Procurement’s Next Act - From Saving Costs to Shaping Strategy

“Procurement’s true power lies not in what it saves—but in what it enables.” Once confined to the margins of cost control, procurement has stepped into the spotlight as a catalyst for enterprise transformation. It now defines how organizations think about resilience, innovation, and purpose in an increasingly volatile world. In just a few years, the function has evolved from managing contracts to curating ecosystems—where data informs decisions, relationships drive innovation, and sustainability becomes a measurable advantage. Today’s procurement leaders aren’t just negotiating better deals; they’re shaping how value is created, how risks are shared, and how business priorities are reimagined for the long game. This Cover Story explores how procurement is transforming from a transactional necessity into a strategic powerhouse—one that wields influence not through budgets, but through vision, insight, and impact.

Procurement has come a long way from being a silent enabler in the corporate machinery to becoming one of its most dynamic strategic engines. The forces reshaping the function are clear — geopolitical flux, supply chain shocks, digital acceleration, and the climate agenda have all converged to redefine what value means. The modern procurement leader is no longer measured by how much they save, but by how fast they can pivot, how effectively they can collaborate, and how deeply they can align decisions with business purpose.

Over the past five years, the procurement playbook has expanded dramatically. AI, predictive analytics, and blockchain are enabling unprecedented visibility and control across supplier networks. Supplier diversity and ESG metrics have become central to sourcing decisions, reflecting a deeper accountability to society and stakeholders alike. And as organizations move from linear to networked supply chains, procurement is emerging as the orchestrator of trust and transparency—bridging innovation, sustainability, and strategic growth.

In this environment, leadership itself is being redefined. The new procurement professional must be part technologist, part strategist, and part diplomat—balancing data with discernment and relationships with resilience. The question is no longer whether procurement can add value, but how it can multiply it—by driving competitive advantage, unlocking innovation, and shaping the organization’s future readiness. This conversation with leading procurement voices explores that evolution in action—how the function is shifting from cost to capability, and what it truly takes to lead in this new era of intelligent, purpose-driven procurement.

Over the last five years, how have you seen procurement evolve, and what have been the biggest changes from your industry perspective?

The past five years have marked a defining inflection point for procurement. What was once a cost-control discipline has matured into a strategic nerve center driving resilience, innovation, and stakeholder value. The focus has shifted from transactional efficiency to ecosystem intelligence—where supplier partnerships, risk visibility, and data-driven decisions have become core differentiators. This evolution has not only elevated procurement’s seat at the leadership table but also redefined how industries measure value and performance.

Amol Polke, Global Head Procurement, Piramal Pharma Solutions: If I look back at the past five years, procurement has gone through nothing short of a transformation—particularly in the pharma sector, where the stakes are higher given our direct connection to human health. Having worked across major pharma organizations for over two decades, I can say with conviction that the procurement function today is almost unrecognizable compared to the pre-COVID era.

Before the pandemic, procurement was largely synonymous with purchasing. The focus was transactional—getting the right product at the lowest price. Savings were the dominant metric. But the pandemic exposed the limitations of that approach. Suddenly, it wasn’t just about cost—it was about resilience.

During COVID, our over-dependence on single sources of supply became painfully clear. We faced situations where material availability was uncertain, logistics were disrupted, and production continuity was at risk. This forced us—and the entire industry—to think differently. We had to take quick, decisive calls on alternate sourcing, diversify our supplier base, and actively evaluate make-versus-buy strategies. Outsourcing models were re-examined, not only from a cost perspective but also for their ability to enhance resilience.

Another defining shift was digitalization. The pandemic era made remote work unavoidable, but paradoxically, it brought the world closer. Suddenly, procurement leaders were managing global supplier relationships, negotiations, and strategy reviews entirely through digital platforms—Zoom, Teams, and beyond. This accelerated the adoption of digital procurement tools and created a culture where data and connectivity became central to decision-making.

For pharma specifically, the rise of analytics and market intelligence platforms has been a true game changer. Earlier, decisions were often driven by experience and cost benchmarks. Today, advanced analytics provide visibility into supply risks, market trends, price volatility, and supplier performance. This shift from intuition-driven to data-driven procurement has elevated the function to a far more strategic role.

