Emma Mottram, director of operations at EN:Procure, the specialist procurement arm of Efficiency North, explains why a people-led approach is more important than ever
In a challenging, changing world, the role of a chief procurement officer (CPO) is becoming increasingly pressurised. From political instability and AI use to skills shortages and cybersecurity threats, CPOs are juggling many complexities.
My role in leading the procurement process at Efficiency North couldn’t be more different from the days when chief procurement officers (CPOs) were viewed as back-office staff, focused on cost control and operational efficiency.
These days, modern procurement in the UK demands foresight, detailed planning and the agility to adapt to global instability, problematic supply chains, tighter budgets and ever-evolving regulatory frameworks.
It’s a major plate-spinning role – and quite often I wish I had a crystal ball to help me predict the future, as the role requires spotting new opportunities and challenges and understanding the long-term dynamics of global supply chains.
Strategic thinking, detailed problem-solving, and a strong awareness of risk are part and parcel of the modern procurement role, rather than simply managing a process from start to finish as in the past.
I strongly believe that successful procurement is a people-centric world, where building relationships, negotiating for the best results and exercising commercial judgement are as crucial as ever. We face a myriad of challenges, but there are many facets of the job that make it a hugely satisfying career.
The skills crisis
This is one of the biggest daily challenges we face. The skills crisis in construction – and by extension, procurement – has left the sector struggling to attract the right talent.
The Procurement Act has made the role more complicated, as there is so much more we need to do – and that puts additional pressure on finding the right people with the right skills to navigate the process.
One of the issues is a general lack of awareness of what a CPO does; we don’t necessarily do a good job of selling the role and what it involves. It can be tough – you’re running against deadlines, dealing with health and safety requirements, facing the risk of contractors going into liquidation, for example, and we’re always at the front line if something goes wrong.
At Efficiency North, we’ve tackled the skills issue with a ‘grow your own’ approach – training our own people and ensuring they are equipped to meet such demands as modern frameworks, ESG obligations and emerging technologies. We want to invest in and retain people – it’s a five to ten-year investment to upskill them.
The rise of AI and digitalisation
The great advances we have seen in technology and digitalisation have created so many transformational opportunities, yet AI is not a magic wand. Successful CPOs understand their limits and the need to safeguard data integrity while integrating new tools without compromising compliance or risk management. Being cyber-secure is also incredibly important and a fundamental part of the CPO’s role.
There are many moral and technical questions we need to unpick in the use of AI, which also affects skill issues and its effect on the roles of younger procurement officers coming through. But at the same time, there is huge pressure in the public sector to keep costs down and investing in IT and digitalisation could bring more efficiencies.
Global supply chains
Persistent supply chain disruptions, due to instabilities such as the war in Ukraine, the conflicts around the Red Sea, and fresh conflicts in the Middle East, have exposed many vulnerabilities in the procurement process. We experienced those issues during the national chip shortage for boilers, which meant many modern digital-controlled boilers were unavailable. That had a big impact on costs and lead-in times, which have thankfully stabilised.
The ability to buy goods from overseas and deal with the tariffs involved has become more complex, not helped by uncertainty and instability. It’s important as a framework to work with all our suppliers and to map out each other’s supply chains as we balance cost efficiency and resilience with the continued supply of the goods we need.
ESG expectations
Supply chains are also affected by the drive in Environmental, Social and Governance (ESG) expectations, including ethical sourcing and carbon reporting. For example, our retrofitting work involves sourcing materials from other countries, which can raise issues around modern slavery practices.
We need to be aware of and mitigate these as much as possible, but they are complex to map and understand where the risks and priorities lie. It’s a key consideration, but also difficult in these turbulent times and when people have no budget certainty.
ESG and the legislation around it can be an added cost pressure – we are factoring more ESG requirements into our contracts at very small margins as we consider the constraints on the public purse.
Sustainability
There is a lot of pressure on social housing landlords to keep on top of changes to funding and consultations on sustainability and making homes more efficient. We advise our members to review the building frameworks that will support them with the volume of information and decision-making required.
The government is now increasing its focus on sustainability and energy efficiency in the private rented sector, with programmes like the Warm Homes Plan. It has also discussed retrofitting in the private sector, using an area-based approach with the private and public sectors working together.
That could bring new opportunities, but aligning different client goals in an area and handling contracts will require more thought. And not forgetting the skills shortage – we’re all competing for the same resource.
Future hopes
Procurement is no longer just a support function – I do think we’re seeing procurement, finance and legal increasingly joining together in a kind of ‘holy trinity’.
The procurement sector has a strong voice and has become much more dynamic and less risk-averse. I would encourage more people to consider it as a career – we need people who are hungry for information, natural problem-solvers, and who can get to grips with the operational challenges.
The buzz of dealing with people, understanding their businesses and enjoying negotiating could bring real progression and a lot of job satisfaction. Whatever technological advancements we’ll see in the future, it’s still a people game.
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