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Why procurement is no longer a back-office function
Moglix founder Rahul Garg on the UAE’s growing role in global supply chains and what the next decade looks like
- PUBLISHED: Fri 30 Jan 2026, 9:00 AM
- By:
- Kushmita Bose
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For most of its history, procurement lived in the background of corporate decision-making. Its success was measured quietly — lower costs, reliable suppliers, fewer disruptions. But the last five years have changed that calculus. Supply shocks, geopolitical uncertainty and shifting trade routes have pushed procurement out of the shadows and into the boardroom.
Speaking in Dubai at an exclusive Dubai Roundtable recently, Rahul Garg, Founder and CEO of Moglix, argued that this shift is structural rather than cyclical. “Procurement is no longer just about buying efficiently,” he said. “It has become central to how companies think about resilience, growth and competitiveness.”
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Moglix, an Asia-based B2B commerce company focused on industrial procurement, has spent the past decade building technology around that premise. As the company marks 10 years globally and five years in the UAE, Garg says the Emirates has played an outsized role in shaping Moglix’s global outlook.
The UAE as a Supply-Chain Pivot
Moglix’s entry into the UAE five years ago marked its first expansion outside Asia. Garg describes the move as intentional and formative.
“This was our first international market, and it fundamentally changed how we think about operating across borders,” he said.
That learning came at a moment when global supply chains were undergoing structural change. The UAE’s geographic position between Asia, Europe, and Africa — combined with sustained investment in ports, logistics, and digital infrastructure — has increasingly positioned the country as a global trade conduit rather than a regional hub.
“Today, the UAE plays a much larger role in how global supply chains are routed and managed,” Garg noted. “For us, it has evolved into a base for thinking about international expansion, not just regional growth.”
From Relationship-Led to System-Driven Procurement
Procurement in the Middle East has traditionally been relationship-led, a dynamic Garg sees as a strength rather than a limitation.
“Relationships matter deeply in this region, and they always will,” he said. “The challenge is not relationships, it’s the lack of visibility and structure around them.”
Many enterprises still manage indirect procurement through fragmented systems, relying on emails, spreadsheets, and manual approvals across hundreds of suppliers. The result is limited transparency and increased operational risk.
Moglix’s platform brings supplier discovery, sourcing, order management, and payments into a single digital layer. “One platform, one invoice, one consolidated view of the supply chain,” Garg said. “That alone changes how organisations make decisions.”
Operationally, this translates into faster approvals, stronger compliance, and tighter spend control. While outcomes vary by sector and maturity, Garg notes that enterprises typically see meaningful efficiency improvements alongside greater predictability — a critical advantage in volatile markets.
Why Procurement Technology Lagged and Why That’s Changing
Despite its scale and complexity, procurement has historically lagged behind other enterprise functions in technology adoption.
“In our personal lives, we use AI every day,” Garg said. “But in procurement, digital intelligence is still relatively early.”
Moglix has focused on applying data science and machine learning to areas long driven by manual processes. Today, AI supports demand forecasting, supplier risk assessment, and anomaly detection across procurement workflows.
The next phase, Garg says, lies in more advanced AI-driven decision support — including bid analysis, supplier profiling, and negotiation support. “For large organisations, this isn’t about automation alone,” he said. “It’s about better governance, faster insight, and more informed decision-making.”
The UAE’s national focus on digital transformation and artificial intelligence has accelerated enterprise readiness. “There is a strong appetite here to adopt technology at scale — not experimentally, but operationally,” Garg added.
Cost Control Versus Value Creation
For procurement leaders, the perceived tension between cost control and value creation is increasingly outdated.
“When you focus only on unit price, you miss the total picture,” Garg said. “Data allows organisations to understand total cost of ownership — including risk, reliability, and long-term value.”
This shift aligns with the UAE’s broader industrial and localisation initiatives, including Operation 300bn and Make it in the Emirates. Digitised procurement enables organisations to support local suppliers, improve ESG compliance, and reduce waste through better visibility and accountability.
“Digitisation creates transparency,” Garg said. “And transparency leads to better outcomes — commercially and strategically.”
What the Next Decade Looks Like
By the end of the decade, Garg expects procurement to look fundamentally different. Routine transactions will be automated. Sustainability and resilience metrics will sit alongside financial KPIs. Decision-making will increasingly be proactive rather than reactive.
“The procurement leader of the future won’t just manage spend,” he said. “They will shape strategy.”
In a more fragmented global economy, procurement will act as the connective tissue between growth, localisation, and resilience. For Garg, the UAE is well positioned to play a central role in that evolution.
“This is a market where vision is matched by execution,” he said. “That combination is rare — and it’s why the UAE will remain a key reference point for how global procurement evolves.”
As a passionate storyteller and content writer, Kushmita Bose loves weaving narratives that inform, inspire, and entertain. Whether she's unraveling tech revolutions, dissecting industry reports, or bringing a brand’s journey to life, Kushmita thrives on transforming ideas into captivating stories. When she’s not busy crafting content, you’ll probably find her daydreaming about her next travel adventure.