So, if I were to distil the biggest changes:

From cost savings to resilience: Procurement is now about ensuring business continuity and supply security.

From transactional to strategic: Sourcing decisions today involve broader considerations such as risk diversification, sustainability, and innovation.

From traditional to digital-first: Technology has redefined how procurement operates, from collaboration to analytics.

In many ways, procurement has moved from being a support function to being a value creator. For the pharma sector, where supply chains are complex and global, this evolution has been critical to keeping us agile, future-ready, and resilient against disruptions.

Nikhil Puri, Sr VP – Direct Purchase, Yokohama ATG: When COVID struck, the world came to a standstill. None of us knew when or how the crisis would end. As operations gradually resumed and people started returning to offices, one realization became clear: there was no such thing as post-COVID. We had to learn to operate with COVID—to accept uncertainty as a constant and build systems that could thrive within it.

That mindset shift was fundamental. We went back to the basics of supply chain triangle – Cost, Service and Cash Flow. These levers have always defined procurement, but the pandemic forced us to integrate them more thoughtfully, balancing at least two at any given time rather than focusing on one in isolation.

On the cost front, the real breakthrough came from redefining globalization. For us, globalization wasn’t about chasing the lowest cost in one region—it meant true diversification. We segmented the world into regions—China, Southeast Asia, Europe, the Americas, and the Middle East—and built supply bases in each. For every major commodity, we now have multi-regional sourcing options. This transformation didn’t happen overnight; it took extensive stakeholder alignment and months of groundwork. But today, unlike in the pre-COVID era, our sourcing is genuinely global. If disruption strikes one geography, we can seamlessly pivot to another, without jeopardizing continuity.

On serviceability, we reframed the role of inventory. Traditionally, inventory was seen as a necessary evil—an added cost. But in volatile times, it became a strategic shield. We created a three-tier inventory model:

• Inventory in hand at our warehouses,
• Inventory in transit, and
• Inventory at the supplier’s end.

This model gave us built-in elasticity, allowing supply cycles to flex from 45 days to 90 or even 120 days depending on the situation. That flexibility turned inventory from a burden into a strategic advantage.

On the delivery side, we brought agility closer to our plants. By creating near-hubs and stocking points across India—through vendor-managed models as well as our own facilities—we ensured faster responsiveness and minimized production risk, even amid global transport bottlenecks.

The cumulative impact of these changes is profound. Today, geopolitical tensions or trade disruptions do not trigger panic—they’re simply part of the landscape. In fact, within our teams, such events are often discussed as routine business scenarios, not crises. That confidence comes from the resilience and flexibility we have embedded into our procurement systems. In essence, procurement has evolved from being reactive and cost-driven to being proactive, resilient, and strategically global. It’s no longer about responding to disruptions; it’s about being ready for them before they arrive.

Subodh Nagarsekar, VP - Procurement & Supply Chain, Rentokil PCI: The pandemic has been a turning point for procurement and supply chain management. For years, procurement was viewed primarily through the narrow lens of the golden triangle: revenue, profitability, and sustainability. But before COVID, the emphasis was overwhelmingly on the first two vertices—growth and margins. Post-COVID, the focus has expanded to include the third, equally critical element—sustainability.

And I use “sustainability” in a broader sense than just ESG. It is about building operational sustainability—ensuring that systems, processes, and ways of working are resilient, adaptable, and future-proof. If organizations can’t build operational continuity into their procurement and supply chain structures, even the most profitable strategies won’t last in the face of disruption.

At Rentokil PCI, we approached this transformation through a three-pillar framework:

Suppliers as partners, not vendors: For any procurement leader, suppliers are one of the two most important levers of success. Pre-COVID, relationships often stayed transactional—based on price, margins, or immediate needs. But in the last five to six years, we’ve consciously moved beyond that. Today, every supplier we work with is treated as a strategic partner. In fact, we don’t even use the word “supplier” anymore—they are business partners who share our vision. Unless we are aligned on long-term purpose, culture, and standards, collaboration has little value. This shift has made us more resilient because we co-create solutions with our partners. It is no longer about pushing terms or negotiating harder—it’s about building trust, sharing risks, and innovating together.

