The Changing Role of Procurement in Shipping and Energy
Rick Ackermann, Head of Procurement, BW LPG
Rick Ackermann, Head of Procurement, BW LPG
Rick Ackermann is a procurement leader with over 30 years of international experience across shipping, automotive and project industries. He specializes in strategic sourcing, global procurement, supplier management and sustainable procurement, driving operational excellence, cost optimization and value creation through effective procurement leadership and innovation.
Procurement in shipping and energy has moved well beyond being a back-office function focused on price. Today, it plays a central role in managing volatility, securing supply, and supporting long-term competitiveness.
The environment has changed fundamentally. Geopolitical tensions, regulatory pressure, and decarbonization targets are reshaping both trade flows and energy markets. Supply chains are no longer optimized purely for cost-they are being redesigned around resilience and compliance.
At the same time, Procurement is becoming more integrated with the core business. In practice, many of the biggest execution risks now sit at the intersection of Procurement, engineering, and operations. That requires tighter alignment and faster decision-making across functions.
In simple terms, three shifts stand out:
• from transactional buying to strategic sourcing
• from global optimization to regional and multi-sourcing strategies
• from focusing on price to focusing on total value-cost, risk, carbon, and performance
• Procurement is no longer just about cost control. It is about enabling value.
Leadership Lessons That Matter
Over time, one lesson has become very clear: Procurement is ultimately about people, not contracts.
Strong supplier relationships are what turn theoretical savings into real performance. In volatile markets, the most valuable supplier isn’t the cheapest one-it’s the one that delivers when things go wrong, stays responsive, and works with you to solve problems.
• A few principles have consistently guided my approach:
• keep things simple and clear; complexity creates risk
• focus on trust-long-term partnerships outperform constant renegotiation
• ensure alignment-Procurement must be fully connected to business priorities
The biggest mistake I see is treating Procurement as a separate function. The best results come when Procurement, technical teams, and finance operate as one.
Balancing Cost, Risk and Resilience
Balancing cost, risk, and resilience is no longer a trade-off; it is something you actively design into your sourcing strategy.
For years, the focus was on driving cost down. That approach proved fragile during recent disruptions. Today, leading organizations accept that a slightly higher cost base can be justified if it reduces exposure and protects continuity.
In practice, that means:
• segmenting spend properly; different categories require different strategies
• avoiding dependency through multi-sourcing
• focusing on total cost, not just purchase price
• building flexibility into contracts to deal with volatility
There is also a mindset shift. Pushing suppliers too hard on price often leads to problems later-whether it’s quality, reliability, or service levels.
The real goal is not the lowest cost. It is a predictable, reliable, and competitive cost over time.
Trends Shaping the Future of Procurement
Several trends are clearly shaping the direction of Procurement:
• Digital and AI adoption is improving visibility, forecasting, and decision speed
• Resilience and regionalization are driving more diversified supply networks
Procurement is no longer just about buying-it is about shaping how organizations compete and perform.
• ESG and decarbonization are becoming embedded in sourcing decisions
• Supplier collaboration is moving beyond contracts into joint problem-solving
• Strategic positioning is giving Procurement a stronger voice at executive level
Taken together, these trends are pushing Procurement towards a more data-driven and forward-looking role.
Advice for Future Procurement Leaders
For those building a career in Procurement, the fundamentals still matter, but expectations are changing fast.
Focus on:
• mastering core skills like negotiation, contracts, and cost structures
• developing real commercial understanding of how the business creates value
• investing in relationships across suppliers and stakeholders
• becoming comfortable with data, analytics, and digital tools
• thinking long-term-Procurement is about continuity, not just short-term gains
Most importantly, recognize how much the role has evolved. Procurement is no longer just about buying-it is about shaping how organizations compete and perform.
If you want to succeed, you need to look beyond price and focus on value, risk, and impact.
