Written by Marijn Overvest | Reviewed by Sjoed Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

11 Procurement Trends Set to Dominate 2025: Be Prepared

Key takeaways

  • Procurement trends in 2025 will highlight the deep integration of AI into everyday operations, beyond just personal tasks
  • In 2025, the procurement workforce increasingly spans multiple generations—from Baby Boomers to Gen Z—revealing diverse expectations and contributions. Procurement teams should adjust to this.
  • In 2025, category management in procurement will take center stage while procurement teams still struggle to balance ESG goals with profit.
Procurement Trends 2025

In 2025, procurement will continue to experience significant shifts, which we’ve categorized into three key themes to help you visualize the major changes that lie ahead.

Theme 1: AI Transformation is the New Reality.

#1 From AI adoption to AI adaption
#2 A tipping point for procurement skills mismatch
#3 More time for the human side of procurement
#4 AI: overhyped or underestimated?

These trends will explore the crucial aspects that procurement professionals need to consider regarding how AI will reshape procurement. They will also address the pressing question of whether AI will continue to transform the field or if it’s merely a bubble set to burst by 2025.

Theme 2: Shifts in Procurement Roles.

#5 The Golden Age of the Silver Worker
#6 Young Talent Still Hesitates to Enter Procurement
#7 Procurement Takes the Lead Internally

This theme highlights the human aspect of procurement, examining the challenges of attracting younger talent to the field and the implications of an aging workforce in procurement.

Theme 3: Tactics for Procurement to Thrive.

#8 Shift From Cost-cutting to Value Creation
#9 Geopolitical Instability Shapes Risk Management
#10 Category Management Takes Center Stage
#11 Struggle to balance ESG Goals with Profit

These trends will delve into strategies businesses should adopt to succeed, placing a stronger emphasis on risk management and an increasing commitment to sustainability, driven by growing internal and external pressures.

These themes capture the changes that procurement professionals will experience as they navigate the ongoing changes in this era of technology and shifting priorities. Let’s now explore the trends we anticipate for 2025 and beyond.

Theme 1: AI Transformation is The New Reality 

Love it or hate it, AI is everywhere and continuously transforms many aspects of our lives, enhancing our productivity and efficiency. As major tech companies like Google, Meta, and Microsoft invest billions in the race to lead the AI revolution, almost every company has integrated some form of AI into their operations.

This transformation has led to a significant shift in many business processes, including procurement. This shift presents a challenge as companies strive for cost efficiency while procurement professionals face concerns about AI disruption and the complexities of navigating AI. As a result, we focus on three key procurement trends under this theme:

1. From AI adoption to AI adaption

In the last two years, AI has been used by many procurement professionals for personal tasks, such as answering questions, drafting documents, and other activities aimed at making daily life easier.

In 2025, however, AI will expand far beyond personal use and will become an integral part of procurement operations, thanks to the substantial benefits it offers. In fact, a Deloitte survey found that 94% of business executives believe AI will enhance their operations over the next five years. 

A recent Forbes Advisor survey reveals that 73% of businesses are either using or planning to implement AI-powered chatbots for instant messaging. Additionally, 61% are leveraging AI to optimize their emails, while 55% are using it to deliver personalized services like product recommendations.

These figures highlight the confidence many companies have in AI’s ability to enhance their operations. However, as AI continues to integrate more deeply into business processes, by 2025 we might see rising concerns, especially around data security and potential leaks.

Procurement teams that have adopted AI without fully understanding how to manage it effectively may reconsider their strategies, pushing for stricter measures to safeguard sensitive information.

From AI Adoption to AI Adaption
1. Impact of this trend

Procurement AI Software Growth Surges, Data Leak Concerns Follow

In 2025, more and more procurement teams will adopt AI-powered tools, marking a clear trend as major players like GEP and Zycus ramp up their investments in AI technologies.

With the launch of Merlin Assist and Merlin GenAI Power Apps, Zycus is empowering procurement teams to streamline traditionally manual and complex tasks, boosting efficiency while minimizing operational risks.

On the other hand, GEP has made a strategic move by acquiring OpusCapita, a leading e-invoicing and procurement solutions provider based in Helsinki, Finland. This acquisition allows GEP to combine OpusCapita’s strengths in the Nordic region, particularly in e-invoicing and AP automation, with GEP’s global AI-powered procurement platform, GEP SMART.

