Procurement as a Competitive Advantage: Insights from Pete McMorris

Procurement is often misunderstood as a transactional function, but in reality, it plays a critical role in driving innovation, resilience, and strategic business growth. In this conversation, Pete McMorris sits down with Supplier Day CEO, Caitlyn Lewis, to share lessons from his diverse career—from factory operations to global procurement leadership.

Pete reflects on how procurement must adapt to an unpredictable world, build meaningful supplier partnerships, and ensure businesses remain agile in the face of disruption.

Key Takeaways from the Conversation:

• Procurement Must Be Strategic, Not Just Transactional – Too often, procurement is seen as a back-office function focused solely on contracts and cost management. Pete argues that procurement professionals must view themselves as business leaders, understanding strategic priorities and aligning supplier capabilities to business needs.
• ‍The Power of Supplier Partnerships: Beyond Cost-Savings – Pete shares how his experience with Partner to Win, a global supplier collaboration initiative, transformed his view of procurement. He highlights that true supplier partnerships drive:
  • Innovation – Suppliers bring expertise and new solutions that businesses wouldn’t discover alone.
  • Resilience – Strong supplier relationships help companies navigate disruptions more effectively.
  • Sustainability – Collaborating with suppliers accelerates ESG initiatives and responsible sourcing.
• Resilience is a Competitive Advantage – Pete shares a critical learning from a major supply chain crisis, where bird flu and a factory fire led to a $500M loss. The experience reshaped his approach to risk management, leading him to focus on:
  • Supplier diversification – Ensuring businesses have alternative suppliers to avoid single points of failure.
  • Supply chain agility – Developing contingency plans and investing in proactive risk mitigation rather than reacting after a crisis.
  • Cross-functional collaboration – Working closely with sales, marketing, and operations to ensure procurement decisions align with business strategy.
• How to Build Trust with Suppliers – Procurement is a people business, and the way companies treat their suppliers determines the quality of those relationships. Pete emphasises:
  • Respect is fundamental – Many companies fail to treat suppliers as partners, which limits collaboration.
  • Trust takes years to build but minutes to destroy – A single misstep can erode supplier confidence, making it essential to align expectations, maintain transparency, and deliver on commitments.
  • Strategic partnerships require mutual benefit – Companies that support supplier growth and innovation will receive priority access to new ideas, better service, and long-term commitment.
• Procurement Needs to Sell, Not Just Buy – Pete challenges procurement teams to think like salespeople when engaging suppliers. To become a Customer of Choice, companies must:
  • Clearly communicate their vision and priorities – Suppliers need to understand why investing in the relationship is worthwhile.
  • Offer real opportunities – Suppliers should feel that working with your company is valuable, whether through innovation pilots, long-term contracts, or co-development initiatives.
  • Deliver on promises – Nothing damages credibility more than inviting suppliers to events or discussions that lead nowhere. Procurement teams must follow up and act on supplier conversations.
• Emerging Trends That Will Shape Procurement - Pete shares the key trends he’s most excited about and how they will transform supplier relationships:
  • ESG & Sustainability – Companies must go beyond compliance and proactively invest in sustainable supply chains to stay competitive.
  • AI & Digital Procurement – AI-powered insights can improve decision-making, enhance supplier visibility, and automate routine tasks, allowing procurement professionals to focus on strategic value creation.
  • Internal Collaboration – Procurement must embed itself within core business teams rather than operating in isolation.
• Lessons from Formula One: “Does it Make the Car Go Faster?” – Drawing from his experience working in motorsports procurement, Pete shares a simple but powerful analogy:
  • In Formula One, every procurement decision is measured against a single question: Does this make the car go faster?
  • Procurement teams in other industries should apply a similar mindset—how does this decision drive strategic business success?

Final Thoughts: Procurement’s Role in Business Success

Procurement isn’t just about buying—it’s about selling a vision, building resilient supply chains, and unlocking competitive advantage through supplier collaboration. Pete emphasises that procurement leaders must:

• Think strategically and proactively manage risks
• Invest in strong supplier partnerships that deliver long-term value
• Use technology and data to drive smarter decision-making
• Position procurement as a key business enabler, not just a cost centre