Rediscovering Procurement’s Purpose: why are we really here?!

Moving beyond shiny objects and Spend Cubes

Procurement has a role at the executive table. We’ve heard it time and time again in numerous LinkedIn posts and in presentations……..Sure....

Sure…the function needs to get a seat at the table, speak strategically, and influence business decisions. But let’s be honest. The question isn’t just about sitting at the table; it’s about what we’re bringing to it. When was the last time we challenged ourselves to ask: “Why does this department exist? What true purpose do we serve?”

Instead of becoming indispensable to the company’s mission, we’re often distracted by managing spend cubes, categorizing spend and suppliers, and setting up KPI dashboards that serve little purpose outside of Procurement itself.

We’re running around following trends, deploying tech that promises the world but rarely considers the core purpose of Procurement. We need to recalibrate; and I believe it starts by returning to the WHY behind our work.

The essential Question we keep forgetting: Why does procurement exist?

Procurement isn’t here simply to monitor spend or enforce policy. We’re here to drive a meaningful impact on the business. Our ultimate mission ties back to the simplest business formula: P = R - C (Profit = Revenue - Cost). If our actions don’t support this equation’s essence, we’re just adding noise.

Why are we spending this money? Every dollar represents a choice, a path either to growth, efficiency, or risk. Our role isn’t merely to trim costs but to align spending with strategic goals that propel the business forward. Yet, what I see too often is Procurement chasing categories, scrutinizing tiny costs, or implementing the latest solution as if that alone makes us valuable.

Our real value lies in asking: Does this spend serve a purpose? Procurement’s role is to make sure that every contract, every vendor, and every dollar invested actively contributes to the broader goals of the business. Are we making that happen, or are we too busy tracking metrics that don’t move the needle?

Procurement Leadership: are we talking about the WHY with our Teams?"

It’s time for Procurement leaders to step up and refocus their teams on our core purpose. Every individual in Procurement should be able to answer these questions: Why are we here? Why do we exist in this company? If the answer is “to manage spend,” we’re missing the point. Our job is:

• to build relationships that add value,
• create resilient supply chains that enable the business to thrive,
• and ensure our spend aligns with our company’s vision.
• Let’s not lose sight of the bigger picture by getting caught up in shiny new tools or jumping at the next trend. Solutions without a strategic business case are just distractions. As leaders, our responsibility is to keep our teams focused on why they do what they do…….not just what they do. Building a strong, purpose-driven team starts by reinforcing Procurement’s true impact on the business.

Challenging the Status Quo: are we willing to abandon what doesn’t work?

The truth is, traditional Procurement metrics and approaches can’t keep up with modern business demands. We can’t afford to be stuck in a 20th-century mindset. Are we truly measuring value, or are we just ticking boxes on internal KPIs that have no relevance outside our own walls?

Procurement’s role is evolving, and to stay relevant, we must focus on impact…..not activity. We need to shift from chasing numbers to making decisions that support long-term value creation. This isn’t about implementing every new tool or getting bogged down in endless dashboards. This is about acting as the guardians of purposeful spending. If we’re not asking, “What does this spend achieve?” we’re merely adding to the company’s overhead.

Recalibrate, Refocus, and Remember the WHY

Let’s face it: if we don’t know the WHY, we’ll never truly be strategic partners to the business. We’ll remain the “cost police,” constantly chasing savings without understanding the bigger impact of our decisions. The WHY should drive every project we take on, every solution we consider, and every vendor we engage.

The next time you’re faced with a new technology or a flashy solution that promises “Procurement excellence,” ask yourself: Does this bring us closer to our mission? If not, perhaps it’s time to refocus on what really matters. Our responsibility isn’t to adopt every new tool on the market but to deliver measurable, strategic value.

It’s time to challenge ourselves, our teams, and our leaders to rediscover Procurement’s purpose and commit to bringing the WHY back into every decision we make.

Final Call to Action

Is your team connected to the WHY behind their actions? Is your Procurement function truly strategic, or are you just managing spend? It’s time to reconsider our mission and remind ourselves why Procurement exists in the first place. Share your thoughts below…..

let’s start a conversation about Procurement’s real purpose.