While AI adoption is accelerating, the “adaption” rate tells a different story, as concerns around data privacy and security are increasing.

Each interaction with generative AI leaves a digital footprint, raising the risk that sensitive information could be exposed or misused in AI model training. This presents a significant challenge, especially when proprietary data is involved.

A recent Cisco report highlights these concerns, noting that over 25% of companies have banned the use of generative AI tools altogether.

Additionally, 63% of respondents restricted the types of data employees could input into these systems, while 61% limited the AI tools that could be used. The primary worry is that employees might unknowingly leak confidential information to external platforms.

These privacy risks are already central to legal disputes, such as The New York Times’ lawsuit against OpenAI, which alleges that its articles were used without permission to train AI models.

As a result, privacy and data security have become top priorities for many companies, and there’s growing support for stronger legislation. Businesses now see investment in privacy safeguards as a necessity, with the potential benefits far outweighing the risks.

2. What actions should you take?

AI Implementation While Ensuring Data Privacy

To ensure a seamless adaption rate of AI in procurement while addressing concerns over data leakage, here are five key steps to help integrate AI while keeping your data secure.

The first step is to Encourage Safe AI Experimentation in Procurement. Companies must build a culture where procurement teams feel empowered to explore AI-driven solutions, all while ensuring strict compliance with data privacy regulations.

The second step is to Implement Comprehensive AI Training for Procurement Professionals. Procurement teams must be equipped with the skills and knowledge to use AI effectively. This training should focus on data security, responsible AI usage, and understanding potential risks. 

Additionally, businesses should also listen to employees’ concerns and provide the support, guidance, and resources they need to adapt successfully to AI.

The third step is to Develop a Clear AI Strategy Aligned with Procurement and Data Privacy Goals. Businesses should ensure that their AI strategy aligns with procurement objectives while addressing data privacy concerns. This includes creating policies that promote ethical AI use, with a focus on accountability, transparency, and responsible interactions. For this, you need to ask yourself a question. Does your business have a policy on how to use AI in Procurement?

Let’s look a great example is Salesforce Inc., which has developed an AI Acceptable Use Policy (AI AUP) to uphold ethical standards and protect its customers. Their AI AUP prohibits AI use for activities such as making legally binding decisions, political campaigns, and other harmful or deceptive practices. By regularly updating its policy, Salesforce ensures customers are well-informed about the guidelines and consequences of noncompliance, enabling safer and more responsible AI usage.

The fourth step is to Address Job Displacement Fears with Transparency. The organization should openly communicate the changes AI may bring to procurement roles and emphasize how AI will enhance, rather than replace, human expertise. By integrating privacy protocols into these discussions, companies can maintain trust and transparency.

Lastly, Lead Continuous Learning and Innovation in Procurement. Businesses, along with procurement professionals, should stay up to date with AI developments and data privacy regulations, fostering a culture of ongoing learning and innovation in procurement, while protecting sensitive data throughout the process.

By implementing these five steps, businesses can ensure that procurement professionals successfully adapt to AI integration while maintaining data security. This approach safeguards all stakeholders within the company, particularly protecting sensitive information like strategic plans from any risk of data leakage.

2. A tipping point for Procurement Skills mismatch 

As AI has been integrated into almost every part of a business, it’s now time for companies to start with adaptation. A recent report from Glassdoor shows that the percentage of professionals using ChatGPT or similar AI tools in the workplace has more than doubled in a year, rising from 27% when the tool first launched to 62% today. 

This rapid adoption highlights the increasing reliance on AI to boost efficiency and productivity across industries.

However, in procurement, our survey revealed that out of 804 professionals, only a significant portion is using ChatGPT in their daily workflows, with 198 using it every working day.

While businesses have made significant progress in adopting AI, procurement professionals are still exploring how to fully leverage tools like ChatGPT to boost productivity and efficiency. Additionally, procurement professionals are taking longer to adapt to these new technologies, particularly AI.

A report by Gartner highlights the need for Chief Procurement Officers (CPOs) to prepare for the significant impact digitalization will have on procurement operations and staffing. 

The report also indicates that AI-based solutions are increasingly capable of handling tasks traditionally managed by sourcing professionals.

In response, organizations must prioritize equipping procurement professionals with the necessary technological skills to effectively manage and utilize these advanced technologies. 

This is a crucial moment for businesses to address the evolving needs of procurement professionals and ensure they have the skills required to navigate the growing digital landscape in procurement operations.

