In Nibble's webinar this week, 'Build It or Buy It: The Procurement Dilemma', Janet Lung-Standing – former CPO at Johnson Matthey and veteran of Mars and Danone – joined Nibble CEO Rosie Bailey to tackle this very issue. Drawing on decades of procurement and supply-chain leadership, Janet explored the strategic, financial and operational factors that separate smart decisions from costly missteps.
Here, we'll summarize three key takeaways for procurement leaders debating their next build or buy in the AI space.
Every build-versus-buy decision begins with strategy. Janet reminded the audience that AI is no different from any other capital investment: “You must own your vision of the technical ecosystem,” she said. That means defining the outcomes you need before you compare vendors or consider internal development.
Strategic alignment starts at the top. Janet pointed to GSK as a model, noting that its CEO sits on Microsoft’s board and drives an AI agenda across the company. When leadership commits at that level, procurement teams can confidently choose whether a home-grown tool or an external partner best supports the enterprise’s long-term goals.
Alignment also requires clarity on core competencies. If the capability is truly unique and confidential—think proprietary drug-discovery models in biotech—building in-house may be justified. But for most procurement functions, the smarter path is to buy best-in-class components and integrate them into a broader ecosystem.
Time-to-value is critical. “Speed to delivering benefits comes down to how well the problem is defined,” Janet explained. External suppliers already have data pipelines, trained models, and infrastructure in place, allowing procurement teams to leapfrog months of development and reach ROI faster.
Cost considerations reinforce the argument. Building in-house often hides long-term expenses—training, infrastructure, maintenance—that accumulate as “technical debt.” What looks innovative today can become a stranded asset tomorrow, especially as AI platforms evolve weekly.
Buying a subscription-based solution, on the other hand, creates predictable budgets and the flexibility to switch vendors if a better fit emerges. It also avoids the challenge of scaling an internal minimum viable product across multiple categories or geographies.
That said, Janet acknowledged limited situations where building makes sense: tightly scoped tools like a data-cleaning agent, or small pilots designed to “fail fast” and surface insights before a larger investment.
Whether you build or buy, technology is only as good as the data and people behind it. Janet stressed that procurement leaders must “own the accountability” for data preparation, even if the work is outsourced. Without clean, consistent inputs, the most sophisticated AI will underperform.
Change management is equally vital. New tools can unsettle teams accustomed to familiar processes. Clear communication, early involvement, and visible leadership support reduce resistance and help staff see AI as an opportunity rather than a threat.
Rosie added that progress can feel slow at first because early milestones—like cleaning legacy data or standardizing access—may not look like innovation. But those foundational steps enable the exponential gains that follow.
The consensus from the webinar was clear: for most procurement organizations, buying is the practical default. External partners bring domain expertise and keep pace with rapid technological change, while freeing internal teams to focus on strategy and supplier relationships.
Yet “buy” doesn’t mean passive. Leaders should interrogate potential suppliers: ask how their AI models make decisions, request audit trails, and demand transparency on data security. A strong partner will welcome those questions.
As Janet concluded, "Be prepared to fail fast. Start small, but think big. It's not until you start that you'll know what's possible."
For procurement leaders, that means setting a bold AI vision, investing in data discipline and change management, and choosing partners who can scale with you. Whether you build or buy, the real goal is the same: resilient, insight-driven procurement that protects margins and positions your business for the future.
Watch the full webinar recording here. You can find out more from Nibble's experience negotiating 100,000 times a month here.
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