Building and upskilling the team: The second lever is the team itself. Historically, supply chain was seen as a fallback function—roles people entered not always by choice but by compulsion. This perception has changed dramatically. Today, supply chain is viewed as a strategic growth driver, with global trends showing more CEOs emerging from procurement and supply chain backgrounds.

Within my team, I see it as my responsibility to elevate their skills and perspectives. Technology cycles are shortening—what was relevant yesterday becomes outdated today and tomorrow demands something entirely new. Digitization, data-driven decision-making, and automation are already shaping the future of procurement. I am investing heavily in upskilling our people so that they can not only cope with this change but also lead it. A capable, future-ready team is the biggest differentiator in ensuring supply chain resilience.

Visibility and customer-centricity: The third pillar is visibility across the value chain. Procurement is positioned right between suppliers and customers—it is the bridge that connects production to demand. If we don’t bring transparency, speed, and responsiveness into that bridge, we fail both ends.

By embedding customer-centricity into every process, procurement can move beyond being a support function. It becomes a value creator—delivering not just efficiency but measurable business outcomes. At Rentokil PCI, our aim is to transform procurement into a profit centre by aligning everything we do with customer satisfaction and long-term business value.

In essence, the last five years have repositioned procurement from being a transactional cost-control function to being a strategic, sustainable, and customer-centric enabler of business growth. It is no longer about negotiating better—it’s about building ecosystems that are resilient, people-powered, and innovation-driven.

Vikrant Srivastava, Associate Director – Supply Chain, Yum Restaurants India Pvt. Ltd.: I would divide the answer into two distinct phases—pre-COVID and post-COVID—because the expectations from procurement and supply chain functions have transformed dramatically during this period.

Pre-COVID, procurement’s focus was almost singular: cost optimization. Whether negotiating contracts, onboarding suppliers, or managing supply lines, the guiding principle was “are we getting it cheaper, and are we protecting margins?” Procurement was viewed largely as a cost-control function, working behind the scenes to ensure profitability.

Post-COVID, that narrow lens has given way to a far more strategic outlook, shaped by resilience, agility, and value creation. Several shifts have been particularly important:

Resilience through diversification: The pandemic, coupled with global disruptions such as the Suez Canal blockage and ongoing Red Sea crises, exposed how vulnerable supply chains were when overly dependent on a single source or geography. We learned that resilience matters as much as efficiency.

For us, this meant rethinking sourcing strategies—building multi-supplier ecosystems, regional supply bases, and even localized sourcing models where possible. The idea is simple: supply chains must be designed to withstand shocks and guarantee availability at all times, regardless of what is happening globally.

Suppliers as strategic partners: Another major shift is in how we engage with suppliers. Earlier, suppliers were treated transactionally—as vendors who provided inputs at the lowest possible cost. Today, they are viewed as strategic partners and collaborators in value engineering.

In the QSR space, we understand our consumer, our brand, and our operational requirements deeply. But our suppliers—because they often work with multiple industries such as pharma, automotive, and retail—bring cross-sectoral insights that we can leverage. When we co-create with them, the conversation shifts from price negotiation to innovation, efficiency, and new forms of value creation. Interestingly, when you focus on joint problem-solving, cost optimization happens naturally as a by-product.

Sustainability as a defining filter: Sustainability has become a non-negotiable pillar of procurement strategy. This goes well beyond environmental or ESG mandates. It’s also about ensuring that suppliers themselves are sustainable—financially, operationally, and ethically. If a supplier lacks resilience or cannot adapt to the future, our own business continuity is at stake. Therefore, procurement leaders must now evaluate suppliers not just on quality and price, but also on their ability to thrive over the next decade. This long-term thinking is a fundamental change in how supply ecosystems are built.

Procurement’s elevated role within the enterprise: Perhaps the most profound change is the elevation of procurement and supply chain to a boardroom-level function. Pre-COVID, procurement was often seen as a support function—important, but largely transactional. Post-COVID, the function is deeply embedded in strategic decision-making.

Today, business leaders across departments—whether general managers, CFOs, or even CEOs—regularly seek supply chain’s input before finalizing decisions. Procurement teams are called on to validate supplier choices, assess cost structures, and ensure long-term value creation. This increased visibility has transformed supply chain into a core strategic pillar of the organization.

