Same Title, Different Game: Procurement in Servicing Firms vs. IOCs

Procurement isn’t the same everywhere. It may carry the same job title across organizations, but in reality, it operates in completely different worlds depending on where you sit especially when you compare servicing firms and International Oil Companies (IOCs). At the beginning of my procurement journey, I assumed the experience was universal. To me, procurement was procurement, same principles, same expectations, same execution. That perception started to shift when I began engaging with professionals working in IOCs. The way they described their processes felt almost foreign compared to what I was doing daily. Everything seemed more structured, more layered, and far removed from the fast-paced, hands-on environment I was used to. At the time, I convinced myself that the gap was simply a matter of experience that maybe I just needed more time to grow into that level. About a year into the role, I had a moment that completely changed my perspective. Our team needed to expand, and I was fortunate to be part of the interview panel. We reviewed CVs that looked incredibly impressive on paper, filled with years of experience and strong company names. Naturally, I expected those candidates to be far ahead. But as the interviews progressed, I found myself surprised not because they lacked intelligence, but because many of them weren’t familiar with half of the things I handled regularly in my role. That was when it became clear to me that procurement in servicing firms and procurement in IOCs are not just slightly different, they are fundamentally distinct. Working in a servicing firm feels like operating in the engine room. The work is highly reactive and driven by projects, often tied to urgent RFQs and immediate client needs. Every decision revolves around speed and cost efficiency because margins are tight and there is very little room for error. You’re constantly engaging OEMs, distributors, and sometimes trading houses, trying to secure the best possible deal under intense time pressure. The challenges come from every angle short lead time, aggressive pricing expectations, logistics coordination, forex instability, and the constant need to expedite processes just to stay on track. At the core of it all is a simple but demanding objective: deliver exactly what the client needs, on time, at the most competitive cost, without compromising quality. In contrast, procurement in IOCs operates in a much more structured and policy-driven environment. The work is proactive rather than reactive, guided by established processes and strict compliance frameworks. Sourcing decisions are typically based on approved vendor lists and long-term agreements, with only prequalified OEMs and distributors involved. The pace is different, and so are the challenges. Instead of dealing with constant urgency, the pressure often comes from navigating bureaucracy, managing long approval cycles, and ensuring that every step aligns with regulatory requirements. The difference becomes even more apparent in the day-to-day reality. Procurement in servicing firms often feels like doing the heavy lifting. You are chasing vendors for quotes under tight deadlines, negotiating aggressively because every dollar directly impacts margins, and managing the entire chain, from sourcing to freight, customs clearance, and final delivery. At the same time, you’re handling forex constraints, internal approvals, and the expectations of both your clients, who are often IOCs, and your internal team. It’s intense, demanding, and requires you to stay constantly switched on. Meanwhile, procurement in IOCs is more about coordination and oversight. The focus is on issuing tenders, reviewing bids, ensuring compliance, and managing contracts. There is less firefighting and more structure, less scrambling and more orchestration. Interestingly, despite the intensity of the work in servicing firms, procurement professionals in IOCs often earn more. It almost feels like they are the conductors of the orchestra, directing the flow and setting the pace, while those in servicing firms are the ones playing all the instruments, making sure everything comes together under pressure. But there is a powerful advantage to starting in a servicing firm. It forces you to develop resilience, adaptability, and a deep understanding of the market much faster than you might in a more structured environment. You learn procurement in its rawest and most demanding form, where decisions have immediate consequences and execution is everything. By the time you transition into a more structured role, you carry a level of experience that allows you to stand out naturally. Looking back, my journey in procurement within servicing firms has been intense and, at times, challenging, but also incredibly rewarding. It has pushed me to grow in ways I didn’t expect and given me a perspective I now value deeply. And honestly, I wouldn’t trade the experience for anything. By Ifeanyi Nwandem Procurement Manager, FESL