The Power of Commercial-Procurement Alignment

When procurement and commercial teams are aligned, the entire business performs better. But getting them on the same page isn’t always easy. At this year’s Catalyze conference, Juan Echeverri (Head of RGM & Commercial Planning for LATAM at Holcim) joined Laurent Dosogne (Co-Founder and Senior Consultant at Nexo Consulting) to unpack what it takes to foster true collaboration between these critical functions.

From fostering internal alignment within companies to negotiating partnerships with demanding external customers, in this blog we’ll provide actionable takeaways that resonate across industries.  

Procurement vs. Commercial: Different Mandates, Shared Outcomes

Procurement and commercial teams often start from fundamentally different vantage points. Procurement’s mandate is to manage supplier relationships, reduce costs, and ensure operational efficiency, while commercial teams focus on driving top-line growth, building customer relationships, and capturing market share. These differing objectives can lead to friction—but they don’t have to. When both functions recognize that cost efficiency and revenue growth are two sides of the same coin, they can align around shared goals like profitability, customer value, and long-term sustainability. True business impact happens not when one side wins, but when both functions move in lockstep.

The Case for Collaboration Beyond Price

Traditionally, procurement and commercial teams have operated in silos—procurement focused on cutting costs, commercial teams driven by revenue and relationship growth. This fragmented approach leads to inefficiencies, conflicting priorities, and missed opportunities.

But that’s now changing.

• 71% of chief procurement officers aim to improve margins through cost reductions

• 61% are now prioritizing stronger collaboration between procurement and commercial teams

A unified growth strategy across internal stakeholders builds trust, accelerates decision-making, and unlocks value for the entire business.

“The more you share with the salespeople, the more they feel on board with your strategy,” Dosogne advised. “Of course, you might not share all your costs and everything… But if your salespeople are mature enough, then I would say you can start sharing a bit more. The joint business plan, you can't do this without the salespeople because they need to own it.”

Key Considerations for Internal Alignment

For commercial and procurement teams to move beyond silos organizations need structure, shared accountability, and a long-term mindset. Key principles include:

• Joint Business Plans (JBPs): Co-developed strategies ensure procurement and sales are working toward shared goals. These plans should include aligned incentives, transparent metrics, and clear accountability.

• Trust and Collaboration: According to Dosogne, "You really wanna have a system that aligns everybody in the right direction.” Trust isn’t built overnight—it requires a consistent focus on shared goals and mutual respect between stakeholders.

• Value Creation Over Cost Cutting:
  Cost savings matter—but true transformation happens when teams prioritize long-term value, supported by transparency, shared KPIs, and open dialogue.

Key Steps for Managing Demanding Customers

In industries with high expectations—think retail giants or global manufacturers—procurement and commercial teams face the added challenge of working with demanding customers. Here are a few ways to approach this:

1. Leverage a Joint Business Plan (JBP): JBPs create a framework for aligning priorities, balancing negotiation power, and fostering trust among stakeholders. Focusing on areas of common interest such as efficiencies and promotional strategies can turn potential conflicts into opportunities for growth.

2. Operational Excellence: When working with demanding customers, businesses need precision in their operations. Large retailers’ emphasis on logistics compliance, open-book costing, and transparent pricing requires procurement and commercial teams to operate with agility and clarity.

3. Prioritize Relationship-Building: The transition from transactional relationships to partnerships depends on trust and collaboration. "It’s not about imposing KPIs from one side and hoping everything works. It should be win-win," Dosogne explained.

4. Align Incentives and Strategies: Transparent metrics, clear forecasts, and shared KPIs pave the path to alignment. It’s best to start small and learn from mistakes as you refine your strategies.

Strategies to Strengthen Distributor Collaboration

The strategies below outline how procurement and commercial leaders can work in tandem to foster more agile, collaborative, and impactful distributor relationships

• Building Trust: Transparency is vital. One way to build trust with partners is by highlighting the benefits of collaboration through shared success stories. This not only demonstrates the value of trust but also encourages ongoing cooperation.

• Tailoring Incentives: Different industries require nuanced approaches. For example, while consumer businesses may prioritize promotional efficiency, healthcare requires robust forecasting accuracy and transparency in metrics.

• Designing Collaborative Strategies: Effective partnerships emerge when organizations translate opportunities into actionable plans. For example, leveraging joint promotions with distributors or aligning data-sharing goals creates mutual benefits.

Putting Processes and People First

Despite significant strides in technology adoption, procurement and commercial teams shouldn’t rely solely on advanced systems and new tech to solve alignment issues. Organizational transformation begins with clear communication, alignment of interests, and transparency—even before incorporating sophisticated tools like supply chain software or business intelligence platforms.

Four Principles for Driving Change

1. Start small: Implementing change in partnerships and team alignment doesn’t need to start at full scale. Begin with initiatives that are manageable, trackable, and visible to stakeholders.

2. Learn and adapt: Mistakes should be treated as learning opportunities. Successful alignment requires an iterative approach where teams refine their strategies as they progress.

3. Prioritize people over tools: Especially when aligning sales and procurement teams, the key lies not in the tools employed but in communication and shared understanding. Trust, collaboration, and coaching take precedence over technical solutions.

4. Change management: Change is always disruptive, but a focus on transparency and communication can smooth transitions. Establishing people as relationship owners ensures accountability and continuity during periods of transformation.

Building Collaborative Business Models

From internal alignment to external partnerships, the key to success for procurement and commercial teams lies in fostering trust, agility, and shared objectives. The discussion served as a reminder that true collaboration goes beyond pricing negotiations—it involves creating a joint strategy where all stakeholders benefit equally. Whether managing relationships with distributors or demanding customers, the pathway to success involves transparency, alignment, and consistency.

As procurement and commercial teams look to the future, they must balance operational precision, value creation, and relationship-building as their north star. By aligning processes, prioritizing people, and designing collaborative strategies, businesses can overcome challenges and unlock new opportunities for growth.

Still curious? Catch up on more Key Highlights from Catalyze 2025.