To sum it up, the role of procurement has evolved from being transactional and cost-driven to being strategic, resilient, and future-oriented. It is about creating supply ecosystems that can withstand disruptions, nurturing supplier partnerships that drive innovation, embedding sustainability into every decision, and ensuring procurement is a genuine enabler of business growth—not just a cost gatekeeper.

Deepak Jain, Director, Argon & Co.: I think the single biggest shift has been that procurement is no longer viewed as just a cost-control function. Earlier, the conversation was always around price, savings, and purchase. Today, procurement has evolved into a strategic enabler—an integral part of how businesses shape their strategy, respond to disruptions, and create value. What that strategy looks like varies by industry. For some, it could be about business continuity and risk mitigation. For others, it could be about customer experience, flexibility, or even speed to market. Procurement is now sitting at the center of those strategic levers. Let me illustrate this with two very different examples from my own work.

The first is a global fashion retailer with operations across eight countries. Over the last five years, they’ve had to deal with multiple disruptions—COVID, the Suez Canal blockage, Red Sea challenges, and shifting trade policies. The uncertainty made cost take a backseat, and flexibility became their number one priority. To achieve this, they moved away from what we traditionally call push procurement—where the brand designs everything centrally and simply instructs suppliers on what to make, often with a six-month lead time. Instead, they shifted to a pull procurement model, where suppliers are entrusted with far greater responsibility—from raw material procurement to design creativity.

This wasn’t a simple change. It required three key shifts:

Organizational presence in sourcing markets: Rather than managing everything from the head office, they built stronger on-ground presence.

Supplier capability development: Creativity and responsiveness can’t be trained overnight, so they invested in long-term capability building with suppliers.

Governance and control: Stronger quality and compliance oversight to ensure standards were not compromised.

The result? Lead times reduced from six months to two or three months—a nearly 50% improvement in reaction time. That flexibility gave them a huge competitive advantage.

The second example is from a completely different sector: mining contracting. Here, the stakes were different. They were transporting ultra-heavy trucks—80-ton vehicles—from Indonesia to Australia. In this context, every day of delay in shipment meant losses running into millions.

So, cost was not the issue. Nor was supplier diversification. Their strategic need was business continuity and reliability. The approach was to partner deeply with suppliers who could almost integrate into their operations team. They co-created shipment plans, aligned schedules, and worked as one extended unit. The focus was on predictability and dependability above all else.

Both cases underscore the same point: procurement has fundamentally repositioned itself. It’s no longer about savings—it’s about enabling the business strategy, whether that means flexibility, resilience, continuity, or customer value. That’s the true evolution of procurement over the last five years.

TS Venketram, Co-founder, UNPAUSE Consulting: When I think about the evolution of procurement over the past five years, one word stands out: agility. But I want to clarify—agility is not about simply reacting on the spot or improvising creatively in the heat of the moment. True agility comes from discipline, preparation, and repeatable practice.

I often draw an analogy from the Navy SEALs in the U.S. When they step into a mission against an unknown target, it may look like they are responding in real time. But they go in with a meticulously detailed plan. They have trained, rehearsed, and anticipated multiple scenarios. They know: if this happens, then do this. Their ability to respond quickly is not spontaneous—it is structured, embedded, and practiced.

That mindset has increasingly defined procurement in recent years. Before the pandemic, procurement was seen primarily through the lens of cost and efficiency. But COVID-19, and the waves of disruption that followed—geopolitical instability, trade restrictions, logistics bottlenecks—taught us that resilience and agility are as important as savings. And resilience doesn’t come by accident; it comes from planning for uncertainty.

From my vantage point advising organizations, I’ve seen procurement shift into three dimensions:

Scenario-based planning: Companies now model multiple supply chain “what ifs.” What if a major port shuts down? What if trade duties change overnight? What if a key raw material is unavailable? Procurement teams that thrive are the ones that simulate these scenarios in advance and build contingency playbooks, much like military training.

Institutionalized agility: Agility is no longer an ad hoc skill of a few individuals—it is being embedded into processes, supplier relationships, and governance. Whether it is diversifying sourcing bases, balancing local and global suppliers, or creating flexible inventory strategies, procurement has become the architect of organizational readiness.