A tipping point for Procurement Skills mismatch
1. Impact of this trend

Procurement Professionals Struggling to Adopt AI

A study by Gartner warns that procurement organizations that fail to adopt AI will face a “cost and agility deficit.” Automating repetitive tasks frees up procurement teams to focus on value-added activities that lead to better business outcomes.

According to Statista, more than half of the global supply chain industry is expected to adopt AI by 2025. This makes addressing the issue of skill mismatches even more urgent.

This shift also aggravates job security concerns among procurement professionals. As companies continue to automate and integrate AI tools without investing in upskilling their existing teams, they may be forced to replace employees who cannot adapt. 

Furthermore, businesses might find it more cost-effective to hire new talent rather than invest in improving the skills of current staff, seeking a quicker return on investment.

2. What actions should you take?

Strengthen Skills-Based Hiring and Professional Development

To help procurement professionals adapt to AI and address related challenges, companies must shift their focus from traditional degrees and qualifications to skills-based hiring. 

This approach will not only enable new professionals to navigate the drastic changes brought by automation but also ensure that businesses invest in continuous professional development.

For existing procurement professionals, identifying a clear skills taxonomy is important. This taxonomy will outline the strengths of the current workforce and highlight areas for improvement, allowing teams to better leverage automation and advanced technologies. 

Additionally, investing in ongoing learning programs focused on upskilling will provide both technical AI-related skills and essential human skills like critical thinking and creativity, ensuring a competitive advantage in the evolving procurement landscape.

3. More time for the Human Side of Procurement

Gone are the days when most aspects of the procurement process relied on manual labor, thanks to the surge of AI tools in business. 

Therefore, procurement managers now have more time to focus on negotiation and supplier relationship management (SRM). The remaining five steps in the procurement process that we follow, which tend to be repetitive and labor-intensive, are suitable for automation through AI and other advanced technologies. 

Furthermore, AI can speed up tasks such as Request for Information (RFI), Request for Quotation (RFQ), and contract management, enabling procurement teams to focus on more strategic initiatives.

While Generative AI can also assist with negotiation by role-playing as the other party, and procurement software can streamline supplier communications online, human connections will remain critical in procurement, particularly in building trust and innovation in supplier relationships. These areas involve emotions, empathy, cultural awareness, and human judgment, which AI cannot and will never replace. 

As we approach 2025, these two areas will play an even more vital role in combating supply chain disruptions. With routine tasks automated, procurement managers must prioritize improving negotiation and SRM to stay competitive and resilient.

More time for the Human Side of Procurement
1. Impact of this trend

Processes Remaining Human in Procurement Automation

Procurement has long been a relationship-driven activity. While certain processes can be automated, building long-term opportunities with suppliers relies on establishing emotional connections. This is especially true for negotiation, which requires understanding human nuances, gestures, and cultural differences to achieve successful outcomes.

AI is undeniably transforming the way we work, acting as a game-changer for many businesses and helping them thrive. However, as we continue to embrace this wave of AI, we must acknowledge its downsides. The more we rely on AI tools, the less we cultivate meaningful connections that can further enhance business success.

While AI can accomplish a great deal, it cannot replicate the essence of real relationships. It lacks empathy, cannot read social cues, and is incapable of building trust—qualities that only humans possess.

Milan Emadi, founder and CEO of DreamSofa, emphasizes the importance of strong relationships throughout the supply chain. He notes that disruptions can happen at any moment, which is why focusing on building these relationships is crucial. Each component of the supply chain must work in harmony for the system to function effectively.

Moreover, negotiation and supplier relationship management (SRM) are vital for strengthening the supply chain through meaningful supplier partnerships. Since AI cannot fulfill these roles, procurement managers must prioritize these areas to keep human connections intact within the procurement process. 

2. What actions should you take?

Improve the Human Side of Procurement

To help procurement teams improve their negotiation and supplier relationship skills, companies must empower them with training and development programs that enhance their soft skills. This investment will enable teams to connect more effectively with suppliers and build strong, lasting relationships.

Additionally, procurement managers can share valuable insights from their own experiences in preparing for negotiations. By guiding teams on how to communicate their position clearly and respectfully—avoiding gestures or actions that could offend—they can also help strengthen their teams’ relationship-building abilities.

Furthermore, businesses need to recognize that human connections are key to long-term success—something no AI can replicate. In a world where automation is on the rise, it’s the human touch that will continue to drive innovation, trust, and strong partnerships.

