One of the most powerful and memorable lines from the blockbuster superhero film Spider-Man is:
“With great power comes great responsibility.”

The procurement function often controls as much as 75–80 percent of an organization’s spending and revenue. That is true power—and it is power that comes with immense responsibility.

Traditional or less mature organizations still regard procurement as a back-office function responsible only for transactional purchase orders and standard contracts. Leading organizations, however, recognize and embrace procurement’s strategic value.

So, what is the power that procurement holds, and what responsibilities come with that power?

Power

In many industries, procurement spending accounts for up to 90 percent of an organization’s revenue. This represents a massive amount of purchasing activity. The Chartered Institute of Procurement & Supply (CIPS) reveals that “organizations can spend more than two-thirds of their revenue on procurement.”

This power manifests in several ways. With the promise of future business value, procurement teams usually take the lead in identifying and qualifying potential suppliers. By building a pool of reliable suppliers, procurement drives the tendering and supplier selection process to maximize business returns.

Procurement also leads contract negotiations, setting the terms and conditions that define the relationship. Based on supplier performance, procurement can significantly influence business outcomes.

When contracts are renewed or new opportunities arise, procurement has the authority to decide whether to retain existing suppliers or open competitive bids for new ones.

Throughout the procurement lifecycle, the function can form, cultivate, and strengthen executive-level relationships with suppliers—relationships that others in the organization may never access. Building connections with CEOs and senior leaders across multiple companies creates a powerful network effect.

Procurement’s power also comes from its role within the company. When the organization needs to reduce costs, improve specifications, or source products that better meet customer needs, procurement is the first team called upon.

Organizations rely on procurement to reduce costs, increase profitability, improve cash flow, create competitive advantages, and deliver stronger returns on investment.

Even more importantly, procurement can connect the organization with suppliers who offer unique capabilities and transformative technologies—critical to differentiating the business from its competitors.

Responsibility

With great power comes great responsibility.

This begins with professionalism, integrity, and ethical behavior. Numerous examples exist of fraudulent conduct involving procurement personnel and suppliers—bribery, extortion, conflicts of interest, and unfair business practices. All of these are unacceptable.

Procurement must act with complete integrity and ethical conduct—without exception.

Procurement’s responsibilities include delivering on the objectives expected by the organization: cost reduction, negotiation of favorable terms, securing reliable sources of supply, managing quality and delivery performance, and providing prompt, professional service.

Business process development, deployment, optimization, and continuous improvement are also major responsibilities—especially in today’s emerging digital supply chain environment. Procurement must ensure the organization is equipped to meet both current and future needs.

This also includes developing skills, training its people, and enhancing capabilities. Procurement must transition from a transactional function to a high-value strategic one. This requires personnel with stronger analytical, strategic, and collaboration skills.

Procurement is responsible for monitoring supplier performance—including costs, quality, and delivery—ensuring they meet expected standards. Additionally, procurement must collaborate with suppliers to identify and create new opportunities that deliver unique capabilities and competitive advantages.

Procurement also carries responsibility toward suppliers. It is essential to implement and manage an effective and robust Supplier Relationship Management (SRM) program.

Responsible sourcing is another key obligation. Environmental considerations and sustainability are critical factors that procurement must actively incorporate into its processes.

Finally, procurement must take responsibility for promoting its own value. Many organizations still believe procurement is simply a transactional function that processes orders and makes phone calls to suppliers. Procurement must demonstrate—not merely claim—its strategic importance by delivering measurable value and differentiation to the business.

“With great power comes great responsibility” is a profound statement.
And it holds just as true for procurement as it does for Spider-Man—or any other superhero.