From tactical to strategic partner: In many organizations, procurement has moved beyond being a cost function to being a strategic enabler of business continuity and competitiveness. The conversation is no longer “How do we save 5%?” but “How do we protect business continuity, customer trust, and long-term value?”

The real change over the last five years is this: procurement is not just firefighting disruptions anymore. The function is becoming future-ready by practicing agility every day—through planning, training, and structured processes that allow quick and confident action when the unexpected inevitably arrives. In other words, agility is not reactive—it is engineered. And in today’s world, that’s what separates resilient organizations from vulnerable ones.

Much has been said about how AI and digitization are no longer concepts of the future but realities of the present — though not yet evenly distributed across industries and functions. As procurement and supply chains evolve, what kind of paradigm shifts do you see unfolding in the next few years, and how will they reshape both traditional and modern industries?

Digital transformation has moved procurement from process management to predictive intelligence. AI, automation, and advanced analytics are breaking silos, delivering real-time insights, and turning data into strategic foresight. This shift is creating a new operating rhythm—one that rewards speed, transparency, and agility over traditional efficiency metrics. As digital maturity deepens, procurement is increasingly positioned as the organization’s early-warning system and innovation engine, reshaping how value is defined across industries.

Amol Polke: In the pharmaceutical world, this transformation is particularly exciting. For years, we’ve worked with historical data. Now, predictive analytics allows us to anticipate market needs and respond faster. That’s a significant cultural shift.

Tactical procurement activities — issuing RFXs, collecting quotations, running comparisons — are increasingly automated. The goal is to give internal stakeholders an Amazon-like experience: instant access to product availability, pricing, and delivery timelines. In a sector where speed to market can be the difference between success and failure, this kind of visibility is invaluable.

The efficiency gains are tangible. For instance, ERP-based purchase order processes that once took four to five minutes can now be executed in under 30 seconds with new platforms. That reduction might sound small, but scaled across thousands of transactions, it fundamentally changes our agility.

AI is also adding strategic depth. It helps us scan supplier documentation, track patent expiries, and evaluate sourcing options with unprecedented speed. Instead of spending time building Excel models or preparing presentations, teams can now concentrate on strategy, supplier collaboration, and market responsiveness. In pharma, the ultimate value of digitization isn’t just efficiency. It’s about compressing time-to-market and accelerating access — outcomes that have a direct impact on human lives. That makes this transformation not just important, but imperative.

Nikhil Puri: If we step back and look at procurement’s evolution, the contrast across decades is striking. It took nearly 25 years for the function to transition from postal purchase orders to electronic data interchange. That was a long, almost painstaking cycle of change. But the next leap — powered by AI, digital platforms, and automation — will be compressed into a fraction of that time. Adoption cycles are now measured in single-digit years, even months in some areas, and procurement cannot afford to lag behind.

There are two major shifts I see defining this paradigm.

The first is decision-making. Historically, digital transformation in procurement has focused on planning and support — demand forecasts, spend analytics, supplier portals. But the “last mile” of sourcing, which has always relied heavily on human judgment, is now within reach of intelligent systems. Cognitive tools can not only analyze spend patterns but recommend suppliers, evaluate trade-offs, and in some cases, even trigger sourcing decisions. We already see this in e-marketplaces, where the moment you select a product, the system prompts you with specifications, supplier options, and comparative pricing. What was once human intuition is increasingly being codified into procurement intelligence.

The second is risk and responsibility. As adoption accelerates, procurement is no longer just a buyer — it is a gateway into the organization’s digital ecosystem. That means every supplier connection, every integration point, carries cybersecurity implications. For too long, security was viewed as an IT concern. But in the new paradigm, procurement leaders will be held accountable for ensuring that digital adoption is not just fast, but safe. This demands a new archetype of procurement professional: part strategist, part technologist, and part risk custodian.

And this is not a distant future scenario. The reality is, competitive advantage now rests on how quickly procurement teams can embed, secure, and scale digital technologies. Delay means more than inefficiency — it risks irrelevance. That is why I believe the next paradigm shift in procurement is not only about the speed of digitization, but equally about the trustworthiness of digitization.

