Turning Pressure into Performance: Procurement’s Role in Manufacturing Today

Manufacturing organisations continue to face a complex set of operational pressures, many of which have intensified over the past few years. From rising energy costs to fluctuating material prices and changing taxation policies, manufacturers are being asked to do more with less – all while maintaining efficiency, competitiveness, and quality.

Energy Costs: A Growing Threat to Stability

One of the most pressing challenges remains the high cost of energy. With the Energy Bill Relief Scheme now ended, businesses have been left exposed to volatile energy markets without substantial government backing. A recent survey found that 37% of manufacturers identify energy prices as their single biggest operational concern. These elevated costs aren’t just squeezing margins – they’re also undermining long-term investment and making it harder for businesses to plan for the future.

Material Volatility and Supply Chain Disruption

Alongside energy, material costs continue to climb. Global supply chain disruptions and geopolitical uncertainty have made raw materials more expensive and less predictable to source. This ongoing volatility is applying real pressure on margins and creating uncertainty throughout the production process. When procurement functions are under-equipped to manage supplier relationships and adapt to changing conditions, the entire operation suffers.

Taxation and Its Impact on Investment Flexibility

Taxation has also emerged as a growing concern. Changes to tax policy, such as increases in payroll taxes and adjustments to National Insurance Contributions, are having a tangible financial impact on manufacturers. These costs don’t just affect profitability – they also reduce the flexibility manufacturers have to respond to market changes, invest in innovation, or upskill their workforce.

In the face of these challenges, well-trained procurement and supply professionals are more critical than ever. Strategic procurement goes far beyond cost-cutting; it’s about understanding markets, building resilient supply chains, and creating value across the business. When procurement teams have the right training, they are better positioned to negotiate smarter energy contracts, identify alternative sourcing strategies, and leverage data to forecast and manage risk effectively.

Empowering Procurement to Lead Under Pressure

This is where SR Supply Chain Consultants Ltd (SRSCC) offers real impact. Through industry-relevant training tailored to the current economic climate, SRSCC helps professionals develop the commercial acumen and practical skills needed to navigate cost pressures and strengthen supply-side performance. Whether it’s understanding the implications of changing tax policies or improving cost visibility across materials and services, the right training helps businesses remain agile and financially resilient.

Ultimately, the challenges facing manufacturing are not going away. But by investing in people – particularly those working at the heart of procurement and supply chain functions – manufacturers can build the capability to respond effectively. With the right skills and knowledge, organisations can not only withstand current pressures but position themselves for smarter, more sustainable growth in the future.

SHARE THIS POST

Discover our CIPS Courses

Our courses are designed to accelerate your career in the procurement and supply chain industries. If you would like to learn more about our courses, call the SRSCC team on 01772 282555 or complete our contact form. Start your journey to success today.

CIPS Level 3

Advanced Certificate in Procurement and Supply Operations.

CIPS Level 4

Diploma in Procurement and Supply.

CIPS Level 5

Advanced Diploma in Procurement and Supply.

CIPS Level 6

Professional Diploma in Procurement and Supply.

Related Posts

Want to learn more? Contact our team now

Turning Pressure into Performance: Procurement’s Role in Manufacturing Today
2025-06-14T10:17:08+00:00
lucy interact