Rethinking Procurement: Why System Change Starts in the Supply Chain

We are operating within an economic model that is no longer fit for the challenges of our time

Neoliberal capitalism, anchored in the pursuit of endless growth, short-term profits, deregulation, and aggressive cost-cutting, has profoundly shaped how most organisations make decisions. It has delivered shareholder value, driven global expansion, and embedded efficiency as the highest virtue. But it has also left us with widening inequality, volatile supply chains, degraded ecosystems, and a dangerous overdependence on fragile global systems.

The cracks are no longer subtle. We see them in supply disruptions, labour unrest, climate-related shocks, and the growing disconnect between corporate success and social wellbeing.

As someone working at the intersection of sustainability and procurement, I believe this isn’t an abstract or ideological conversation. It’s a strategic imperative.

If we are serious about addressing what’s broken in our economic system, we need to start with the fundamentals: how we source, produce, and consume.

Because every purchasing decision reflects values. Every supplier relationship shapes impact. And every supply chain is either reinforcing the status quo, or helping to build something better.

Transformative Procurement Change

The Problem Isn’t Just “Out There.” It’s in Our Contracts and Supplier Lists

Let’s get specific. The economic system we operate in prioritizes:

• GDP growth over planetary boundaries

• Cost over value

• Shareholder returns over community wellbeing

• Efficiency over resilience

These aren’t abstract trade-offs. They show up every day in procurement decisions: from sourcing raw materials to structuring supplier contracts to defining KPIs.

And the result?

• Supply chains that externalise environmental damage: The cost of pollution, resource depletion, and ecosystem destruction is passed on to the planet and future generations, not reflected in the price of goods.

• Suppliers under pressure to cut corners: In a race to meet cost-cutting demands, suppliers often face untenable pressures, leading to compromised quality, ethical shortcuts, or substandard working conditions.

• Labour that’s precarious, hidden, or exploited: Unseen or undervalued workers, sometimes in distant parts of the globe, bear the brunt of low wages, unsafe conditions, and precarious labour practices, while companies benefit from the low costs.

• Resources extracted, used, and discarded at speed: The relentless demand for cheap goods encourages overexploitation of natural resources, accelerating waste and depletion without regard for long-term sustainability.

We’ve designed systems that treat social and ecological harm as someone else’s problem. But in reality, they’re business risks waiting to surface and moral responsibilities we can’t ignore. These externalities, like the collapse of ecosystems, social unrest, and volatile markets, are not “out there” in distant corners of the world; they are embedded in the very contracts we sign, the suppliers we engage, and the expectations we set.

When we prioritize cost over value, efficiency over resilience, and shareholder returns over community wellbeing, we are not just enabling harm; we are embedding it in our business model. It’s no longer acceptable to treat sustainability as an afterthought or a "nice-to-have." The damage we ignore today will inevitably become a crisis tomorrow, whether through climate impacts, reputational damage, or regulatory fallout. The time to shift our approach is now.

We must start by rethinking procurement. Every contract, every supplier list, every performance metric should reflect a commitment to social and environmental responsibility. It’s not just about reducing risk, it’s about creating opportunities for a more sustainable, equitable future. The contracts we negotiate today shape the world we will live in tomorrow. If we’re serious about systemic change, we need to begin where it matters most: at the heart of our purchasing decisions.

Why Procurement Leaders Are Uniquely Positioned to Drive Change

Procurement is often seen as a back-office function focused solely on cost control. That’s outdated thinking.

Today, procurement teams manage enormous influence across the organization and beyond:

• We control spend: Procurement is responsible for how an organization allocates its financial resources, often representing a significant portion of the budget. This gives us direct leverage to drive sustainable and ethical purchasing decisions.

• We set sourcing standards:Through the standards we establish for suppliers, we can enforce higher environmental and social performance benchmarks, demanding that suppliers adhere to sustainability, labour rights, and ethical practices.

• We shape supply chain behavior: The decisions we make regarding who we partner with and how we collaborate shape the broader supply chain, from resource extraction to product delivery. This is a powerful tool for encouraging better practices and driving change across entire industries.

• We decide what gets made, by whom, and under what conditions: Procurement teams decide not just what goods and services are needed, but also how those goods are sourced, produced, and delivered. This gives us the ability to influence product design, labour conditions, and environmental impacts—ensuring that these decisions align with the values of the organization and its stakeholders.

If we want a more just, resilient, and sustainable economy, this is where we start. Procurement leaders have the power to reimagine supply chains, move markets toward sustainability, and foster responsible practices throughout the value chain. The time is now for procurement to step into its true role as a force for positive change, shaping the future by how we source, buy, and engage with the world.

Why This Work Matters, Now More Than Ever

We’re facing compounding global crises that are threatening the stability and sustainability of our world:

• Climate disruption: Extreme weather events, rising temperatures, and environmental degradation are no longer distant concerns: they are present, urgent, and escalating.

• Fragile supply chains: The disruptions we’ve seen in recent years, whether due to pandemics, geopolitical tensions, or natural disasters, reveal just how vulnerable our global systems are.

• Wealth inequality: The growing divide between the wealthy and the rest of the world continues to widen, creating social unrest and undermining long-term economic stability.

• Eroding trust in institutions: People are losing faith in governments, corporations, and traditional systems of governance, demanding transparency, accountability, and change.

Tackling these challenges requires more than policy tweaks or ESG reports. It demands a fundamental rethinking of the economic logic that got us here, one that prioritizes profits above people and the planet. To truly address these crises, we must transform the systems that underpin our economies, and procurement is at the heart of that transformation.

Procurement leaders, especially those with sustainability at the core, are in a powerful position to lead that shift. We are uniquely positioned to drive the change needed by reshaping how organizations source, produce, and consume. By prioritizing resilience, equity, and sustainability, procurement can become a tool for repairing the damage done by decades of unsustainable growth.

The old model of extractive, cost-driven procurement is no longer just outdated—it’s dangerous. It perpetuates environmental degradation, economic inequality, and social injustice.

The future belongs to organizations that can build supply chains that are ethical, adaptive, inclusive, and regenerative. The ones that foster trust, create long-term value, and contribute positively to the world around them. This isn’t just a strategic opportunity, it’s a moral imperative. The work we do in procurement today will shape the world of tomorrow.

A Call to Action

To procurement professionals who believe business can (and must) be a force for good: this is your moment.

Every contract is a lever. Every RFP is a signal. Every supplier conversation is an opportunity to model the economy we actually want to live in.

Now is the time to shift the narrative in procurement. Let’s stop asking, “What will it cost?” and start asking, “What will it change?”

The decisions we make today will shape the future of supply chains, industries, and societies. By embedding purpose into every procurement decision, we are creating value that goes beyond financial metrics. We are building a future that prioritizes sustainability, equity, and resilience.

Let’s connect. I’m always looking to collaborate with leaders and organizations that are committed to aligning procurement with purpose. Change starts with the individual actions we take, but when multiplied across many decisions, relationships, and systems, it can lead to meaningful, systemic transformation.

💬 What’s one change you've made in your sourcing strategy that reflects your values? I’d love to hear your story.

Fanny Ganti Founder of Transformative Procurement Change - July 2025