Subodh Nagarsekar: When we talk about digitization, people often think of cutting-edge sectors like IT, e-commerce, or manufacturing. But what’s remarkable is how technology is also transforming industries that have long been considered traditional or “behind the scenes.” Pest management is one such example, and the shift is both subtle and profound.

Let me start with something familiar to all of us — cricket. A couple of years ago, if you watched the IPL, you would have noticed players with patches of white cream on their faces to keep insects away. In the last two seasons, that has virtually disappeared. Why? Because we now deploy drones to spray eco-safe insecticides across stadiums. The players can focus on the game without distraction, fans enjoy a seamless experience, and the technology quietly works in the background. It may not make headlines, but it is digitization improving quality of life in real time.

The second example is rodent control. Traditionally, this was a labor-intensive process. A technician had to physically check hundreds of bait boxes, often opening each one to see if there was activity. At one large client site, we had over 500 boxes deployed. Imagine the time and manpower that required — three or four technicians working almost full days. Today, with sensor-enabled, IoT-based systems, the moment a rodent is caught, we receive an SMS notification. Instead of manually inspecting 500 boxes, we now focus only on the 10 or 12 that actually need attention. What once took 24 hours now takes less than an hour. That’s the kind of exponential efficiency digitization brings.

And this change isn’t just operational — it extends into governance and compliance as well. Earlier, contract reviews were lengthy and highly dependent on legal teams. AI tools have now reduced review cycles from weeks to days, ensuring faster client onboarding and smoother project execution. This also enhances transparency, which is crucial in industries that are often judged on compliance and safety standards.

What excites me most is that technology is democratizing innovation. In pest management — an industry not typically associated with high-tech — we are now integrating AI, drones, IoT, and data-driven decision-making. And the implications go beyond cost savings. It’s about creating safer environments, improving service quality, and enabling employees to focus on higher-value tasks rather than repetitive manual work.

So, when I look at the paradigm shift, I see it not only as a story of automation but also of elevating industries that were once on the margins of the digital conversation. The big lesson? No sector is “too traditional” for digitization. The future belongs to those who can take these tools and reimagine how value is created — even in areas you least expect.

Vikrant Srivastava: If you ask me, digitization is no longer a buzzword — it’s already reshaping the very rhythm of supply chains. The power lies in how it takes away hours of unproductive work and frees us to focus on what truly matters. Take contract management, for example. Traditionally, reviewing lengthy documents could consume an entire day. Today, with tools like Microsoft Copilot, I can simply ask for a summary and instantly get the key points. That’s not just a time-saver — it changes the way we approach decision-making, shifting our energy from administrative review to strategic thinking.

Another area is operational visibility. Supply chain professionals are known for their attachment to Excel — it’s in our DNA. But what we’ve done is automate the routine. Instead of manually tracking where an order is or how much stock is left, I can now open an app and see real-time data on the go. That agility transforms how quickly we can respond to issues. To me, automation and AI are not about replacing the human element — they are about amplifying it. They strip away the repetitive and allow us to focus on the critical. And that, I believe, is where the real benefits lie.

Deepak Jain: We are already in the midst of a profound transformation. If you speak to most Chief Procurement Officers today, digital transformation ranks among their top priorities. Procurement has moved beyond cost control to become a driver of business strategy. Two developments are particularly striking.

First, AI-driven spend analytics. Organizations generate massive amounts of unstructured data — contracts buried in PDFs, fragmented purchase orders, even free-text entries. Without harmonization, much of this value remains invisible. AI now enables taxonomy, categorization, and clarity, which translates into smarter negotiations, sharper renewals, and stronger commercial outcomes.

Second, the emergence of control towers. These platforms integrate procurement, supply chain, and logistics into a single ecosystem view, bringing together supplier performance, lead times, risk signals, and more. This visibility doesn’t just improve efficiency — it fundamentally alters sourcing decisions by aligning them with real-time operational realities.

Looking ahead, I see procurement operations becoming increasingly system-driven. Routine tasks like manual PO entry may soon vanish, replaced by AI-led decisioning. But this doesn’t diminish the role of procurement leaders; it elevates it. Their focus will shift to ecosystem-building, long-term value creation, and aligning procurement strategies with overall business growth.

