As head of procurement, I lead Urenco’s global procurement function, supporting all operations worldwide through category management, procurement for major projects and capital investments, energy procurement, governance and compliance, and sustainability. Our team manages procurement in a hybrid structure, centrally and locally deployed, with staff embedded across global operations. We aim to think globally and act locally. We’ve grown to around 70 team members in the last couple of years because of some significant shifts in our business strategy and we anticipate continuing growth.
At Urenco, we enrich uranium for civil nuclear power, which gives us a unique position in supporting the global energy transition. Our medical products contribute to around 2 million nuclear cancer treatments annually — which means we have a critical mission as an organization. Nuclear energy provides clean baseload power essential in the energy transition to clean, secure power for all. Our procurement strategy is tightly aligned with Urenco’s core mission. Urenco is a highly trusted supplier to the civil nuclear power industry so, for example, procurement focuses a key pillar of our strategy on risk reduction to protect operations from any supply chain disruption. Furthermore, for nuclear to contribute to a greener future, our supply chain must also reduce its carbon footprint, which we’re actively working toward. We focus on decarbonizing the supply chain and ensuring our procurement strategy aligns with our company’s safety commitments.
That’s right. Globally, there’s a strong case for nuclear energy as the key part of a renewable mix. We’re seeing significant growth in demand because of the increasing importance of nuclear energy. Urenco is heavily investing in facilities in the Netherlands, the U.S., and the U.K., where we’re building the first advanced nuclear fuel enrichment facility. This demand impacts procurement considerably, especially as we balance operational efficiency and effectiveness with compliance in a highly regulated industry. It’s a complex but highly motivating mission.
Because we truly believe in Urenco’s mission to deliver a sustainable energy source, our procurement team members are intrinsically motivated and committed to deliver this. Our procurement function is designed to protect the organization, particularly around capital investments and sustainability. We align procurement activities with the organization’s five key strategic directions, setting and tracking specific KPIs across safety, security, value, and carbon reduction, among others, to support our organization’s overall strategy. Everyone on our team has a transparent set of objectives, fully aligned with our corporate strategy. To ensure alignment and buy-in, we provide complete transparency regarding every team member’s goals. Everyone on the team knows my personal KPIs, they know each other’s, and they know how each person’s KPIs align with our functional and company objectives. This transparency helps ensure we’re all working collaboratively to help our business achieve its goals.
The most critical traits are strategic alignment, autonomy and curiosity. We give team members the autonomy to manage their categories, but they must also be deeply curious — constantly evaluating changes in business strategy, market dynamics and other factors. Traditionally, procurement professionals were not hired to be curious. Their charge was rigor and process compliance. But today, curiosity drives high performance, pushing the team to continuously question and adapt to shifts in our industry; and identifying ways to add value is a core competence. A questioning attitude is something we look for when hiring new team members.
We have ambitious goals: net-zero emissions by 2030 for Scopes 1 and 2 and a 30% reduction in Scope 3 emissions, with a goal to be fully net-zero by 2040, a decade before the Paris climate agreement target. Right now, we’re establishing a robust baseline for carbon emissions reporting and selecting like-minded suppliers who share our vision around net zero. Once we’ve laid that foundation, we’ll work closely with suppliers on their carbon reduction. Suppliers generally fall into three categories: committed, skeptical and converted. Committed suppliers are integral to our net zero vision, and in many ways, some are ahead of us, and we’re learning from them. Converted suppliers have realized that carbon reduction is the right thing to do and can lead to efficiency gains, competitive advantage and profitability, making them strong advocates for sustainability initiatives. Lastly, some suppliers remain skeptical and need our support to understand how to progress and the benefits this can bring. We’re actively looking to recruit and train procurement team members to act as carbon reduction advisors to support skeptical suppliers in their sustainability efforts.
AI is especially promising for us. Poor data quality can hinder digital transformations, and AI has the potential to work with unstructured data to overcome this limitation, allowing us to make better use of our existing systems and tools. From contract management, risk identification, and risk prediction to automation, AI could unlock immense value across our procurement processes, enhancing efficiency and resilience.
In short, increasing complexity. We’re operating in a more demanding regulatory and economic landscape, where unpredictability is the new normal. We must adapt to these pressures with agility, moving beyond traditional skills to handle the increased complexity, including AI, digital solutions and risk management skills. This requires a mindset shift within procurement functions to meet future demands.
Alignment with company strategy is paramount. Procurement must be tightly connected to the business’s strategic goals or risk missing the mark on value creation. If procurement doesn’t directly address the company’s core challenges, it’s missing an opportunity to become a true strategic partner. I’d advise peers to regularly reassess and ensure their procurement strategies are in lockstep with their organization’s objectives. We also need to break out of the traditional definition of value if we’re going to be a strategic partner. Value is not just delivering savings. At Urenco, the broadest definition of value is delivering on our commitment to the safety of the people who work here, to the people who come onto our sites, and to the communities that we serve.
About Urenco
Urenco is an international supplier of enrichment services and fuel cycle products to more than 50 customers in 19 countries. Operating in a pivotal area of the nuclear fuel supply chain for 50 years, Urenco facilitates zero carbon electricity generation for consumers around the world. Headquartered in the UK, Urenco’s global presence ensures diversity and security of supply for customers through enrichment facilities in Germany, the Netherlands, the UK and the USA. Using centrifuge technology designed and developed by Urenco, and through the expertise of our people, the Urenco Group provides safe, cost effective and reliable services; operating within a framework of high environmental, social and governance standards, complementing international safeguards. The Urenco Group is owned one third by the UK government, one third by the Dutch government, and the final third equally by two major German utilities, E.ON and RWE. Go to www.urenco.com for more information.