4. AI: overhyped or underestimated?

The debate over whether AI is just hype or genuinely undervalued will continue into 2025. Many businesses are scrutinizing the return on investment (ROI) from their AI initiatives. You may have questioned AI’s benefits or doubted its true potential to drive value for your organization and your procurement team. After all, who hasn’t experienced uncertainty about the effectiveness of such investments?

In the first release of ChatGPT in 2022, it struggled with basic tasks like solving math problems and often provided misleading or incorrect information—a major concern for those relying on it for accurate content generation.

While many businesses have successfully integrated AI tools to boost productivity by streamlining processes and handling repetitive tasks, skepticism remains regarding its ROI. Some even suggest that the AI bubble is on the verge of bursting.

The real question is whether companies will persist in integrating new AI tools into their procurement processes to enhance business operations in light of their scrutiny over ROI. As organizations evaluate the effectiveness of their AI investments, the focus will be on determining how these tools can truly optimize their procurement functions moving forward.

AI Overhyped or Underestimated
1. Impact of this trend

AI Hype Is Reaching Its Breaking Point

It’s no surprise that AI adoption is already widespread. One of the latest evolutions, Generative AI (GenAI), popularized by ChatGPT, has been in the spotlight since its release. 

Why? Because, like other GenAI tools, it can generate new content such as numerical data, images, text, audio, or video based on the data it’s trained on. 

This year, according to EY, around 40% of supply chain organizations are investing in GenAI, focusing on knowledge management applications.

However, some large companies have a more cautious view. Goldman Sachs, for example, recently published a report titled “Gen AI: Too Much Spend, Too Little Benefit?” after introducing generative AI tools across its workforce. The report reflects concerns about high costs and immediate return on investment.

A report by Zycus, in partnership with Procurement Tactics, found that 69.8% of organizations have yet to adopt dedicated AI software. However, user engagement levels suggest a positive outlook on AI’s transformative potential in procurement.

That said, AI, including generative AI products like OpenAI’s ChatGPT or Google’s AI, isn’t going away anytime soon. But for now, AI companies are burning through cash without delivering a product that’s easily monetizable and error-free, fueling concerns for many businesses about whether to fully embrace AI or not.

2. What actions should you take?

Adopt an AI Growth Mindset Amidst The Doubts

Despite lingering doubts about AI, it’s clear that many businesses have committed to it, with procurement increasingly integrated with AI tools to boost productivity.

For procurement professionals new to AI, developing an AI growth mindset starts with the practical integration of Generative AI (GenAI) into daily tasks. This includes fostering a mindset of experimentation, using AI to solve problems and make decisions, while keeping a human expert in the loop.

To eliminate doubts, procurement professionals should analyze AI performance and outcomes to ensure the technology meets productivity and quality standards. Regular evaluations and adjustments can optimize AI’s effectiveness, expanding its application across various tasks while keeping aligned with organizational goals.

By adopting this mindset, even if the AI bubble bursts, the skills gained from using AI tools will remain invaluable in the digital age. As new technologies emerge, these skills will continue to enhance business operations in the coming years.

Regardless of whether AI is overhyped, businesses should still adopt it, as the rapid evolution of technology is continuously reshaping how industries operate, as we’ve already seen in procurement. 

Theme 2: Shifts in Procurement Roles

As the procurement workforce increasingly spans multiple generations—from Baby Boomers to Gen Z—the roles within procurement are evolving, revealing diverse expectations and contributions. 

Each generation brings unique strengths and perspectives, which organizations must harness to ensure procurement processes remain agile and informed. By integrating the knowledge and insights from these various age groups, companies can better navigate shifting consumer demands. 

This generational diversity in procurement leads to three key trends we will discuss under this theme.

5. The “Golden Age of the Silver Worker”

Ever wonder why so many people of retirement age are still working in procurement? This is largely attributed to the ongoing financial instability affecting many countries today. 

In the U.S., for example, only 10% of Americans between the ages of 62 and 70 are both retired and financially secure. 

The majority of older Americans are either retired but living below the standard of living they had while working or continuing to work because they simply can’t afford to stop.

This issue is made worse by the reluctance of younger generations to join the workforce, a topic we’ll explore in the next trend, along with declining birth rates in developed countries like Japan and South Korea. 

These challenges are impacting businesses as a whole and are also making it harder for companies to find and keep experienced professionals to manage procurement smoothly.