It is also important to distinguish between digitization and automation. Digitization has largely been about shifting manual processes onto digital platforms — providing visibility, traceability, and efficiency, but not necessarily changing the process itself. Automation, meanwhile, has been more targeted, handling repeatable decisions such as invoice matching or supplier onboarding with minimal human touch.

The real inflection point will be the convergence of the two. When digital platforms, analytics, and automation merge to create intelligent workflows, procurement moves from being reactive to predictive. Imagine a system that not only shows a supplier has missed three shipments, or flags a delayed order for approval, but goes further — suggesting alternative suppliers, simulating the cost-risk impact, and enabling action before disruption occurs.

Achieving this requires more than technology. It calls for rethinking roles, upskilling teams, and establishing governance around where human judgment must remain central. The future will not be about choosing between digitization and automation, but synchronizing them to create procurement that is proactive, resilient, and truly strategic.

TS Venketram: Broadly, the consensus I observe across industries is that contract management and procurement operations are already experiencing significant automation and digitization. Many routine processes — from drafting contracts to approvals, from purchase orders to supplier communications — are being handled digitally, and the impact is noticeable.

One of the immediate benefits is enhanced visibility. With better access to real-time data and numbers, procurement teams can monitor spend, supplier performance, and compliance far more accurately than ever before. This transparency doesn’t just make operations smoother; it fundamentally changes how discussions happen. Negotiations, which traditionally could take weeks of back-and-forth, are increasingly being guided by data-driven insights. The focus is shifting from debating minor points to strategic value discussions. Costs can be benchmarked instantly, risk factors quantified, and trade-offs clearly laid out. As a result, negotiation cycles are shortening, and decisions are being made faster without compromising rigor.

Looking slightly ahead, I believe the next frontier is cognitive AI-driven decision-making. Systems will increasingly not just support decisions but actively guide them, predicting supplier behavior, suggesting optimal terms, and flagging potential risks before they become issues. Imagine a platform that can recommend contract terms based on historical performance, market benchmarks, and real-time operational metrics — the procurement function will shift from reactive execution to predictive and strategic orchestration.

The combined effect of automation, digitization, and cognitive intelligence is profound. Teams can focus less on tactical administration and more on value creation, supplier ecosystem management, and strategic alignment with business objectives. In my view, this is not just efficiency; it’s the evolution of procurement into a truly business-enabling function, where the time saved and insights gained translate directly into competitive advantage.

What do you think are the critical skills and leadership traits that will evolve, and how should the next generation of leaders prepare for them?

The future of procurement leadership will be defined less by negotiation prowess and more by the ability to lead with vision, empathy, and adaptability. As the function becomes more integrated with strategy and technology, leaders will need to bridge human insight with digital fluency. The emerging skill set combines analytical depth, ethical judgment, and ecosystem thinking—enabling leaders to navigate uncertainty while anchoring decisions in purpose and long-term impact.

Amol Polke: Looking ahead, the future of procurement leadership lies in embracing polarity. By that I mean holding two seemingly opposing truths together and finding balance between them. Leaders must balance the human with the digital—using automation and analytics without losing sight of creativity, empathy, and judgment. They must balance centralized direction with empowered autonomy—setting a strong vision while trusting teams to make decisions locally. And they must balance short-term efficiency with long-term resilience, ensuring immediate cost goals do not undermine future stability.

To enable this, leaders must provide Direction, Alignment, and Commitment (DAC). This clarity allows teams to navigate disruptions with confidence. And above all, empowerment is key—you cannot be everywhere, and leadership is not about control. It’s about creating the conditions where people feel trusted to take decisions, make mistakes, and grow. True leadership in procurement is not about choosing one side of the polarity—it is about harmonizing opposites to unlock resilience and innovation.

Nikhil Puri: I see procurement and supply chain as the fulcrum on which organizational success rests. Look at the top-performing global companies—they also have the strongest supply chains. That tells us something important: the leaders of tomorrow must be change catalysts, not back-office administrators. Yes, cost will remain a constant pressure, especially in an era where global economic growth is slowing. But cost management must be balanced with affordable sustainability. We cannot just talk about ESG as an aspiration; it has to be implementable at scale and in a way that businesses can sustain. Otherwise, it risks becoming rhetoric.

