Introduction:
Organisations are under increasing pressure to optimise their procurement function – cutting costs, mitigating risks, and improving supplier relationships. That’s where a procurement consultancy partner can offer real value. However, the wrong choice can lead to wasted resources, strategic misalignment, and more frustration than progress. Here’s what to avoid when selecting a procurement consultancy partner, so you can make a confident, strategic decision.
Lack of Industry Experience:
Not all procurement consultancies are created equal. Some may boast general consulting prowess but lack hands-on experience in your specific industry. Procurement in healthcare is wildly different from procurement in manufacturing or IT.
Red Flag: Vague claims of “cross-industry expertise” without clear case studies or references.
What to Look For Instead: Ask for specific examples of work in your sector. Industry-specific insight means faster onboarding, fewer missteps, and more relevant strategies.
One-Size-Fits-All Approaches:
Procurement strategies should be as unique as your organisation. Be wary of partners who offer templated solutions or pre-packaged frameworks without taking the time to understand your internal structure, goals, and constraints.
Red Flag: Over-reliance on proprietary models without customisation.
What to Look For Instead: A procurement consultancy that takes the time to listen, analyse, and tailor their approach to your business needs.
Overpromising and Underdelivering:
Some procurement consultancies promise quick wins, massive savings, and transformation overnight. Sound too good to be true? It probably is.
Red Flag: Bold claims with little transparency about how they’ll achieve results.
What to Look For Instead: Realistic, data-backed projections and a phased implementation plan. A trustworthy partner will talk about how they’ll get you there, not just what they’ll deliver.
Limited Change Management Expertise:
A procurement consultancy that can’t manage the human element of change will leave you with great ideas on paper and zero buy-in from your team.
Red Flag: Focus solely on cost savings, with no mention of communication, training, or stakeholder alignment.
What to Look For Instead: A partner who recognises the importance of culture, leadership alignment, and internal engagement in procurement transformation.
Opaque Fee Structures:
Hidden costs and unclear billing models can derail even the most promising partnerships. If a procurement consultancy isn’t upfront about how they charge, it can lead to budget blowouts and unpleasant surprises.
Red Flag: Vague fee descriptions or shifting pricing models mid-project.
What to Look For Instead: Transparent, well-defined contracts with clarity on deliverables, billing milestones, and contingency costs.
Technology Without Strategy:
Digital procurement tools are essential, but tech without strategy is just an expensive distraction. Avoid consultancies that push software solutions without a broader plan for integration, adoption, and ROI.
Red Flag: Heavy emphasis on software solutions with minimal discussion of strategic outcomes.
What to Look For Instead: A procurement consultancy that aligns technology recommendations with your business goals, maturity level, and long-term vision.
Poor Communication and Rigid Processes:
If your procurement consultancy can’t communicate effectively or adapt to changing business needs, they can quickly become a bottleneck instead of a catalyst.
Red Flag: Slow response times, inflexible project timelines, or a “take-it-or-leave-it” mindset.
What to Look For Instead: An agile, collaborative partner that treats your business as a dynamic environment—not a box to check.
Conclusion:
Choosing the right procurement consultancy partner is a critical decision – one that can impact your cost base, supplier relationships, and internal efficiency for years to come. By knowing what to avoid, you’ll be better positioned to select a partner that drives measurable results, not just promises.
Remember: The best procurement consultancy doesn’t just deliver savings, they deliver confidence, capability, and lasting value.