Making indirect procurement more efficient can help with meeting demands
“People working in procurement face some of the most challenging conditions the profession has ever seen,” states Raj Patel, Managing Director for the UK and Ireland at RS, in his foreword to the RS and Chartered Institute of Procurement and Supply (CIPS) Indirect Procurement Report 2025. “Not only must they wrestle with external factors such as inflation, geopolitical tensions and supply chain disruptions, but they’re also under increasing pressure to make a tangible contribution to organisations’ wider carbon-reduction efforts.”
This article explores how both these challenges and sector-specific demands are affecting the UK water industry. What are the biggest issues facing indirect procurement professionals in this field – and how can improvements to maintenance, repair and operations (MRO) help to alleviate pressure?
A wide range of challenges
Asked about procurement challenges in the next twelve months, respondents to the Indirect Procurement Report survey referred to the same issues as Botfield. More than a third (37%) mentioned inflation and higher costs, while only slightly fewer cited managing risk in the supply chain (31%) and supply chain disruption (30%).
Every sector has its own issues too. As the RS industry report highlights, for water and wastewater these include climate change, in terms of both droughts and floods, as well as population growth, which creates pressure to increase capacity. Complying with legislation governing water quality and the environment requires time and money, the latter of which is hard to secure whether through funding or investment.
Another significant challenge is ageing infrastructure. Across all the sectors represented in the 2024 RS and Institution of Mechanical Engineers (IMechE) Maintenance Engineering Report, the biggest driver of unscheduled downtime was ageing assets, at 29%. For those in the utilities sector, however, this figure rose to 35%.
“It’s about the length of time these systems have been in existence,” says Chris Cruise, Industry Sector Manager for Utilities at RS, “Even if we consider assets built following The Water Act of 1973, this still means up to 50 years old.”
Moreover, he continues, although these organisations are always investing, they cannot simply replace the whole water system. But what can they do to address these myriad challenges?
1. Supplier consolidation
One solution for indirect procurement professionals working in the water industry is to consolidate suppliers. This is one of the benefits of using a digital procurement service, mentioned by 28% of the respondents to the Indirect Procurement Report 2024 who use such a service.
Working with a smaller number of trusted suppliers presents other advantages too. RS, for example, offers same-day delivery and expert advice. Supplier rationalisation can also help to increase compliance, a major concern for those in a highly regulated industry such as water.
2. Inventory solutions
Inventory solutions are another possibility, taking MRO efficiencies to the next level. Inventory solutions ensure that vital supplies such as PPE, workwear, tools and engineering consumables are always available when needed. This is crucial to the water industry, argues Cruise, as these companies cover such large areas.