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Conaprole

Leticia Birriel, Head of Acquisitions for Logistics and Supplies area

Procurement in Mercosur: From Tactical Function to Strategic Partner

Leticia Birriel

Leticia Birriel

Mercosur Sourcing Advisor

Leticia Birriel is an international relations professional with experience in global operations, supply chain, and cross-border coordination. She has worked with CONAPROLE, demonstrating strong leadership, governance, and expertise in managing multicountry business environments.

In Mercosur countries, I believe a gradual but profound transformation is taking place. Traditionally focused on cost reduction, Procurement is now beginning to position itself as a key player in value creation and business resilience.

This shift is clearly the result of how companies in the region navigate constant challenges such as economic volatility, inflation, currency fluctuations, and, in some cases, import restrictions. These factors force organizations to rethink their sourcing strategies on a daily basis, making decision-making increasingly complex.

Additionally, we cannot overlook the strong dependence on international suppliers, particularly in industries where local production is limited. The current global context, combined with Mercosur-specific logistical challenges—such as high transportation costs, uneven infrastructure, and variable delivery times— demands a much more strategic approach to Procurement.

Procurement as a Driver of Value

In my experience, the focus is no longer solely on price negotiation. Instead, Procurement is taking on a more comprehensive role where risk management, supplier diversification and long-term planning become essential. As a result, Procurement now directly impacts the competitiveness of organizations.

Procurement must move beyond being a cost center to becoming a true driver of value.

We should also consider the impact of digital transformation. Digitalization, automation, and artificial intelligence are enabling better processes and more informed decision-making through improved access to data. However, it is important to acknowledge that the adoption of these technologies across Mercosur remains uneven, representing both a challenge and an opportunity for companies seeking to differentiate themselves.

Another relevant aspect is sustainability. While still in a developmental stage in Mercosur, there is a growing shift toward incorporating environmental and social criteria into supplier selection. In this regard, Procurement must play a key role in promoting responsible practices across the supply chain.

To fully evolve, Procurement must integrate with other business areas, understand their objectives, and participate in decision-making from early stages. This requires the development of new capabilities, including strategic thinking, data analysis, and more sophisticated negotiation skills.

The evolution of Procurement in Mercosur is not uniform. While some organizations still rely on traditional approaches, the current environment is accelerating change and creating a unique opportunity to reposition the function.

Ultimately, in Mercosur, Procurement must move beyond being a cost center to becoming a true driver of value. Organizations that proactively embrace this shift will be better prepared to navigate uncertainty and compete in an increasingly demanding environment.  

The articles from these contributors are based on their personal expertise and viewpoints, and do not necessarily reflect the opinions of their employers or affiliated organizations.