From purchasing office supplies to software subscription and ad hoc expenses – they handle a lot of spend. 

They’re the ones making sure the right products and services are sourced at the right price, from the right suppliers – all while supporting compliance, cost-efficiency, and strategy.

 How do they stay on top of it all? And how do they help businesses meet their goals?  

Procurement management

Procurement is a key strategic function that shapes how companies source, pay, and grow.

At the center of it all is the procurement manager - connecting the dots between sourcing, suppliers, strategy, and payments. 

They’re responsible for overseeing purchasing decisions, ensuring supplier performance and compliance, and aligning spend with the broader business goals.

But procurement isn’t just about buying, it’s about creating value through smart, structured, and often digital processes.

Let’s take a closer look at what that involves.

Roles and responsibilities 

In their day-to-day role, procurement managers are no strangers to complexity - but the ability to turn it all into clarity is key.

They're responsible for:

• Sourcing strategies 

Developing sourcing strategies that support cost-efficiency and operational resilience, including evaluating suppliers and negotiating contracts that deliver long-term value.

• Managing relationships

 Fostering strong supplier relationships to support performance, compliance, and smoother payment processes.

• Cost analysis and cost-saving initiatives

Identifying areas to reduce spend without compromising quality is a core part of the job.

They analyze purchasing patterns, track key metrics, and implement initiatives that help optimize working capital.

• Compliance

Ensuring all purchasing and payment activities meet internal policies and evolving external requirements, from ESG to financial regulations.

Challenges 

 The range of these responsibilities make the role of procurement demanding and prone to obstacles.

Key challenges include:

• Supply chain disruptions

Fluctuations such as inflation, can affect pricing, demand, and supply chain dynamics. Whether due to global events, geopolitical shifts or logistics delays, procurement teams need to be agile in responding to disruptions.

• Cost pressures

Rising prices across categories put pressure on budgets – requiring smarter negotiation and spend control.

• Supplier risk management

Vetting and monitoring suppliers for financial, reputational, or operational risks is more important than ever, as supply chains grow more global and complex.

• Regulatory compliance

Ensuring all purchasing activities comply with relevant laws and regulations, from anti-bribery policies to sustainability mandates.

The challenge of tech and AI

As these advancements continue to reshape the way in which business operates, procurement teams are faced with a turning point.

Investing in these technologies offers clear potential for better efficiency, insight, and management. Integrating with procurement platforms will not only help reduce manual work, but also allow for better forecasting, compliance, and supplier satisfaction.

However, success still depends on human oversight, strategic thinking, and adoption across the organization.

Procurement leaders are key drivers of innovation, but implementing new tools brings its own hurdles - from integration and data quality to navigating fast-moving internal policies.

At the same time, expectations are rising. There’s growing pressure to fully leverage these capabilities and prove their value^[1].

The Impact in corporate payments 

Long-tail expenses make up as much as 80% of transactions, yet account for only around 20% of the total spend in a company^[2]. That’s why their role is increasingly tied to smarter corporate payments solutions that offer more control, efficiency, and visibility.

Traditionally seen as cost cutters, procurement teams are now being seen as strategic relationship builders^[3]. They’re strategic partners driving cost efficiency, business continuity, and smarter payment practices. 

As companies continue to evolve, so too will the role of procurement – with greater emphasis on data, digitalization, and delivering value beyond just price.

[1] Deloitte Global CPO Survey: How AI is Driving Transformation | Procurement Magazine

[2] A New Take on Tail Spend Management | Billhop

[3] How to Build a Self-Driving Global Trade Netword | PYMNTS