HRS Heat Exchangers says equipment suppliers now face more complex requirements as businesses increasingly factor sustainability, governance and digital transformation into purchasing decisions.
Over the last decade, business procurement has moved from focusing mainly on performance and cost to a strategic function influencing multiple departments. Shane King, design director at HRS, says, “simply providing the best technical solution at a competitive price is no longer sufficient. We need to understand the numerous, and sometimes competing, requirements of the different business functions which influence the final purchase.”
Procurement committees typically include up to 13 members from IT, finance, sales, procurement, legal, product, operations, engineering and the C-suite. Srihari ‘Hari’ Kosuru, international management consultant, notes: “Procurement sits at the intersection of strategy, technology, and value creation… At the same time, the rapid advancement of digital solutions, AI, and data-driven decision-making is transforming how procurement operates.”
Sustainability and ethical considerations are increasingly embedded across the value chain. Collaborative approaches with suppliers are used to reduce Scope 3 emissions, improve energy efficiency and traceability, and explore new processing solutions. HRS says complex industries such as food production, pharmaceuticals or environmental protection require multi-functional involvement to manage risk effectively.
AI adoption is growing. A 2026 survey by Icertis found 44 per cent of companies use AI in contracting workflows, with 53 per cent of executives expecting AI to negotiate deals autonomously within 12 months. HRS warns that in highly regulated or complex sectors, human oversight remains essential.
HRS advises applying the “10C test”, competence, capacity, commitment, control processes, financial stability, costs, communication, compliance, consistency and culture, across all business functions when assessing suppliers.
