#BizTrends2025: Future-focused procurement – embracing change and empowering growth
The role of procurement professionals is increasingly that of strategic advisors, fostering innovation, sustainability and collaboration. Skills and knowledge to capitalise on technology and navigate complex geopolitics are critical.
These are some of the key trends that successful procurement professionals will leverage in 2025 for business success and competitive advantage:
Collaboration
One of the most significant trends to emerge in procurement in recent years, which will be prioritised by more organisations in 2025, is collaboration. Procurement leaders are increasingly recognising that collaboration, not working in isolation, is key to unlocking true value.
Leveraging professional networks, engaging in benchmarking and sharing knowledge across the industry are essential for driving innovation, improving processes and staying ahead in a rapidly changing landscape.
Long-term, collaborative partnerships with suppliers are being prioritised. This includes shared goals around innovation, cost efficiency and risk management.
Technology and data
Skills in data analytics and the ability to adapt to evolving technologies are becoming essential for procurement professionals who must harness data to make informed decisions, enhance efficiency and mitigate risks.
Procurement teams must develop skills to analyse big data effectively. Insights from data analytics help predict demand, manage supplier risks and optimise costs.
In 2025, we will see even more use of generative AI and predictive analytics in procurement. Organisations will move beyond AI adoption to the true integration of AI tools into procurement processes.
Technology will enable faster data analysis, better decision-making and automation of repetitive tasks. This includes AI-driven supplier evaluations and risk assessments.
Digital transformation
The digital revolution will gain momentum in procurement and supply chains in 2025. Digital tools like advanced analytics, Internet of Things and blockchain will enhance supply chains and assist procurement professionals by offering real-time visibility, improved cost tracking and better management of supply risks.
Technologies like blockchain are being used to improve transparency and traceability across supply chains, particularly for ethical and sustainable sourcing. This is critical for building consumer trust and meeting regulatory requirements. In 2025, we will see more companies leveraging digital tools to optimise procurement outcomes.
Communication skills
While technology and AI are bringing benefits to the procurement field, they will not replace procurement professionals, and human elements like communication will be more important than ever. Communication skills are critical to articulate value, build trust and strengthen partnerships within and beyond the organisation.
ESG and sustainability
The world is undergoing a profound shift with the growing recognition of the impact that virtually all products and services have on the planet and on the quality of lives in our communities.
Environmental, social and governance (ESG) programmes are not just a “nice to have”, and they have moved beyond just compliance. Companies that fail to see environmental, social and governance (ESG) issues will fail.
They risk losing investors and customers if ESG strategy is not effectively incorporated into their decisions - including procurement. Sustainable procurement practices and policies will top the agendas of the top businesses in 2025. Procurement leaders will choose their suppliers based on their ESG credentials.
This approach not only reduces environmental impact but also mitigates risks from unethical practices.
Carbon reduction is also a growing priority for procurement teams. They are embracing circular economy principles as they strive to reduce waste, save costs, and drive innovation and long-term sustainability.
Today’s complex business environment and the ongoing evolution of procurement, which includes the rise of technology, mean that demand for a new breed of procurement professionals will be even greater in 2025.
Organisations need procurement professionals with the necessary technological skills to effectively manage and utilise the advanced technologies that are now integral to procurement operations, and to navigate the growing digital procurement landscape. Skills development and attracting the right talent will be a priority.
At Smart Procurement, for example, we empower individuals and organisations, enabling them to connect, share and grow. We aim to enable a more resilient and innovative procurement ecosystem, fostering collaboration and learning, and driving conversations that shape the future of procurement.
