Rethinking Procurement Operating Models: Why Orchestration Is the Missing Link

Procurement operating models are undergoing a significant transformation. What was once a linear, siloed function focused on compliance and cost control is now being reimagined as a strategic business partner. The catalyst behind this shift? Procurement orchestration.

In a recent AOP Live webinar from Art of Procurement, Shachi Rai Gupta (VP of Strategy at ORO Labs) and Matt Kapedia (Head of Enterprise Solutions at ORO Labs) explored how organizations are modernizing their procurement operating models by embedding orchestration to drive agility, intelligence, and enterprise-wide alignment.

What Is a Procurement Operating Model?

A procurement operating model defines how procurement delivers value to the organization. It includes the structure, processes, people, and technologies used to manage spend, engage stakeholders, and collaborate with suppliers.

Traditional operating models have focused heavily on control, policy enforcement, and transactional efficiency. But in today’s complex environment—marked by digital disruption, volatile markets, and increasing regulatory scrutiny—these models are no longer sufficient.

Enter orchestration.

Why Traditional Procurement Operating Models Fall Short

Most procurement functions have invested heavily in automation and source-to-pay (S2P) platforms. While this has improved operational efficiency, it hasn’t solved core challenges like fragmented systems, poor user experiences, and a lack of real-time visibility.

Gupta explained it best during the webinar: “We were not meant to be process enforcers. Procurement was always meant to be a strategic, intelligent partner. But we need the right operating model to get there.”

That means moving beyond siloed tools and disjointed workflows to a cohesive, end-to-end operating model powered by orchestration.

How Orchestration Redefines the Procurement Operating Model

Procurement orchestration introduces a flexible, connected layer that sits across people, processes, and systems. It enables procurement to standardize workflows, guide users to the right channels, and integrate decision intelligence at every step.

Kapedia noted that orchestration is most impactful when implemented as part of a broader operating model shift. Rather than simply digitizing existing workflows, orchestration helps teams redesign how procurement engages with the business—from intake through sourcing, contracting, supplier onboarding, and risk management.

Here are four key ways orchestration enhances procurement operating models:

1. Unified Procurement Intake

Most organizations struggle with fragmented intake processes, leading to maverick spend, missed savings, and user frustration. Orchestration creates a single, intelligent front door where employees can request what they need—without needing to understand backend systems or policies. This makes procurement more accessible and efficient from the start.

2. Cross-Functional Workflow Automation

Modern procurement spans legal, finance, IT, and other stakeholders. Orchestration enables seamless coordination among these functions, automating tasks such as contract reviews, risk checks, and compliance validations. This reduces cycle times and ensures that every step is handled correctly and consistently.

3. Embedded Decision Intelligence

Gupta emphasized the concept of decision intelligence—the ability to guide the business with data-driven insights and smart recommendations. Orchestration platforms can evaluate multiple dimensions (e.g., supplier risk, sustainability, price benchmarks) and surface optimal paths forward, enhancing both speed and quality of decision-making.

4. Dynamic Adaptability

Today’s procurement teams need to respond to sudden shifts—from supply chain disruptions to geopolitical events. Orchestration provides the agility to pivot quickly by enabling dynamic workflows, scenario modeling, and AI-driven insights—all critical components of a modern operating model.

A New Procurement Identity: From Gatekeeper to Guide

One of the most compelling insights from the webinar was how orchestration is changing procurement’s identity within the business. Instead of being seen as a bottleneck, procurement becomes a guide—one that empowers the business with transparency, optionality, and support.

This shift is ultimately about trust. As Kapadia shared, the orchestration layer makes it easier to embed AI agents into workflows in a way that is both secure and scalable. This allows procurement teams to offload manual tasks and focus on higher-value activities like category strategy, supplier innovation, and risk mitigation.

Building the Future Procurement Operating Model

The next-generation procurement operating model is:

• Connected. Linking disparate tools and data into unified, streamlined workflows.

• Configurable. Supporting low-code and no-code customization without IT dependencies.

• Collaborative. Facilitating engagement across departments and external partners.

• Cognitive. Leveraging AI for predictive insights, automation, and decision support.

• Compliant. Ensuring governance and control while empowering user autonomy.

Orchestration is the foundation that enables this modern architecture, enabling organizations to scale, adapt, and innovate without overhauling existing investments.

Procurement operating models must evolve to meet the demands of a fast-changing world. Orchestration offers a powerful approach to modernize these models—delivering better user experiences, faster cycle times, and more strategic impact.

“The destination isn’t automation—it’s intelligence,” according to Gupta.  And with orchestration, procurement is finally on the path to becoming the strategic powerhouse it was always meant to be.