How Procurement Leaders can Drive Purpose-Driven Leadership

In an era of rapid digital transformation and evolving global regulations, procurement has become more than just a cost-cutting function. It's a strategic lever for innovation, sustainability and organisational resilience.

Speaking to Procurement Magazine, Markus Hornburg, SVP Global Compliance at Basware, sheds light on how modern procurement can drive value beyond traditional boundaries.

Please introduce yourself and your role

I'm Markus Hornburg, SVP Global Compliance at Basware. I lead the charge in ensuring our compliance solutions empower customers to navigate the evolving landscape of global e-invoicing requirements with confidence. My role centres on enhancing Basware's compliance offering to help customers meet regulatory standards worldwide.

Prior to joining Basware, I gained more than two decades of experience in consulting for diverse organisations across both public and private sectors. This included working with service and software providers in the AP and compliance domains. My expertise encompassed a broad spectrum covering all aspects of spending for organisations, as well as the design and introduction of new innovative solutions on a global scale.

What strategies can procurement leaders implement to balance short-term cost savings with long-term value creation?

Procurement leaders can balance short-term cost savings with long-term value creation by using technology, especially automation and AI. Tools like Basware's accounts payable automation and invoice processing help streamline procurement processes, reduce manual work, lower costs and free up resources for more strategic tasks.

Compliance plays an important role here by ensuring these tools meet regulatory requirements, reducing the risk of penalties or disruptions. For example, our research found that 73% of companies using AI report better regulatory compliance, reducing the risk of costly fines or penalties and strengthening supplier relationships.

However, it's important to note that AI isn't regulated for compliance so it should be used as a support tool for tasks such as data analysis that can inform compliance professionals.

Making sure technology investments match the company's overall strategy is crucial for long-term success. When procurement efforts align with business goals, companies get the most out of their technology. In the short term, this means saving money and streamlining processes, while in the long term, it drives growth, resilience and competitiveness.

How can procurement practices be aligned with a company's brand values to enhance customer trust and loyalty?

Brand value alignment is the bedrock of a strong customer relationship. Increasingly, businesses are demanding that partners and prospects meet certain compliance and ESG criteria – such as fair labour practices, carbon reduction and local community support – that align with their owner companies, moving compliance from a 'nice to have' to an important business driver.

Transparency in the procurement process is key. Communicating how suppliers are selected and how sustainability and ethical practices are prioritised can build customer trust. Additionally, ensuring that products or services meet quality standards and align with the company's brand promise reinforces the message that the company is true to its values.

In addition, ensuring products or services meet quality standards strengthens the message that a company delivers on its values. Procurement teams, supported by robust compliance frameworks, play an important role in reinforcing this trust.

How can procurement teams leverage supplier relationships to foster innovation and drive product development?

It's important to work closely with customers and suppliers to understand their specific needs through feedback loops and idea sharing in order to lead product strategy. This encourages innovative ideas, bringing in suppliers from day one of the product development processes and addressing the specific requirements of customers, as well as their customers' customers.

A strong supplier ecosystem can also encourage the sharing of technologies and ideas, especially in fast-developing areas such as AI, to build joint best practices. Treating suppliers as strategic partners can help to pool resources, bring a new understanding of the market and unlock new areas of innovation.

What specific procurement strategies can help organisations remain resilient during economic downturns or supply chain disruptions?

To remain resilient during economic downturns or supply chain disruptions, organisations must leverage technology to improve efficiency and adaptability. Research shows that 70% of finance leaders recognise the need for AI to support administrative tasks, reducing the burden of manual processes on their teams.

Additionally, 75% report that AI has empowered their workforce to focus on more strategic activities, such as ensuring e-invoicing compliance – an essential factor in maintaining supplier relationships and mitigating financial risks. By investing in AI-driven solutions, procurement leaders can streamline operations, improve compliance and drive resilience and long-term value.

Regularly assessing supplier stability and conducting proactive risk assessments allows organisations to stay ahead of potential issues. This ensures a steady supply of critical goods and services while preparing procurement teams to manage shifts in economic conditions.

How can procurement contribute to sustainability initiatives and what metrics should be used to measure success?

Procurement can play a key role in supporting a company's sustainability initiatives by focusing on environmentally and socially-responsible practices, including selecting suppliers which are compliant with eco-friendly materials, actively reducing carbon emissions and promoting sustainability throughout their own operations.

By sourcing sustainable products and partnering with suppliers who share these values, procurement teams directly contribute to the company's sustainability goals. Additionally, procurement can help reduce waste by optimising inventory management and choosing products that are more durable or recyclable.

To measure success in sustainability, companies can track metrics such as the percentage of sustainable suppliers, reductions in supply chain emissions and waste diversion rates. These metrics help ensure that procurement practices are aligned with broader sustainability objectives.

How can procurement leaders promote a culture of purpose-driven leadership within their teams?

Procurement leaders can promote purpose-driven leadership by integrating sustainability and ethical values into decision-making and setting clear goals around fair labour practices, environmental impact and community support.

By prioritising ethical practices like fair trade partnerships and local initiatives, companies enhance their reputation, build strong supplier relationships and meet growing consumer demand for responsible operations. This fosters sustainability, attracts top talent and boosts customer loyalty.

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