A second critical shift will be in talent philosophy. For too long, industries have hired within their own silos—automotive for automotive, pharma for pharma. But the future belongs to cross-pollination of talent. Leaders must welcome diverse perspectives from outside their sectors, because fresh eyes often solve entrenched problems in new ways.

Finally, there’s digitization. Everyone talks about it, but few mention the missing piece: data harmonization. Unless data is clean, standardized, and reliable, even the most sophisticated digital tools will produce flawed results. Leaders must champion this discipline as a core competency—ensuring that digital transformation rests on solid foundations, not just on flashy technology.

Subodh Nagarsekar: I anchor my leadership philosophy around three simple words: CDC—Communicate, Delegate, Collaborate. Communication is about building a deep connect with stakeholders across the chain—internal colleagues, customers, and suppliers. If leaders truly understand ground-level challenges, half of the solution is already in sight. Delegation is about building ownership and trust. You cannot scale as a leader if you hold everything close. Empowering others to take responsibility creates a culture of accountability. And collaboration is non-negotiable. Whether within your own team, across business functions, or with suppliers and customers, success today depends on how seamlessly you can collaborate.

But there’s another emerging capability I call purchase intelligence. The world is more volatile than ever—geopolitical risks, supply disruptions, shifting regulations. Leaders cannot afford to be reactive. Risk mitigation now has to be embedded into strategy so that organizations are anticipating disruptions, not scrambling to catch up. The next generation of leaders will be judged on their ability to see around corners and prepare for challenges before they fully surface.

Vikrant Srivastava: Margins will always remain central to supply chain leadership—whether through digitization, procurement efficiency, or operational discipline. But margins alone will not define the leaders of tomorrow. Increasingly, it is sustainability and ESG that are shaping leadership priorities. Every procurement decision now needs to answer a larger question: What impact does this have on the environment and on society? In our QSR business, for instance, we have already transitioned from plastic packaging to paper. It’s a seemingly small shift, but it signals a mindset where every operational choice is tied to long-term sustainability goals.

For future leaders, the challenge will be twofold. First, they must remain students of technology. You cannot declare, ‘I’ve arrived.’ The pace of change is relentless, and leaders need to keep equipping themselves and their teams with new digital capabilities—be it AI, analytics, or automation. Second, they must lead with humility and adaptability. Teams are made up of individuals with different strengths and learning curves. Great leaders identify these differences, invest in people, and create an environment where experimentation and adaptation are encouraged. Supply chain, at its core, is about resilience, adaptability, and the ability to bring continuous value back to the organization. Tomorrow’s leaders will be those who embody these qualities while also keeping ESG front and center.

Deepak Jain: I’d add that there’s a cultural redefinition of procurement already underway. Many organizations have moved from calling the role Chief Procurement Officer to Chief Commercial Officer. That shift is not cosmetic—it signals how procurement today sits at the intersection of marketing, ESG, supply chain, and product strategy. It is no longer about negotiating contracts; it is about driving commercial outcomes for the enterprise.

This shift requires a much broader skill set. Leaders will still need negotiation skills, but they must also understand technology platforms, customer metrics, sustainability frameworks, and even emerging areas such as carbon credits. Procurement professionals must now think and act as business leaders, not just functional experts. The organizations that recognize and nurture this expanded role will be the ones that position procurement as a genuine engine of growth.

Moderator's Closing Reflections

What emerges from this discussion is a striking consensus: the skills we often describe as ‘soft’—Adaptability, Foresight, Collaboration—are in fact the hardest skills to master and will only grow in importance as business disruptions intensify.

The collective insights point to procurement no longer being a support function at the back end of the enterprise. It has moved decisively to the strategic center of business, where every decision—whether related to ESG compliance, digital adoption, or commercial performance—intersects. Leaders in this space are expected not just to manage cost and efficiency, but to balance polarities: the human with the digital, the short term with the long term, centralized direction with empowered autonomy.

This repositioning gives procurement and supply chain leaders a uniquely panoramic view of the enterprise. They are at once connected to customers, suppliers, regulators, and employees—bridging external ecosystems with internal strategy. That vantage point makes it entirely plausible that the next generation of CEOs will emerge from this domain. They will be leaders equipped not only to manage complexity but also to shape the future of enterprise strategy itself, turning procurement into a lever of resilience, innovation, and competitive advantage.