The Golden Age of the Silver Worker
1. Impact of this trend

Aging Workforce and Talent Gaps in Procurement

As more people of retirement age continue working in procurement due to financial instability, companies may need more talent when these experienced professionals eventually leave the workforce.

This heavy reliance on older workers can hinder effective knowledge transfer, leaving procurement teams with skill gaps, especially since younger generations are slower to enter the field.

Additionally, research shows that stereotypes about older workers being outdated, inflexible, or less productive can harm their job satisfaction and productivity. These negative perceptions can affect their sense of belonging, self-esteem, and access to development opportunities, ultimately impacting overall productivity in procurement.

2. What actions should you take?

Creating Strategies that Bridge Different Generations

To tackle these challenges, companies must focus on retraining and reskilling their entire workforce, spanning multiple generations. According to Bain, 22% of workers aged 55 to 64 feel they need more tech skills. 

To address this, companies should develop training programs that align with older employees’ interest in meaningful work while encouraging supervisors to engage staff across all age groups.

Businesses should also implement continuous learning programs to help older workers in procurement stay competitive while fostering mentorship between more experienced and newer employees. 

Pairing seasoned professionals with younger procurement professionals for mutual skills-sharing, along with offering workshops tailored to different career stages, helps bridge the skill gap and ensures procurement remains agile and effective.

Additionally, companies can tap into the hands-on knowledge of older employees to help upskill younger talent. The practical insights gained through years of experience are invaluable for applying knowledge to real-world procurement scenarios.

By embracing these strategies, companies not only enhance the skills and capabilities of their current workforce but also foster innovation, teamwork, and long-term success in procurement. 

This approach creates an environment where employees of all ages can continuously grow and contribute, positioning the company to attract and retain talent across generations within procurement.

6. Young Talent Still Hesitates to Enter Procurement

With the numerous digital transformations in procurement, now is the perfect time to attract fresh graduates to the field. However, many companies are struggling to replace procurement professionals, as newer generations are more drawn to digital roles than traditional procurement work.

According to Deloitte, Gen Z, being digital natives, are especially attracted to the tech industry, with 51% of those surveyed ranking technology as a top industry for employment. They are also inclined towards careers that contribute to the greater good, such as education (41%) and healthcare (37%).

Interestingly, Gen Z is moving away from the traditional pursuit of prestigious roles. A survey by Intelligent found that around 32% of Gen Z respondents plan to pursue blue-collar jobs. This shift is largely driven by concerns about the rising cost of living and a preference for apprenticeships or vocational training, which are far more affordable than a four-year college degree, typically required in procurement.

Young Talent Still Hesitates to Enter Procurement
1. Impact of this trend

Shortage of Young Talent in Procurement

The reluctance of younger professionals to pursue careers in procurement could worsen talent shortages, especially as older professionals approach retirement. 

Procurement has long been viewed as a traditional field and often lacks visibility, making it less attractive to Gen Z compared to more dynamic sectors like tech, which is currently booming. As Gen Z leans towards tech roles or blue-collar jobs, procurement teams may struggle to bring in the fresh talent needed to drive digital transformation and innovation.

This shortage of young talent could disrupt the overall procurement process. While many older professionals remain in the workforce, the question remains: who will replace them? 

If organizations fail to address the talent gap, progress in adapting procurement to new technologies could be lost, leaving no new generation to take on and apply the necessary knowledge and skills. This failure could lead to a significant lack of workforce in the future, jeopardizing the effectiveness of procurement practices as experienced professionals retire and fewer skilled workers enter the field.

2. What actions should you take?

Rebranding Procurement

To tackle this challenge, organizations must rebrand procurement as a forward-thinking business function that embraces new technologies and promotes sustainability.

As procurement becomes increasingly integrated with AI and advanced tools, companies need to increase the visibility of procurement’s role in business. This will help Gen Z and millennials become aware of the field, sparking interest in procurement as a career path.

According to a Deloitte survey, nearly 9 out of 10 Gen Zs and millennials consider purpose one of the factors to job satisfaction and are more likely to reject work that doesn’t align with their values.

Therefore, businesses should prioritize sustainability in their procurement processes to attract younger generations, who are more likely to engage with organizations that value social and environmental responsibility.

Additionally, companies can implement grassroots talent initiatives by engaging with local communities and educational institutions to access new-collar and blue-collar talent pools in procurement.

