As AI, geopolitical risk and leaner teams reshape the profession, procurement leaders say the future belongs to people who can turn insight into action
What if procurement’s greatest value is no longer measured by how much money it saves, but by how much value it creates?
That question was at the heart of Day One of the 20th Annual Smart Procurement World Indaba, where procurement and supply chain leaders challenged traditional thinking about the role of procurement in modern business.
Held under the theme “The People. The Platform. The Purpose.”, the Indaba brought together industry leaders to unpack how procurement must evolve as organisations navigate artificial intelligence, geopolitical uncertainty, climate-related risks, supplier resilience and increasingly lean teams.
And one message came through clearly: procurement cannot afford to remain a gatekeeper. It needs to become a trusted business advisor.
“Procurement has moved far beyond simply delivering cost savings. Today, the profession is being called upon to create value, build resilient supply chains, enable innovation and contribute to sustainable growth. At the heart of that transformation are people. People who understand the business, build meaningful relationships and have the courage to challenge the way things have always been done. The future of procurement belongs to those who can connect people, platforms and purpose to create real impact,” says Debbie Tagg, CEO, Smart Procurement.
“Stop leading with policy. Start with the business problem.”
One of the strongest themes from the opening-day discussions was the need for procurement professionals to understand what keeps their stakeholders awake at night.
Mapitsi Talana, Senior SCM Specialist of Vodacom Group, argued that trust is the starting point for procurement professionals who want to move from gatekeepers to trusted advisors. Rather than leading conversations with policy and process, procurement needs to understand the commercial challenge and help the business achieve the outcome it needs. That means getting closer to stakeholders, understanding the wider business ecosystem and bringing knowledge and insight that helps solve problems, not creating additional hurdles.
For years, procurement has often been associated primarily with cost control. But the conversation at the Indaba pointed towards a broader definition of value: revenue, sustainability, innovation, risk management, supplier diversity and shared prosperity.
The AI question: What happens when procurement can automate the work?
Artificial intelligence is already forcing procurement to reconsider where human expertise creates the greatest value. Spend analysis, contract comparisons and risk identification are among the activities that can increasingly be automated.
But speakers cautioned that this does not make procurement professionals less important. It changes what they need to be good at.
The competitive advantage will increasingly lie in the ability to interpret information, challenge assumptions and turn AI-generated insights into commercial decisions. In other words, procurement’s future may be less about producing the analysis and more about knowing what the analysis means.
Despite the focus on technology, one of the most consistent messages was surprisingly human: people remain the biggest differentiator.
Panel discussions highlighted the need for procurement teams to develop stronger business-partnering capabilities, build multidisciplinary skills and remain agile as organisations ask smaller teams to deliver more.
Ronald Flockhart, Group Head Sourcing & Category Management of FNB, who brings more than 20 years of procurement experience, reflected on how the profession has evolved from a predominantly cost-saving function towards a wider value proposition.
His perspective: the conversation is increasingly about shared prosperity and sustainable relationships, rather than simply winning the lowest price.
Melita Matlala, the Head: Group Procurement at African Bank, similarly emphasised the importance of building adaptable teams and ensuring procurement professionals have access to the information and skills needed to make informed decisions.
The discussions also challenged conventional perceptions of Enterprise and Supplier Development.
Kgalaletso Tlhoaele, the Executive: Enterprise Development of the Absa Group, highlighted the role of procurement in creating stronger connections between suppliers and organisations, growing new suppliers and diversifying supplier bases, while also addressing supply chain complacency and risk.
A particularly thought-provoking perspective was that ESD should not be viewed narrowly as a South African, SMME or black-business issue. Instead, organisations should look for fresh capabilities, new ideas and agility and create opportunities for suppliers to contribute to business challenges in meaningful ways.
Procurement’s risk map is getting bigger
The procurement professional of tomorrow also needs to look well beyond the traditional supply chain. Climate change, disaster response and recovery, global economics and geopolitics are increasingly influencing procurement decisions.
From developments in global politics to disruption along strategic trade routes, what happens elsewhere can have consequences locally.
The message to procurement professionals was therefore simple: understand the world around your organisation, not just the contracts within it.
So, where does procurement go from here? The answer emerging from Day One is not simply “more technology”. It is more strategic thinking, stronger relationships, better commercial understanding and a willingness to adapt.
Procurement professionals were encouraged to seek exposure beyond their immediate roles, learn from other parts of the organisation and challenge suppliers to develop solutions to real business needs. And perhaps fittingly, when the panel was asked to describe procurement in one word, the answers included:
Value. Collaboration. Adaptable. Satisfying and, unexpectedly FUN.
Because as the profession changes, procurement is discovering that creating value does not have to mean losing the human connection that makes the work meaningful.
Day One of the Smart Procurement World Indaba has opened a bigger conversation about the future of procurement, one that places people, platforms and purpose at the centre of how organisations create sustainable value.