Procurement's Perfect Storm: Q4 Will Require Strategic Cost Management
September 25, 2025
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⛈️Procurement's Perfect Storm
High inflation, AI disruption, and other challenges.
In the 2013 survival drama All is Lost, the late, great Robert Redford battles a tropical storm in a damaged boat, relying on his strength and wits to pull through eight days of ocean-going hell.
This Q4, it seems that Sourcing Heroes will need to channel their inner Redford to survive what’s described below as a ‘perfect storm’ of high inflation, AI disruption, and other challenges. Luckily, we have examples from four distinct sectors that show how any storm can be navigated with ease... with the help of a GPO.
Also, we check out Colgate-Palmolive’s latest supply chain overhaul, the U.S. government’s proposed $5 billion critical minerals investment fund, and the five WORST procurement categories to work in (according to Reddit).
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Let's get into Issue #021...
The Proven Spend Management Playbook for Procurement Leaders
A playbook for implementing effective spend management strategies that are crucial for maintaining profitability and promoting long-term growth.
🌩️Q4's Perfect Storm in Procurement
How four sectors plan on surviving.
As we dive into the final quarter of the year, it’s becoming clear: a perfect storm is brewing in the world of procurement.
Inflation is relentless, generational workforce shifts are shaking things up, geopolitics are scary, and AI disruptions are adding to the chaos. If you’re in procurement, you’re likely feeling the pressure.
But fear not; group purchasing organizations (GPOs) are here to help you ride the storm, not get swept away by it.
Let’s take a closer look at how four sectors are smartly navigating these turbulent times by tapping into the power of group purchasing.
Man Camps: Reducing Costs in Remote Operations
Life in a man camp isn’t easy, especially when basic supplies cost an arm and a leg due to their remote locations. Transportation fees and limited options can make your service providers’ budgets feel like they’re sinking fast.
Imagine trying to stock a small town in the middle of nowhere. Every delivery can feel like a mini-expedition, and costs can skyrocket before you know it. But by joining forces with GPOs, man camp service providers can tap into pre-negotiated discounts on everything from food to maintenance supplies.
GPOs like Una leverage collective buying power, which means that even in the most isolated areas, service providers can access prices typically reserved for larger operations. This not only helps cut costs but also ensures you’re not compromising on quality. Plus, GPOs can streamline procurement processes through centralization and standardization, allowing you to focus on what matters most: providing a comfortable and efficient living environment for workers.
Foodservice in Clubs & Community Facilities: Feeding the Future
If you manage a club or community facility, you know how foodservice costs can spiral, leaving budgets gasping for breath. Thankfully, GPOs are stepping in to save the day. By joining a GPO, facilities can snag savings of 18-22% on their foodservice costs.
Imagine being able to source high-quality ingredients without the stress of skyrocketing prices. This not only helps keep meals affordable but allows facilities to focus on what really matters: providing a great experience for their young patrons. Plus, GPOs often connect club and community facility service providers with reputable national food distributors, ensuring that you’re not just saving money but also serving up nutritious meals that kids love.
Moreover, the benefits extend beyond just food costs. By streamlining procurement processes through a GPO, clubs and community facilities can reduce administrative burdens, allowing staff to spend more time engaging with the community.
This means more resources can go toward enrichment activities, events, and other programming that enhances the overall experience for everyone involved.
Student Housing: Smart Savings in Campus Life
Indirect procurement costs in student housing can escalate quickly, leaving housing managers scrambling to find budget wiggle room. But with GPOs, student housing providers can access significant discounts on essentials from foodservice to cleaning supplies and furniture.
Una member Campus Cooks saved up to 15% on food costs and enhanced the quality of services offered to students by partnering with Una. The savings extend beyond food; GPOs can help secure competitive pricing on linens, maintenance supplies, office products and more, all critical for running a successful student housing service provider.
The result? Happier students, lower costs, and a more efficient operation that can focus on what truly matters: creating a supportive environment for academic success.
Behavioral Health & Healthcare MSOs: Balancing Cost and Care
Rising costs and complex patient needs make it tough for Managed Services Organizations (MSOs) in the healthcare sector to keep things afloat. The pressure is intense: not only do these organizations have to manage their budgets carefully, but they also have to ensure that patient care remains top-notch.
GPOs like Una can help these organizations save between 20% and 49% across crucial indirect categories like foodservice and sanitation supplies.
