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Horizon 2035: How Can Procurement Be Aligned with the New Expectations of Executive Management?

In this new context of ongoing crises, CEOs’ expectations of procurement are changing profoundly... But how can this transformation be successfully achieved?

Quote from Matthieu Magné: Expectations of the CEO

Matthieu Magné, CEO of Cubik Procurement

Purchasing must speak the language of CEOs: competitiveness, resilience, growth, and sustainable impact. It is this approach that will make the difference in 2035.

EXPERTISE

The Impact of This New Crisis Environment on Our Businesses

Globalization has long been the cornerstone of business growth, enabling companies to optimize costs and enhance their competitiveness. However, in recent years, successive crises (financial, health, and geopolitical) and structural challenges (climate transition, digital revolution) have profoundly transformed the economic landscape.

Today, value chains are fragmenting, strategic dependencies are coming to light, and risks are intensifying. Companies must balance competitiveness, resilience, sovereignty, and sustainability. In this context, short-term financial performance is no longer enough: companies need to secure their operations, anticipate change, and adapt their business models to new societal and environmental constraints.

What are the priorities of the General Directorates for Procurement?

Senior management’s expectations of the procurement function are undergoing a profound shift. While economic performance remains a priority, it is no longer the only criterion. Senior executives now expect the procurement function to contribute simultaneously to four key areas:

  • Innovation and Competitiveness: By developing strategic partnerships and securing critical capabilities.
  • Financial performance: through margin protection, ratio optimization, and management of economic fluctuations.
  • Operational resilience: ensuring business continuity, process agility, and risk management.
  • The CSR Impact: Taking concrete action to address climate change, resource management, and community well-being.

The challenge? To shift from a cost-cutting mindset to an approach focused on creating shared value that is measurable and aligned with the strategic expectations of senior management.

How can we transform procurement to address these new challenges?

To adapt to these new expectations from senior management, the procurement function must undergo a profound transformation. Here are five levers for transformation to implement:

  1. Rethinking procurement strategies: moving from simply managing expenses to actively contributing to the company’s overall performance.
  2. Strengthen the supplier ecosystem: make suppliers more efficient and aligned with the company’s objectives.
  3. Linking procurement performance to business performance: fostering strategic alignment between functions.
  4. Integrating AI: to support growth and manage the increasing complexity of business operations.
  5. Developing Skills: To Inform Decisions and Support Transformation.

The procurement function is becoming a key player in the company’s strategic priorities. But this transformation cannot be rushed; it must be built step by step.

Key Takeaways

Procurement is no longer evaluated based on its ability to save money, but on its capacity to enable growth, innovation, resilience, competitiveness, and sustainability. We are entering the era of Regenerative Procurement, where buyers drive expanded margins, manage critical dependencies, and transform supply chains to meet CEOs’ expectations for overall performance.

FAQ

How can the procurement function be transformed to adapt to these new expectations?
Successive crises (geopolitical, climate-related, and digital) and economic complexity have led senior management to expect procurement to contribute more than just cost reduction. Today, procurement must also ensure resilience, innovation, sustainability, and competitiveness, all aligned with the company’s strategic priorities.
What key areas should procurement address?
CEOs expect the procurement function to drive: 1) innovation and competitiveness (strategic partnerships), 2) financial performance (margins, inflation management), 3) operational resilience (business continuity, agility), and 4) CSR impact (climate, resources, communities).
How can the procurement function be transformed to adapt to these new expectations?
Purchasing departments have five priority levers at their disposal: realigning procurement strategies toward value creation, strengthening supplier relationships, linking procurement performance to business performance, integrating AI, and developing team skills to inform strategic decisions.
What is Regenerative Procurement, and how does it meet the expectations of CEOs?
 Regenerative Procurement places procurement at the heart of companies’ future performance. It involves managing the broader value chain, mitigating critical dependencies, and transforming supply chains to meet CEOs’ expectations regarding competitiveness, resilience, sovereignty, and sustainability.