This blog is part of a series drawn from Closing the Gap: How Procurement Moves from Insight to Action, a whitepaper produced by Beroe in partnership with Kearney. The series explores why procurement’s operating model is struggling to keep pace with its expanded mandate – and what it will take to close the gap between intelligence and action.  

In our previous blog, we examined how procurement’s environment has become continuous while its decision model has remained largely episodic – and how the function has been structurally elevated without being structurally redesigned. In this post, we move from the structural picture to the operational reality: what that mismatch actually looks like for the teams living it every day.

Why procurement teams are reactive – and what it’s costing them

Procurement leaders are familiar with the language of proactivity. Category strategies and operating models speak about anticipating market change, strengthening supplier relationships, improving resilience, and capturing value ahead of competitors. Yet the lived reality in many procurement teams is very different. The function is still dominated by firefighting. 

A supplier misses a delivery window. A stakeholder escalates an urgent requirement. A tariff announcement changes landed cost assumptions. A commodity index moves unexpectedly. While procurement is able to respond to these challenges individually, this doesn’t equate to being in control. Reactive firefighting is not the same as proactively improving competitiveness. 

In many organizations, this dynamic is already visible. Procurement teams are confronted with increasing volumes of external signals, like market volatility, supplier risk alerts, and geopolitical disruption, while internal data remains fragmented and difficult to act upon. The result is a function that is, in effect, drowning in dashboards, but suffocating through lack of outcomes, and one where teams are struggling to distinguish what matters and to act in time.

The new pace of change

What’s become different about how procurement manages change is the speed, frequency, and interconnectedness of it. Disruption is no longer episodic. It is continuous, compounding, and interconnected. Single events can cascade across categories, suppliers, and cost structures in ways that are difficult to isolate and even harder to predict. Information does not arrive neatly within category boundaries; it accumulates, overlaps, and evolves.

The need to interpret these connections, and to identify both risks and opportunities, means market sensing has become a core procurement capability. It is no longer enough just to know what happened in a market. Procurement needs to understand what a signal means for the enterprise: which categories are exposed, which suppliers are affected, which contracts create flexibility or constraint, what alternatives exist, and what decision is required.

Why procurement is experiencing signal overload and decision fatigue

Procurement has become highly effective at observing, but far less effective at deciding. The more signals procurement receives, the more decisions it must triage. Not all signals are equal, but distinguishing what matters requires time, context, and coordination. As signal volume increases, so does decision fatigue. 

This is a challenge not just of complexity, but also of scale. In large enterprises, procurement can span thousands of categories and suppliers, each exposed to different market dynamics, risks, and opportunities. No individual or team can continuously monitor and respond to this level of variation in real time. As a result, attention is naturally drawn to the most visible or urgent issues, while smaller, cumulative opportunities are left unaddressed.

What impact does proactive engagement have on supplier relationships?

Firefighting becomes a real issue when it stops being an exception and becomes the operating model. Teams focus on resolving immediate problems rather than redesigning the conditions that create them. When procurement engages suppliers mainly in moments of pressure, escalation, or negotiation, it becomes harder to build the trust required for resilience. 

This matters, because in constrained markets suppliers do not treat all customers equally – something that became painfully clear for many organizations when Covid-19 brought global supply chains to a virtual standstill. The organizations that thrived were not always those that negotiated hardest, but those whose suppliers chose to protect first.

Why the category manager is the pressure point

The category manager sits at the center of this dynamic, expected to operate strategically, but constrained by the operational burden of managing a multitude of complexities in real time. The lion’s share of their effort is spent not on making better decisions, but on enabling decisions to be made at all. In this environment, firefighting ceases to be a temporary condition. It becomes the operating model. 

This is the structural challenge procurement now faces. Not a shortage of data, tools, or talent, but a function organized around responding to the present rather than shaping the future. And until that changes, the gap between what procurement is expected to deliver and what it is equipped to do will continue to widen. 

For the category manager at the center of this dynamic, the path forward is therefore a fundamentally different way of operating – one where the infrastructure does the heavy lifting, and human judgment is freed up for the decisions that actually matter. 

This is the third in a series of blogs drawn from Closing the Gap: How Procurement Moves from Insight to Action, a white paper authored by Beroe and Kearney. Read the full whitepaper

To find out how Beroe MAX, powered by Kearney, is closing the gap between visibility and action, read the full press release

Author

Vel Dhinagaravel

Founder & CEO, Beroe

LinkdIn
Pioneering procurement intelligence since 2006, Vel disrupted the supplier-buyer power imbalance, giving procurement teams the market intelligence edge they were missing. His vision has built Beroe into a global leader in decision intelligence, transforming how enterprises make procurement decisions.

Prerna Dhawan

Chief Product Officer, Beroe

LinkdIn
With 18+ years of experience in developing client solutions, managing strategic relationships, defining product strategies and driving profitable growth, Prerna has worked with procurement, supply chain and corporate strategy teams across many Global 2000 companies, helping them embed intelligence and analytics as enablers of competitive differentiation and business transformation. Prerna has developed tech-enabled service propositions, launched products, driven strategic initiatives, and built high-performing teams.
Related Reading

Featured Image

30 Jun, 2026

How should food companies source palm oil in 2026? Price risks, trade routes, and procurement best practices

Featured Image

30 Jun, 2026

Direct-to-consumer models: Enabling direct access to consumer healthcare services

Featured Image

24 Jun, 2026

Procurement in transition: From episodic to continuous