While discussions on sustainable procurement often center around environmental concerns, the economic dimension remains critically underexplored – despite its increasing relevance in a climate of supply chain disruption, inflationary pressure, and heightened cost control. For procurement professionals, economic sustainability is no longer a long-term ideal; it is an urgent operational necessity.
Economic sustainability in procurement refers to the strategic structuring of purchasing activities to ensure long-term cost-efficiency, resilience, and value creation. A growing body of research and field experience, such as a survey from Deloitte [1], shows that the key enabler of this transformation is the digitization and formalization of procurement processes. Moving from fragmented, manual operations to integrated digital systems enables organizations to reduce waste, gain visibility over spend, and shift from tactical purchasing to strategic decision-making.
The Hidden Costs of Chaotic Procurement
Many organizations still operate with unstructured processes – particularly in the area of indirect procurement. Employees may source goods and services independently, bypassing approved suppliers or budgets. Known as Maverick Buying, this behavior erodes cost control, undermines compliance, and introduces inefficiencies at scale.
One illustrative example: a mid-sized enterprise with 4,000 employees and over 1,000 active requesters lacking standardized catalogues or frame contracts. In such a setting, similar items are often sourced repeatedly from different vendors at varying prices, leading to missed discounts, extended lead times, and limited oversight.
The Hackett Group’s 2025 Procurement Agenda and Key Issues Study [2] underscores that many American firms still operate with fragmented, spreadsheet-driven systems – hindering economic sustainability and increasing exposure to procurement risk. In contrast, high-performing procurement organizations are adopting digital platforms that structure purchasing activities, enforce compliance, and enable proactive spend management. This shift allows them to outperform their peers not only in cost control but also in strategic business influence.
These qualitative insights are echoed by the Hackett Group’s study [2], which found that 64% of procurement leaders expect digital tools – especially automation and generative AI – to drive the greatest transformational impact in the next five years. Moreover, 71% of organizations are moving toward centralized procurement models to improve control, agility, and long-term value creation.
Digitization as a Catalyst for Long-Term Value
Structured, digital procurement platforms address the root causes of inefficiency by standardizing purchasing channels, enforcing compliance rules, and centralizing supplier data. They provide a framework within which procurement can operate not only efficiently, but strategically.
A key building block is spend transparency. Without visibility into what is being bought, by whom, and from which suppliers, organizations cannot make informed decisions or negotiate effectively. Digital platforms equipped with analytics tools enable procurement teams to aggregate demand, identify consolidation opportunities, and engage in data-driven negotiations that result in measurable cost savings.
The Hackett Group study [2] reinforces this, noting that organizations accelerating digital adoption are already realizing gains in return on investment, efficiency, and responsiveness. Real-time analytics and automation enable these firms to manage cost pressures more proactively, while laying the foundation for long-term value creation.
Digitization also facilitates the implementation of Guided Buying, a digital navigation system – used in platforms such as BeNeering’s Digital Procurement Platform [3] – that directs employees through compliant, cost-effective procurement paths. This approach reduces Maverick spending, improves process adherence, and maintains ease of use for non-procurement staff.
A further advantage is Real-Time Procurement, where procurement solutions are fully integrated into ERP systems without middleware or data latency. This ensures that decisions – such as supplier selection or budget validation – are made based on up-to-date and accurate data, eliminating costly errors and delays.
Supplier Relationships as a Strategic Lever
Another often-overlooked contributor to economic sustainability is supplier stability. While frequent supplier changes might offer short-term price advantages, they hinder trust, disrupt continuity, and discourage innovation. Suppliers with longer-term agreements are better positioned to invest in quality, co-develop solutions, and deliver consistent service – contributing directly to procurement’s strategic goals.
This is especially important in areas like MRO (Maintenance, Repair, and Operations) procurement, where the cost of failure can halt operations. Digital tools help structure these complex categories by consolidating supplier frameworks, enabling self-service ordering, and reducing the risk of informal or urgent purchases outside defined channels.
The result is more than efficiency – it is operational security.
Procurement as a Resilience Engine
Economic sustainability is not simply about cutting costs. It’s about building procurement functions that can scale, adapt, and contribute to organizational stability over time. Structured and digitized procurement processes offer multiple strategic benefits:
- Reduced transaction and administrative costs through automation
- Increased compliance with internal controls and external regulations
- Improved forecasting, planning, and risk mitigation through analytics
- The ability to scale without proportionate increases in headcount
These factors are becoming essential differentiators. As the Hackett Group notes, organizations investing in procurement digitization are best positioned to navigate future disruptions – whether from market volatility, regulation, or global shocks.
Conclusion: Economic Sustainability Starts with Structure
As the concept of sustainability evolves beyond environmental metrics, procurement must play a central role in reinforcing financial resilience and long-term value creation. The tools to do so already exist – and the business case for their adoption is increasingly compelling.
Procurement leaders face a clear mandate: It’s not just about what you buy – it’s about how you buy it. In an age where resilience and efficiency are inseparable, structured and digitized procurement is no longer optional. It is the new baseline for sustainable business performance.
[2] https://info.ivalua.com/hubfs/Hackett-Group-Procurement-Agenda-and-Key-Issues-Study-Results.pdf