These initiatives help identify and connect with skilled workers who may be uncertain about their career paths but possess valuable skills applicable to procurement.

By taking these steps, businesses can address the declining interest among younger talents in procurement. By introducing procurement in a way that resonates with them, companies can ensure their procurement processes remain supported by a new wave of young talent.

7. Procurement Takes the Lead Internally

Procurement has long been seen by other departments as merely “buying stuff.” However, it is increasingly recognized for its strategic value. By 2025, procurement teams will play a vital role in shaping business strategies, participating in discussions from the outset rather than only stepping in when problems arise—a shift from many businesses’ current practices.

As the backbone of successful operations, procurement oversees complex supply chains and aligns purchasing decisions with strategic business goals, unlocking value at every level of the organization. 

Early involvement in procurement fosters better collaboration with other departments, enabling potential issues to be addressed before they escalate. This proactive approach positions procurement not just as the first line of defense against supply chain disruptions but also as a key partner in their prevention.

While strategic procurement often takes the spotlight, tasks like policy implementation are equally crucial for smooth operations. However, procurement cannot succeed alone; collaboration with other departments is essential to maximizing its value.

Procurement functions best when it teams up with other departments, balancing effective strategy with well-run policies and practices. To keep pace with changes in procurement, businesses should support their teams in building the necessary skills and encourage close cooperation across departments to manage these critical areas effectively.

Procurement Takes the Lead
1. Impact of this trend

Imbalance Between Strategy and Execution Hurts Procurement Performance

An imbalance between strategy and execution can significantly disrupt procurement performance. Effective procurement not only requires a well-crafted strategy but also the ability to execute it seamlessly. When organizations fail to bridge this gap, they expose themselves to risks that can impact profitability and hinder growth.

American Productivity & Quality Center (APQC) emphasizes that procurement success relies on the practical execution of essential activities, not just strategic planning. Without focusing on execution, even the most robust strategies can fail. Poorly implemented policies lead to increased risks and strained supplier relationships, making it difficult for companies to stay agile in a fast-changing market.

Additionally, procurement cannot function well without working with other departments. If a department doesn’t clearly communicate its needs to procurement, it can lead to disruptions that affect the entire business. To avoid this, all departments should close the gap in their strategies and involve procurement early on to ensure smooth execution.

To overcome these challenges in 2025, organizations need to empower their procurement teams with the skills and resources to achieve a balance between strategic vision and operational execution. This balance is crucial for adapting to ongoing shifts in procurement and maintaining a competitive edge.​

2. What actions should you take?

Equip Procurement Teams with the Right Skills for Smart Execution

Given the multitude of challenges that procurement teams face—such as global conflict, inflation, and the lingering impacts of the pandemic—it’s understandable that much of their focus has been on immediate execution, addressing risks as they arise. 

However, to ensure that procurement processes stay resilient and minimize risks, businesses must focus on developing the right skills within their teams to close the gap between strategy and execution.

It’s not enough to just adopt new technology. Companies must also ensure their procurement professionals have the expertise to manage policies and processes effectively.

By doing so, procurement teams can not only handle current challenges but also grow stronger with the support of the business—demonstrating that overcoming obstacles leads to growth. 

Fostering collaboration with top management and other departments is essential to align procurement with broader business strategies. Procurement is more than just purchasing; it should be involved in every aspect of the business. 

Therefore, it’s crucial for procurement teams to effectively communicate and understand the needs of other departments, bridging the gap as business strategy encompasses everyone.

In short, businesses that invest in both the strategic and operational skills of their procurement teams will be better prepared to adapt and succeed in an increasingly uncertain environment, especially in 2025.

Theme 3: Tactics For Procurement to Thrive

In the first two themes, we’ve explored the evolving landscape of procurement, focusing on how new technologies are reshaping the field and the priorities that can help influence companies to retain top talent. 

In this theme, we’ll shift our attention to how procurement aligns with broader business goals, especially when it comes to driving growth. We’ve identified four key trends that reflect this focus.

8. Shift From Cost-cutting to Value Creation

In the past, procurement has prioritized cost-savings. However, by 2025, the focus will shift from merely securing the lowest price to delivering value across the entire supply chain.

This shift underscores the need for procurement leaders to go beyond basic cost management and provide more strategic, value-driven services. By doing so, organizations can concentrate on broader business goals, such as optimizing internal costs and enhancing overall performance.

