Written by GRG Executive Search Partner and Executive Procurement Specialist Rhys Bryan and Global Procurement and Estates Director Peter Dennis
The procurement function is a cornerstone of any successful business, playing a vital role in securing the goods and services necessary for operations, driving efficiency, and fostering growth. At its core, procurement ensures organisations acquire the right resources, at the right time, and at the best value, supporting both operational and strategic goals.
Beyond cost savings, procurement enables robust supplier relationships, allowing businesses to mitigate risks, adapt to market fluctuations, and ensure supply chain continuity. Procurement also supports innovation by sourcing cutting-edge technologies and materials that enhance product offerings and operational processes.
In today’s complex, sustainability-focused, and regulatory landscape, procurement ensures compliance with legal standards and supports environmental, social, and governance (ESG) goals by promoting ethical sourcing and sustainable practices.
As businesses face an ever-changing market and fierce competition, the procurement function proves itself to be an essential asset, ensuring operational efficiency, fostering innovation, and sustaining an organisation’s competitive edge in a rapidly changing world.
GRG Executive Search Partner and Executive Procurement Specialist Rhys Bryan has developed a unique understanding of the industry’s nuances and an in-depth understanding of its importance within business. Through his work recruiting key hires in the sector, Rhys has gained valuable insight into just how vital a well-established procurement function is to the success of a business.
Here, Rhys discusses the benefits of a robust procurement function with Global Procurement and Estates Director Peter Dennis. They each share how the procurement function can significantly impact business success and why companies should prioritise the recruitment of procurement professionals.
What value can a procurement function bring to a business?
With decades of procurement experience and having set up a procurement department from the ground up at Lloyd’s Register, senior procurement professional Peter Dennis believes that a well-established procurement function is essential to business success.
“In today’s fast-paced marketplace, where cost control, innovation, and responsiveness are paramount, procurement has become indispensable.
“My experience building a procurement function from the ground up has shown me that procurement is fundamental to long-term value creation, business resilience, and sustainable growth. It’s a function that goes well beyond cost-cutting; it’s about aligning with business strategy, supporting innovation, and safeguarding the brand’s reputation. Investing in a skilled procurement team is not just about staying competitive—it’s about setting the stage for lasting success.”
Strategic value beyond cost savings
“Procurement today isn’t just about securing goods or services at a competitive price,” says Peter. “It’s about strategically aligning sourcing decisions with company goals to deliver real value. In my role, I’ve seen how carefully selected suppliers and strong relationship management directly contribute to business growth and resilience.
“A dedicated procurement function anticipates and manages risks across the supply chain. When setting up the department at Lloyd’s Register, risk management was a priority. We put structures in place to handle supplier disruptions and navigate global issues, ensuring business continuity and resilience.”
Peter believes that, with a strategic approach, procurement can also bring valuable innovations by fostering strong supplier partnerships: “These collaborations unlock new technologies and sustainable practices that keep businesses competitive.”
Rhys agrees that the strategic value beyond cost savings lies in a number of value-added services.
“From managing third-party suppliers to sourcing new vendors, getting the most out of these relationships—not only from a financial standpoint but also from a partnership perspective—supports the optimisation of processes and the ability to achieve optimum results.
“This can be further emphasised within procurement-centric transformation and across the wider business.”
Cost management and efficiency
“Experienced procurement professionals are adept at identifying cost-effective solutions,” says Peter.
“Through strategic sourcing and negotiation, we secure favourable terms that drive significant savings.
“Process optimisation also plays a key role when it comes to cost management and efficiency. During my work at Lloyd’s Register, optimising procurement processes was a core focus. We examined every stage of the procurement cycle, uncovering inefficiencies and implementing streamlined processes, which resulted in faster, more reliable operations and a stronger bottom line.”
Enhancing compliance and reducing risk
Peter believes that one of the critical roles of procurement is ensuring that suppliers and practices meet regulatory and ethical standards.
“In setting up the department at Lloyd’s Register, compliance was paramount, especially as we worked with suppliers in highly regulated industries.
“A procurement function is key to mitigating financial and reputational risks. Through robust supplier vetting and ongoing assessments, procurement minimises risks related to fraud, non-compliance, or reputational harm, which protects the business in the long run.”
Sustainability and Corporate Social Responsibility (CSR)
When it comes to sustainability in procurement, Rhys states that procurement specialists with a specific focus on ESG are becoming increasingly in demand, predicting that this trend will continue to grow throughout 2025.
“Corporate responsibility across organisational supply chains and the accountability of these outputs adds value across the business, so it is an essential focus for those set on growth.”
Peter agrees that procurement is central to helping businesses meet their sustainability goals.
“By sourcing eco-friendly materials and reducing carbon footprints, procurement drives meaningful environmental impact.
“A strong procurement function also fosters social responsibility by working with suppliers that adhere to fair labour practices. This alignment with corporate values appeals to conscientious consumers and boosts brand reputation.”
Enabling data-driven decision-making
“Modern procurement relies on data analytics to uncover insights into spending patterns, supplier performance, and process efficiencies, empowering us to make smarter, more informed decisions,” says Peter.
Peter believes that, by leveraging analytics, procurement functions can accurately forecast demand, optimise inventory, and reduce waste—all of which contribute to the bottom line.
“The role of AI in aligning to correlating data and optimising the most out of this information is fundamental to our growth and evolution. Data can be the key to fine-tuning small areas that, in turn, result in great outcomes.”
Conclusion
It is evident that the procurement function is key to company success, with procurement professionals providing vital support to ensure a strong, robust business model.
Peter predicts that the role of procurement is set to evolve far beyond its traditional focus on cost control and supplier management.
“In the coming years, I believe procurement will be at the heart of strategic business transformation, acting as a bridge between innovation, sustainability, cost control, and operational excellence.”
Rhys echoes Peter’s predictions and stresses the importance of every company having a dedicated procurement function.
“From a risk mitigation perspective and pure cost-saving initiatives to freeing up capital to further invest in multiple revenue streams, every business should have a procurement professional or team in place to drive overall business performance.”