By Hamed Al Ghaithi, Chief Strategic Communication & Research Officer, BidBid Technologies

Business norms are being redefined at an unprecedented rate never seen before. Still, some companies view procurement as s a way to cut costs, but failing to see the whole  picture.

No doubt that companies seek cost savings, but strategic procurement is much more than that. It’s about leveraging the supply chain to fuel innovation, improve agility, and align with sustainability to drive real revenue growth.

Many companies miss out because they’re focused on the wrong thing. They don’t realise that procurement can be a revenue driver, not just a cost cutter. It’s time to challenge that. Here are three examples of how strategic procurement can take businesses to the next level.

Suppliers are innovation partners

For years, businesses have treated suppliers like vending machines — punch in their order to get the product. But when they do that, they miss out on something far more valuable: the potential for innovation.

Companies may leverage their supplier’s knowledge, innovation, and technology, when they view them as partners rather than suppliers. Suppliers often sit on ideas that could generate the next big source of income, but companies will never know if they are only focused on cutting costs.

Innovation doesn’t always come from inside the company. By collaborating with suppliers, companies gain access to new ideas, technologies, and capabilities that can give them a competitive edge and help them create new products faster. And faster innovation means more opportunities to capture market share and grow their revenue.

Agility: The fastest wins the race

Slow, outdated procurement processes can slow companies down. If their procurement team is bogged down with inefficiencies, companies are going to miss opportunities, experience delays, and lose out to more agile competitors.

Zara, the global fashion retailer, has turned procurement into an art form, one that directly fuels its business model. The company’s ability to rapidly adjust its supply chain allows it to get new designs into stores within weeks, not months like many competitors. Research (HBR 2004, Forbes 2013 and others) shows that Zara’s procurement strategy isn’t just about cutting costs — it’s about being incredibly agile, getting products to market at the right time, and staying ahead of trends. This agility has allowed Zara to grow into a $20bn empire in a fiercely competitive industry.

Zara’s secret is an integrated, fast-moving procurement process that can respond to changes in demand practically overnight. They’ve streamlined their operations so well that they can adjust their inventory based on customer feedback almost in real-time. That’s how companies can turn procurement into a revenue-generating machine.

When the procurement is fast and responsive, companies can meet demand more effectively, launch products quicker, and seize new opportunities as they arise. The faster they can adapt, the more revenue they can capture. In industries like retail, tech, and manufacturing, speed is the difference between being a market leader or a forgotten name.  

Sustainability is a profit with purpose

Sustainability is sometimes viewed as a buzzword. But the reality is people care. They care more than ever. And if the company isn’t on board with this, it’s not just a moral misstep — it’s a financial one.

Sustainability offers real financial advantages in addition to being a feel-good narrative. Consumers today are prepared to pay more for brands that share their values, and Unilever has benefited from this change in consumer preferences. Sustainability in procurement means selecting suppliers who prioritize ethical practices, reducing environmental impact, and improving working conditions. It creates a supply chain that’s both responsible and resilient.

By aligning companies’ procurement strategy with sustainability, they attract a growing segment of eco-conscious consumers willing to spend more on ethical brands. Additionally, sustainable procurement can open up new markets, help companies win over investors, and differentiate them from competitors — all of which drive long-term revenue growth.

Strategic procurement: Bigger picture

The role of procurement has changed over time; it is no longer only about obtaining the best deal and minimising costs. Procter & Gamble, Zara, and Unilever are just a few of the companies that have demonstrated how strategic procurement can foster innovation, increase agility, and open up new markets through sustainability.

When procurement focuses only on cutting costs from suppliers, companies limit what it can do for the business. But when they open their mind to the possibilities of strategic procurement, they see that it’s a major lever for growth. It’s about positioning their company to thrive in an increasingly complex, competitive world.

What then holds Omani companies’ progress? Are they still operating under the outdated assumption that procurement is merely a standard cost-cutting exercise? Or are they prepared to see procurement as a potent revenue and growth engine that it really is? Omani businesses that change their perspective and modify and advance their procurement methods will be the ones to set the example for how the Omani economy develops in the future.

In Oman’s quickly expanding economy, procurement is ultimately about more than just cutting costs. It’s all about adding value by fostering innovation, streamlining procedures, and adjusting to the changing needs of clients in the future. That’s where Omani businesses stand to gain the most. Additionally, Omani businesses will enhance their market position and propel themselves to new heights by adopting strategic procurement.