As Regional Director at the Chartered Institute of Procurement & Supply (CIPS) for Asia, Australasia, Middle East, and Africa, I’ve often reflected on how procurement intersects with broader issues. As procurement professionals, we don’t operate in a vacuum. Every decision about how, where, and from whom we procure can become a political choice, even if that wasn’t our intention.
It may seem like procurement is purely a business function, focused on price, quality, and reliability. But the reality is that many of our decisions have significant political implications. For example, when we choose to source materials from a specific region, we may be aligning ourselves, consciously or not, with certain political ideologies or governance practices. The rise in ethical procurement policies highlights this. Many organisations, including those I work with in the Middle East, are placing increasing importance on ensuring that their supply chains are free from unethical practices, such as child labour or conflict-sourced materials.
It’s not just about price or availability anymore. According to a World Economic Forum report, 81% of consumers now expect companies to take responsibility for the ethical and environmental impacts of their supply chains. This shows how procurement decisions are being scrutinised not only for their economic value but also for their moral and political implications. Whether we realise it or not, our actions and decisions make statements about what we believe in and what we stand for.
Geopolitical instability and supply chains
One of the most significant challenges we face today is how geopolitical instability is reshaping global supply chains. As procurement professionals, we’re all too familiar with the disruptions caused by political tensions, trade wars, and regional conflicts. Nowhere is this more evident than in the MENA region.
The current political climate in the region has made businesses increasingly vulnerable to supply chain disruptions. This isn’t just speculation; our data shows that 75% of procurement professionals have had to alter their supply chain strategies in the past two years due to geopolitical risks.
Whether it’s escalating tensions in the Gulf, sanctions, or trade restrictions, businesses in the Middle East are constantly adapting their procurement strategies to navigate these political challenges.
We’ve seen this firsthand with key industries like oil and gas, where delays in shipments and price volatility have become common. When choosing suppliers, procurement professionals now have to assess not just cost and quality but also the risk of political instability. This adds an extra layer of complexity to our roles, and we must be proactive in managing these risks.
Ethical considerations in procurement
In addition to navigating political landscapes, there’s growing pressure for ethical procurement. Today’s consumers, investors, and regulators demand transparency in supply chains. Whether ensuring that suppliers adhere to human rights standards or sourcing from environmentally sustainable regions, these choices reflect a company’s political and ethical values.
This shift toward ethical sourcing is also reflected in recent data from the CIPS Global Procurement Survey, where 68% of procurement professionals identified ethical sourcing as a top priority. It’s crucial to remember that how we procure is more than just a business decision—it’s a reflection of our ethical and political values. And in a world where consumers and stakeholders expect more transparency, our procurement decisions must align with the ethical compass of our organisations.
Building resilience in a politically charged world
Supply chain resilience is paramount. Recent political events have forced us to rethink our procurement strategies and diversify our supply bases. Gone are the days when we could rely on a single supplier or region. Today, it’s all about resilience; building flexibility into our supply chains so that we can adapt to disruptions, whether caused by political instability or natural disasters.
According to a McKinsey report, 93% of procurement leaders are now prioritising supply chain diversification. This aligns with what we’ve seen at CIPS, where procurement professionals across the Middle East and beyond are actively seeking out alternative suppliers and regions to reduce risk. This doesn’t just mitigate the impact of geopolitical events; it also strengthens our overall supply chain, making it more agile and responsive to future disruptions.
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In short, procurement is no longer just a back-office function focused on securing the best value agreements. It’s a complex, multifaceted role that intersects with politics, ethics, and global stability. As procurement professionals, we must recognise that our brands matter beyond just our roles. The decisions we make about how, where, and from whom we procure have far-reaching implications, not just for our organisations but for the world at large.
