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Procurement in Transition: Between Growth, Profitability, and AI
In Conversation with Aleksei, Head of Procurement
Many companies today talk about Artificial Intelligence. Others talk about cost reduction. Still others about digitalization.
Yet in the day-to-day reality of procurement, all these topics are closely intertwined.
In conversation with Aleksei, Head of Procurement at Grover, it quickly became clear: procurement is currently going through what is probably one of the biggest transformative phases in recent years.
From Corporate Giant to Start-up
Aleksei began his procurement career in the classic corporate environment.
After stints at Japan Tobacco International and Bosch, he made a deliberate move into the start-up world.
His motivation was surprisingly simple:
"I wanted to work somewhere where you can truly feel your own impact."
While savings of millions in large corporations often go largely unnoticed, in a start-up every single decision has an immediate effect on the company.
Growth Alone Is No Longer Enough
A central theme of our conversation was the development of many start-ups.
For a long time, the motto was:
Growth at any cost.
Rising customer numbers were paramount.
But with the significant increase in financing costs, the situation changed abruptly.
Suddenly, questions like these moved to the forefront:
- Is the business model profitable?
- Does the company make money on every single product?
- Are the processes efficient enough?
This development now plays a key role in procurement in particular.
Procurement Is Becoming More Strategic
Aleksei described very impressively how procurement today is far more than price negotiations.
Modern procurement teams deal with, among other things:
- Cost structures
- Process design
- Supplier strategies
- Digitalization
- Risk management
- Profitability
Procurement is increasingly evolving from an operational ordering function to a strategic value driver.
Digitalization Is Both a Curse and a Blessing
When I asked about the biggest operational challenges, his answer came without hesitation:
"Digitalization."
Interestingly, he meant this in both a positive and a critical sense.
On one hand, significantly more powerful systems and AI tools are available today.
On the other hand, companies now work with a vast number of applications, platforms, and data sources.
The real challenge is no longer a lack of access to information.
Rather, it lies in maintaining an overview.
AI Saves Time – But Brings New Responsibilities
I found his perspective on Artificial Intelligence particularly fascinating.
AI can accelerate tendering processes, analyze documents, and significantly simplify routine tasks.
At the same time, entirely new questions arise:
- What data may actually be entered into public AI systems?
- How do you protect confidential supplier information?
- How do you prevent violations of NDAs?
- Which tasks belong in a company's own AI system and which do not?
Especially in procurement, where prices, contracts, and strategic decisions are handled on a daily basis, governance becomes the decisive success factor.
Europe's Challenge
Another interesting thought was the international comparison.
While European companies must take data protection and compliance very seriously, other regions are often able to act with considerably more flexibility.
This creates a genuine conflict of objectives:
How can you remain innovative without violating regulatory requirements?
For Aleksei, one thing is certain:
The question is not whether companies will use AI.
The crucial question is:
How do we use AI responsibly?
My Conclusion
What I particularly appreciated about this conversation:
It was hardly about individual tools.
It was about mindsets.
Procurement is currently undergoing fundamental change.
Successful procurement organizations in the future will be those that master profitability, digitalization, and data responsibility simultaneously.
Many thanks to Aleksei for the open conversation and the fascinating insights.