Procurement’s Next Evolution: AI, Supplier Relationships & the Future of Buying

Procurement is no longer just about cutting costs—it’s about adding value, building strategic supplier relationships, and leveraging technology to streamline operations. In this engaging conversation, Malik Akhtar, VP, Head of Procurement Consumer Health Product Supply at Bayer, sits down with Supplier Day CEO, Caitlyn Lewis, to discuss how procurement is evolving and what leaders must do to stay ahead.

Key Takeaways from the Conversation:

• The Unexpected Journey into Procurement – Malik shares how he transitioned from a chemical engineering background into procurement, highlighting the importance of adaptability and learning agility in navigating different roles. His experience underscores that a deep understanding of business operations—rather than just procurement expertise—is key to long-term success.
• Direct vs. Indirect Procurement: A Different Approach to Relationships – Moving from direct to indirect procurement was a defining moment in Malik’s career. He explains that while the fundamentals of relationship-building remain the same, the focus shifts:
  • Direct Procurement: Emphasis on long-term supplier partnerships, often in regulated industries.
  • Indirect Procurement: Greater effort needed to build internal stakeholder trust and demonstrate procurement’s strategic value.
• How Procurement Can Prepare for Future Disruptions – The unpredictability of global supply chains has changed procurement forever. Malik discusses how Bayer is mitigating risk by:
  • Diversifying supply sources – Reducing dependency on global supply chains and increasing regional sourcing.
  • Implementing dual sourcing strategies – Ensuring business continuity in case of disruptions.
  • Embracing flexibility – Moving away from rigid, cost-driven procurement towards a more adaptable, value-focused approach.
• The Role of AI & Digitalisation in Procurement – Malik is particularly excited about the role AI and digital platforms will play in shaping procurement’s future. He highlights:
  • AI-driven guided buying – Making procurement as seamless as an Amazon-like experience.
  • Supplier collaboration platforms – Bayer is rolling out a Salesforce-based system to improve supplier relationship management, centralising key information and improving transparency.
  • Using AI for smarter decision-making – Procurement teams will have better data at their fingertips, enabling them to shift focus from administration to value creation.
• What Makes a Supplier a Long-Term Partner? – While Malik doesn’t personally select suppliers, he shares the core principles that guide Bayer’s supplier relationships:
  • Technical Capabilities – Suppliers must meet strict operational and regulatory standards.
  • Commercial Transparency – Open, honest communication is key to avoiding misalignment.
  • Strategic Fit & Stability – Bayer looks for partners who will still be around in 5-10 years.
• How to Build Stronger Supplier Relationships – Malik emphasises that procurement is ultimately a people business. Success comes from fostering relationships that encourage suppliers to go beyond the contract and offer discretionary effort. The best supplier relationships aren’t just transactional—they create mutual value and innovation opportunities.
• Turning Around a Struggling Supplier Relationship – Malik shares a candid example from his time in marketing procurement, where a poor supplier relationship was actually caused by internal failures in procurement—unclear briefs, unrealistic expectations, and unstructured feedback. The key lesson?
  • Internal alignment is just as important as supplier performance.
  • Honest conversations with suppliers help reset relationships and unlock better outcomes.
• Being a ‘Customer of Choice’ – Finding the Right Fit – Malik likens supplier relationships to a dating app—finding the right match is crucial. Rather than expecting every supplier to treat Bayer as a strategic priority, he focuses on:
  • Quality over quantity – Not every supplier should see Bayer as a top client, and that’s okay.
  • Maximising value where there’s alignment – The best relationships happen when both sides see long-term benefits.
  • Fostering relationships beyond contracts – Creating supplier partnerships that drive innovation, not just efficiency.

Final Thoughts: Procurement’s Strategic Future

Malik reflects on how procurement has evolved from a purely transactional function to one that actively contributes to business strategy. While much progress has been made, there is still work to do—procurement must continue pushing for a seat at the decision-making table, ensuring its insights shape long-term business success.