mindset shift must start with understanding your actual needs and how you frame the engagement," she advises. 

"There's nothing wrong with bringing in consultants purely to optimise cost, especially if that's a current organisational priority. But if you're solving for a more complex or transformational challenge, the approach needs to be different."

When selecting consulting partners for strategic initiatives, Natasha recommends focusing on three critical factors: 

• Practical experience and a strong track record 
• Established trust, 
• Deep subject matter expertise.

She emphasises the importance of clarifying why external support is needed: "Be clear on why you're augmenting your team: Are you looking for missing expertise? Validating your strategy? Learning best practices? Seeking innovation or a hands-on partner rather than more slides? Once the purpose is defined, find a partner whose expertise naturally aligns with your goals. That's how you get real value, far beyond traditional cost savings."

Maximising learning and long-term value

To extract maximum learning, innovation and long-term value from consulting relationships, Natasha recommends beginning with careful partner selection, stopping the familiar patterns that might limit fresh perspectives.

"Break the habit of defaulting to those you already know - they may represent comfort but not always the best fit for the task," she advises.

Once partnerships are established, structured communication becomes essential: "Create a rhythm of transparent, two-way dialogue. Schedule structured check-ins not just to track milestones but to ensure alignment and surface blind spots. Share feedback in real time - what's working, what's not - and create space for your provider to do the same."

Natasha also highlights the value of maintaining relationships beyond project completion: "Many consultants advise without staying through execution. Don't hesitate to re-engage them afterward. True partners won't nickel-and-dime you - they take pride in elevating your organisation."

Responding to tariff disruptions

With tariff disruptions becoming an increasingly common challenge for global supply chains, with the landscape shifting from one day to the next, Natasha recommends focusing on exposure analysis: "Understand which suppliers, materials and geographies - and, by extension, which products - are at risk. Then assess where costs can be absorbed, contracts renegotiated or sourcing shifted. If affected areas are locked in, look elsewhere in the portfolio for sourcing opportunities to offset the pressure."

She emphasises the critical importance of proactive scenario planning: "Build a 'what-if' muscle now, not later. As Warren Buffett once said, 'Someone is sitting in the shade today because someone planted a tree a long time ago.' If your company wasn't prepared for today's tariffs, there may be little to do now - but history shows that some major disruptions happen every five-six years. Planning today builds resilience for tomorrow."

When renegotiating with suppliers during disruptions, Natasha recommends an approach rooted in mutual problem-solving: "Transparency, communication and trust are the keys that need to be nurtured well before disruption hits. In tough times, suppliers prioritise partners they trust. Build respectful, long-term relationships now, so that support is mutual when it counts.

"Frame renegotiations as a problem-solving, not cost-cutting. Openly share your pressures related to tariffs, inflation and regulatory shifts so you can jointly develop a solution. This approach will deepen partnerships."

Effective scenario planning for future disruptions

Given the likelihood of future tariff changes and other disruptions, Natasha recommends cross-functional risk assessment as a standard practice rather than a reactive measure.

"Assemble cross-functional teams that include procurement, finance, risk and supply chain. Use real-time data to model outcomes, such as tariff hikes, exemptions, logistics shifts and stress-test sourcing strategies," she advises.

Looking beyond immediate financial impacts, Natasha suggests: "Don't just model cost - model risk, agility and resilience. Make it a habit, not a reaction. And engage your strategic suppliers - they're often your best source of market insights and industry benchmarks."

Future-proofing procurement talent

Perhaps the most significant challenge facing procurement leaders is preparing their teams for dramatic functional changes expected over the next five years. Natasha identifies several essential capabilities for future success.

"Critical thinking, data fluency and tech-savviness are essential. Traditional sourcing skills won't be enough. You need to interpret data, build AI prompts, hold strategic conversations and challenge the status quo. Above all, stay curious. The best professionals are constant learners," she explains.

For professionals struggling with technological changes, particularly those from generations that didn't grow up with digital tools, Natasha offers both empathy and a challenge: "If tech intimidates you, lean into it. Many Gen X leaders - who didn't grow up with devices in their hands - will have to learn how to build AI agents just to stay competitive. I'm going through it myself. It's a leap all right, but it's the only way to stay relevant."

Looking ahead, Natasha envisions procurement's expanding influence across organisational functions, with implications for both talent development and team structure.

"I look forward to the day when procurement isn't just about savings but about revenue impact. That evolution will embed procurement deeper into product, finance, legal and yes, even marketing," she says.

As procurement becomes more integrated with other business functions, Natasha believes different skills will become increasingly important: "As teams grow more cross-functional and commercially aware, the focus will shift to influence, storytelling and enterprise thinking. These capabilities will keep the function relevant and position Procurement as a natural hub for collaboration."

Leading through transformation

For procurement leaders navigating this period of significant change, Natasha emphasises the importance of personal example and vision-setting.

"Lead by example. If you want your team to embrace AI, use it. If you want agility, stop clinging to rigid processes. Invest in learning, for yourself and your team," she recommends.

"Build a culture that rewards experimentation and cross-functional thinking. And don't wait for others to define what's next - set the vision, explain it, stand by it. Then evolve again."

To read the full article in the magazine, click HERE.

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