New business models: the procurement function becomes the architect of resilience
From circular economy to collaboration: accelerated transformation
The shift to a circular procurement policy is no longer the preserve of consumer goods. Unilever has already reduced its use of virgin plastic by nearly a quarter and aims for a further third by 2026 (Unilever), creating a strong price signal for recycled resins. In heavy industry, Michelin now markets a tire made almost half from sustainable materials and targets full rollout by 2050 (Michelin); this momentum illustrates the virtuous relationship between product innovation and materials security. In both cases, the buyer positions themselves at the top of the value chain, leveraging bargaining power to establish, with each supplier, closed-loop valorization.
Our Ginesis expertise:
Our consultants align ESG scenarios with cash-flow models to build a circular strategy that puts sustainability at the center and restores the buyer to the role of conductor of an ecosystem working together—the first step toward a truly regenerative value chain.
Persistent inflationary pressure and logistics tensions
Euro area annual inflation hovered around two percent in spring 2025—high enough to erode margin if procurement management remains focused on spot prices (European Commission).
At the same time, the logistics pressure index returned to a level deemed “near normal,” but occasional spikes linked to oil rebounds show how sensitive the chain remains to geopolitical shocks (Reuters, newyorkfed.org).
Against this backdrop, each company formalizes, for each spend category, an action plan combining commodity hedging, multisourcing, and buffer stocks—levers designed to protect expenditure and secure cash-flow forecasts; the first step is granular flow mapping based on internal and market data.
CSRD, CSDDD: compliance becomes a KPI
The CSRD turns supplier risk into a critical financial data point. CFOs must now demonstrate alignment of spending with the EU taxonomy and prove, for each procurement process, ESG due diligence.
Schneider Electric is deploying a global emissions-reduction program with its partners: the buyer becomes an operator of a climate service, confirming the new strategic position of the procurement function within the company at every stage of the Source-to-Contract cycle (Schneider Electric).
Procurement KPIs: shifting from unit price to strategic capital
Three differentiating indicators
| Strategic KPI | Objective | Impact on procurement performance |
| TCO by category | Include CAPEX, OPEX, CO₂ and risk | Aligns make-or-buy decisions, total spend and delivers measurable savings |
| Supplier resilience index | Weight lead time, diversification, ESG rating | Reduces supplier risk, secures cash flow and strengthens partner relations |
| Circularity score | Share of secondary material | Supports CSRD objectives and responsible procurement |
According to the 2024 Deloitte CPO Survey, 89% of chief procurement officers cite inflation among their top three risks, and only 25% have reliable predictive analytics for supply disruptions (Deloitte United States).
From dashboard to capital allocation
When KPIs are integrated into the finance data warehouse, the CFO can arbitrate in real time between dynamic discounting, commodity hedging, or deferring CAPEX.
In banking-insurance, BNP Paribas Cardif uses predictive models capable of automating nearly all low-value requests, freeing the equivalent of 140k hours for margin analysis; the same engine, applied to IT procurement, anticipates supplier overruns and feeds the margin review. (BNP Paribas Cardif)
Thus the procurement policy becomes an instrument for steering working capital, ROCE, and ESG resilience, consolidated in a single finance-procurement cockpit, while providing the company with consolidated ESG visibility.
E-procurement: purchasing enhanced by data and AI
Automation & RPA: the new productivity benchmark
“Digital World Class®” organizations operate at 21% lower cost and process 76% more orders via EDI, while being 1.7× more likely to be viewed as strategic partners (The Hackett Group®). These gains reposition procurement management as a creator of value, not a cost center. As a result, the procurement strategy can focus on optimizing indirect spend, traditionally the least controlled.
Sector comparison: In aerospace, e-procurement drastically reduces replenishment cycles; in retail, it enables one-click management of thousands of catalog items. Two sectors, one solution, one objective: safeguard performance while improving the relationship with each supplier.
Predictive AI & Gen AI: steering before disruption
Gen AI promises a 54% productivity gain and a 47% cost reduction for procurement functions. (Yahoo Finance)
Rather than counting red warning lights, AI lets you smell smoke before the fire. Algorithms cross-reference price history, commodity indicators, logistics weather, and ESG data; as soon as a weak signal threatens margin, the buyer receives a contextualized alert. The company thus has a head start to re-prioritize expenditure and adjust transfer prices.
ERP–Finance integration: the Airbus–Taulia example
Airbus has deployed the Taulia portal for e-invoicing and early-payment financing, connecting the Source-to-Pay chain to treasury: 18,000 suppliers benefit from dynamic-payment options, and the company has reduced its “trade payables” line by 9%.
This type of e-procurement eliminates maverick spend, secures VAT compliance, and links procurement management to cash forecasting.
Procurement as a driver of innovation and value creation
Procurement–Finance–CSR synergies: a margin multiplier
Forrester’s TEI study for Coupa quantifies a +1.4 pp increase in gross margin and a 276% ROI for a unified Source-to-Pay program.
Among CAC 40 groups, 95% now mention responsible procurement in their CSR reports and 51% have set quantitative targets. (Orse)
When procurement and finance co-lead the margin review, the value created on the P&L becomes instantly visible and the action plan can shift from cost-cutting to optimizing invested capital.
Procurement ecosystems and inter-company collaboration
Sector consortia (e.g., BoostAeroSpace, Clean Energy Buyers Alliance) show how to pool volumes, CO₂ data, and innovations to lower total cost and market complexity. The buyer becomes the “conductor” of upstream partnerships—an evolution that requires a high-performing procurement strategy clearly transcribed into the financial roadmap.
Conclusion: toward a procurement strategy that creates sustainable performance
In a context of contained yet stubborn inflation, still-vulnerable supply chains, and demanding non-financial regulation, the procurement function is reinventing itself as a center of value creation. Supported by mature e-procurement, a procurement policy focused on TCO, resilience, and circularity elevates procurement performance to a fully-fledged financial KPI—guaranteeing responsible, sustainable competitiveness for the enterprise.