Adapting to Change: How Procurement is Innovating Through Challenges in 2025

Embracing Innovation: Procurement in 2025

The landscape of procurement is undergoing a significant transformation in light of global disruptions and pressures. According to a new report by Ivalua, a leader in spend management, and Procurious, named "Next Level Procurement: Embracing GenAI and Whatever Comes Next," procurement leaders are discovering the necessity for adaptability, strategic focus, and technological integration to navigate a challenging environment.

The report, which surveyed 137 procurement professionals, reveals a landscape where traditional cost-cutting measures are increasingly insufficient. Now, procurement teams are expected to adopt roles that prioritize strategy and value creation.

Global Challenges Shaping Procurement Strategy

As the industry faces ongoing geopolitical tensions, escalating costs, and economic instability, many procurement leaders see the expansion of global conflicts impacting supply chains. Notably, 61% of survey respondents are concerned about conflict escalation. Additionally, 55% highlight the need to reassess supplier strategies due to U.S. tariffs, while another 50% anticipate changes in the global regulatory environment following the U.S. elections. Moreover, an overwhelming 81% predict another unpredictable event, emphasizing the constant uncertainty in today’s procurement landscape.

Alex Saric, the Chief Marketing Officer at Ivalua, stated, “Procurement has changed dramatically in recent years. It’s a constant juggling act with global disruptions, rising costs, and unpredictable trade policies. Next-level procurement involves empowering teams to rapidly adapt their spending and supplier relationships in response to evolving conditions.”

The New Role of Procurement Teams

Despite cost reduction still being a paramount goal for many organizations, procurement's role is expanding. The report finds that 77% of participants expect a greater focus on strategic decision-making and value creation in 2025. Additionally, over 54% anticipate enhanced responsibilities in sustainability and ethical sourcing. It’s also notable that half of the procurement professionals surveyed plan to invest more time in collaboration with suppliers, underscoring a shift towards partnership over transactional relationships.

Technological Leverage in Complex Times

A substantial portion, 52%, of procurement teams foresee significant automation in their tasks through advanced technologies, refocusing efforts on high-value activities. Generative AI is being heralded as a significant advantage, with 63% recognizing its potential to boost efficiency. Currently, 45% of teams are employing generative AI tools to enhance processes like spend analysis, sourcing, and contract management with nearly half believing that tech will dictate their future decision-making processes.

Saric adds, “More teams are leveraging generative AI to automate everyday tasks, improve decision-making, and increase productivity. The rapid development of agentic AI promises to enhance its business impact moving forward.”

Challenges and the Need for Adaptability

However, the procurement sector is not without its challenges. The report identifies inflation (75%), sustainability regulations (63%), and a shortage of skilled talent (58%) as top concerns for procurement professionals. In response to these hurdles, 74% have revamped their strategies to ensure they remain resilient in a dynamic environment, demonstrating a clear need for flexibility.

The findings reflect a crucial pivot in the procurement sector, where the need for innovation and strategic foresight is becoming more relevant than ever. As organizations adjust to new realities, procurement must continue evolving, embracing the opportunities that technology and collaboration present.

For further details about the report, visit the Ivalua website.

About Ivalua

Ivalua specializes in cloud-based spend management, offering a unified Source-to-Pay platform that empowers organizations to manage various categories of spending efficiently and sustainably. Customers include a wide range of top brands globally, with Ivalua recognized as a leader by Gartner and other analysts. Discover more at www.ivalua.com.

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