Introduction
Procurement leaders are increasingly faced with new technologies and priorities reshaping the way that organizations manage their supply chains. In 2025, several emerging trends will define the procurement landscape. To remain competitive, business must understand and adapt to these changes. Below, we highlight four key trends shaping procurement for the coming year.
1.
AI and Analytics Take Center Stage
The use of artificial intelligence (AI) in procurement is rapidly expanding, offering a potential competitive edge. Procurement leaders are focused on unlocking AI and Analytics capabilities to optimize processes, release capacity, and drive better decision-making. This includes leveraging AI for tasks such as:
Sourcing Optimization
Contract Analytics
Guided Buying
Analytical Insights for Category Management
Process Automation, including Supplier Onboarding
2.
Orchestrating An Improved Procurement experience
As procurement evolves, one of the top emerging trends for 2025 is the widespread adoption of orchestration capabilities and solutions. These solutions offer the ability to streamline and guide procurement requests from across the organization, ensuring that every user interaction follows the company's established buying rules and compliance standards, while simplifying the business user's experience.
3.
Next Frontier in Category Value Creation
A key focus for procurement leaders is maximizing value creation through strategic procurement practices. This fundamental procurement priority has existed for years and requires more advanced and precise techniques to drive value creation. This involves:
Expanding the use of Category Management - including commercial, process, and system levers
Implementing advances sourcing capabilities to address more spend with more mature sourcing practices
Automation to address tail spend management
Adopting category-centric platforms in high impact categories with orchestrated experience
4.
Supporting an Expanded Procurement Mandate
Procurement's role is broadening beyond traditional and operational functions. Procurement leaders are tasked with enabling this expanded mandate by:
Strengthening Third-Party Risk Management (TPRM) programs to mitigate potential risks associated with suppliers
Improving supply resilience to address potential disruptions and ensure business continuity
Exploring the convergence of direct and indirect procurement to streamline processes and optimize resources
Developing a more agile and adaptable operating model for category managers to navigate the increasingly complex procurement landscape
CONCLUSION
By embracing these trends and adapting their strategies, procurement leaders can position their organizations for success in 2025 and beyond. Reach out to our team today to get ahead.