Furthermore, GPOs offer the added benefit of reliability, which is crucial in the behavioral healthcare sector. By consolidating procurement through a GPO, MSOs can ensure they have a steady supply of critical items, from medical supplies to administrative software. This reliability is essential for maintaining operational efficiency, allowing healthcare providers to focus on their primary mission: enhancing patient well-being.
✅ Free Assessment Framework
Choosing the right group purchasing organization.
Just as choosing the right suppliers is crucial to your procurement strategy, so is selecting a GPO that aligns with your goals.
It’s a key move in building a more efficient, cost-effective, and agile procurement operation.
Here’s a clear, actionable GPO Evaluation Framework that procurement professionals can use to ask the right questions when considering partnering with a group purchasing organization.
It’s structured around key decision-making categories, each with probing questions designed to evaluate alignment, value, and fit.
Snag a copy today and see if your GPO partner is checking all the boxes.
📰 In Other News...
Keeping a pulse on the industry.
Colgate-Palmolive Launches a Fresh Supply Chain Transformation Program
Despite having only recently completed a two-year streamlining initiative, Colgate-Palmolive has launched a minty-fresh, $300 million productivity program, including an investment in its global supply chain, as announced by CFO Stanley Sutula during an August 1 earnings call.
According to Supply Chain Dive, the initiative aims to restructure parts of the organization and streamline operations to reduce overhead and enhance efficiency. Sutula said the program will focus on optimizing resource allocation and the supply chain itself.
Why so soon after completing a two-year effort to streamline its supply chain? You guessed it: costs are rising faster than expected due to tariffs and increased raw material prices.
CEO Noel Wallace highlighted the need for agility in responding to shifts in consumer demand, particularly as preferences change between higher-priced multipacks and more affordable single packs.
Colgate-Palmolive has revised its projected tariff costs for 2025 to $75 million, down from $200 million, reflecting the latest finalized tariffs as of July 31.
The Five WORST Procurement Categories to Work In
Do you work in one of the worst categories in procurement? According to this Reddit thread, here are the worst five:
- Legal Services: Sourcing legal firms is challenging because "the level of expertise, sensitivity, and it’s hard to switch once litigations are ongoing." Additionally, in-house legal teams often have their "favorites," complicating the sourcing process.
- Aerospace: This category is noted for its long-term contracts, with one user stating, "No leverage. 30+ year contract. No savings, just claims. Everyone hates you because the vendor always wants more money."
- Capex and Custom Machinery: These projects can be complex and multi-annual. One commenter remarked, "Capex/custom machines/multi-annual projects are the most difficult but also the most rewarding," highlighting both the challenges and the potential benefits.
- Single-Source Goods (e.g., Lab Equipment): A user pointed out that "single source (e.g., lab equipment) is... the worst for savings and maintenance, due to limited options," making it difficult to negotiate better deals.
- Indirect Procurement: “Indirect is the least favorite I’ve touched. Boring, terrible data, pain in the ass, and nobody cares about it.”
We’re glad this complaint about indirect procurement made it onto the list, because it gives us an opportunity to remind readers that group purchasing organizations like Una shine when it comes to slashing costs in indirect categories!
GPOs save you money, time, and effort by leveraging billions in buying power to unlock savings for indirect categories including travel, office supplies, and shipping.
Check out our Playbook: Getting the Most Value Out of Your Indirect Spend Categories, designed to help you understand the significance of indirect spend, the challenges it presents, and how you can unlock the value hidden within these categories.
DFO in Discussions to Establish $5 Billion Critical Minerals Investment Fund
The U.S. is in discussions to establish a $5 billion fund aimed at boosting supplies of critical minerals, with a focus on mining investments.
The initiative, led by the U.S. International Development Finance Corporation (DFC) in collaboration with New York's Orion Resource Partners, seeks to address supply chain vulnerabilities, particularly concerning minerals like copper, cobalt, and rare earth elements.
Key areas of interest include the Democratic Republic of Congo, the world's largest cobalt producer and a major copper source, as well as potential projects in Ukraine and Greenland.
This fund represents a significant step in U.S. efforts to secure minerals amid rising global competition, especially from China, which dominates the processing of various minerals.
The DFC has already invested in mining projects, including a $150 million loan for a graphite mine in Mozambique, and aims to enhance its role in U.S. foreign and economic policy.
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