Future-ready procurement: From cost control to value creation

▤ Summary

The article argues that procurement is shifting from a cost-cutting function to a value-creation role tied to customer outcomes and supply chain design. It highlights research showing that most product cost is determined early, so procurement needs earlier involvement in new product development and tradeoff decisions. The piece also emphasizes how generative and agentic AI can remove repetitive work and free procurement teams to focus on strategic value. It closes by urging companies to segment suppliers more thoughtfully and build collaboration models with shared risk and reward.

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