In this exclusive article for PASA, Miroslav Pitlanic, Founder of SPL Partners, explores moving procurement into its rightful place as a strategic enabler.
Procurement often gets associated with one main task: cutting costs. And while that’s still an important part of the job, it no longer tells the full story.
Today, procurement is uniquely positioned to create value, build resilience and drive change across entire organisations. Yet in many companies – regardless of size or sector – procurement is still underutilised, underrepresented or misunderstood.
I’ve worked with businesses across Europe and beyond, and the pattern is surprisingly similar: When procurement is viewed as just a transactional function, opportunities are missed.
So how do we shift this perception? How do we move procurement into its rightful place as a strategic enabler?
1. Start with business needs, not just spend data
Many procurement teams start with spend analysis. That’s useful, but it’s not enough. Understanding what the business truly needs – its goals, risks, market pressures and future plans – is the foundation for building a procurement strategy that supports growth, not just savings.
Talk to stakeholders. Understand their frustrations and ambitions. Procurement isn’t about just buying things; it’s about enabling performance.
2. Focus on value, not just price
A lower price doesn’t always mean a better deal. Value comes in many forms: quality, reliability, innovation, sustainability and speed to market. Strategic sourcing means balancing cost with long-term value creation. The best procurement professionals I’ve worked with are not just negotiators; they’re connectors, advisors and problem-solvers.
3. Develop supplier relationships, not just contracts
Suppliers aren’t just vendors; they’re partners. Building strong, trust-based relationships with key suppliers can unlock innovation, reduce risk and create real competitive advantage.
I once had a supplier walk away from a critical contract with no notice. It was a hard lesson, but it taught me that supplier engagement needs to go far beyond the tender process. It’s an ongoing dialogue, not a checkbox exercise.
4. Bridge the gap between strategy and execution
Procurement sits at the intersection of planning and delivery. We see the internal goals and we deal with the external realities. That puts us in a unique position to drive strategy forward – if we’re willing to speak up, share insights and collaborate beyond our function.
To do that, procurement needs to stay commercially aware, adaptable and close to the business pulse.
Procurement is changing – and rightly so. What’s needed today is not just cost-cutting, but smart, agile and future-ready thinking.
Whether you’re in Australia, New Zealand or anywhere else, the challenges are increasingly similar: supply chain disruption, sustainability pressures, rising costs and changing stakeholder expectations.
The good news? Procurement can help tackle all of them – if we let it.
Follow Miroslav Pitlanic for more actionable procurement insights.