Traditionally viewed as an administrative function, procurement’s role has evolved significantly since the 2000s to encompass broader strategic concerns within organizations.  

Today, procurement professionals not only secure quality materials on time but also develop strategies that directly impact the company’s bottom line.

Shift From Cost Cutting to Value Creation
1. Impact of this trend

Value-Driven Procurement

According to McKinsey, procurement’s greatest opportunity lies in moving beyond cost control to harnessing its in-depth knowledge of supply markets and the value chain. 

This evolution positions procurement to play a critical role in reshaping and optimizing the upstream value chain, maximizing value through closer collaboration with suppliers at all levels.

One Chief Procurement Officer (CPO) from an industrial firm explained to McKinsey that the role of the CPO has evolved into that of a “chief partnership officer.” 

This new role involves not only managing supplier relationships but also building stronger alliances across internal functions and business units. 

By acting as a knowledge broker, procurement is now responsible for creating value through collaboration within the company and with external partners.

Today, procurement teams continue to face pressure to mitigate the effects of inflation. As a result, many Chief Procurement Officers are seeking ways to transform their teams into more strategic, growth-oriented functions. 

By embracing these challenges as opportunities for improvement, procurement can evolve into a key driver of organizational success.

2. What actions should you take?

Focus on Value Creation

In 2025, procurement will need to prioritize value creation, driven by the goals of boosting revenue, strengthening supplier relationships, and addressing risks that could disrupt the procurement process. 

To achieve this, businesses must define what value means in the context of procurement while ensuring that it has a strategic impact that streamlines operations.

A recent EY survey highlights that cost management ranks as a top priority, second only to effective cash management, in today’s market. According to the survey, 70% of general partners (GPs) in private equity firms focus on cost reduction “somewhat” or “significantly” more than usual.

Moreover, many firms have found success by nearshoring, which reduces transportation costs, shortens lead times, and improves both quality control and flexibility. They have also renegotiated contracts and leveraged advanced procurement analytics to optimize spending.

This underscores the vital role procurement plays in helping businesses generate value through more efficient and strategic processes.

9. Geopolitical Instability Shapes Risk Management

With the challenges procurement faces today—like global tensions from conflicts in Gaza, Israel, Lebanon, Ukraine, and Russia, along with rising inflation—many companies are now focusing more on improving risk management in their procurement processes. 

According to a report by Economist Impact, 44% of executives continue to prioritize diversifying their supplier base. The reason is simple: having more suppliers helps protect against disruptions, making supply chains more flexible and reliable.

Some companies are moving away from models that focus mainly on efficiency and are instead building more resilient supply chains. The report also reveals that 26% of companies are choosing to work with fewer, but more dependable, suppliers to improve risk management through stronger relationships.

The report further points out that disruptions can cost businesses over 40% of their profits every 10 years, highlighting the importance of strong risk management in procurement.

Geopolitical Instability Shapes Risk Management
1. Impact of this trend

Poor Risk Management Weakens The Supply Chain

With the many challenges procurement faces today, companies that do not prioritize risk management leave themselves exposed to supply chain disruptions.

Without a clear strategy to mitigate or manage these risks, businesses can face significant financial losses, with some firms potentially losing over 40% of their annual profits due to disruptions, according to Economist Impact.

By focusing only on efficiency instead of building resilience, companies increase their risk exposure, putting both profitability and long-term stability at risk.

2. What actions should you take?

Enhance Procurement Risk Management

Procurement plays a crucial role in fixing supply chain issues. Companies that optimize procurement through new technologies can gain better visibility. 

As Michael Klinger, Siemens’s senior director of supply chain excellence, explained to the Harvard Business Review, “Technology doesn’t provide complete visibility to prevent supply disruptions before they occur, but it can offer information that helps you respond to disruptions much faster than human buyers can.”

Moreover, businesses need to actively enhance risk management by diversifying their supplier base and building stronger, more reliable partnerships. 

Diversification reduces dependency on a single supplier while fostering trust with key suppliers making it easier to handle disruptions. Reliable suppliers are especially important during times of tension, helping to avoid the risk of running out of products. 

By focusing on procurement risk management in 2025, organizations can better prepare for future challenges and maintain stability.

10. Category Management Takes Center Stage

This trend has been overlooked by many for years. However, as procurement evolves, so does the role of category management.

Category management, once considered a tactical part of procurement, is gaining strategic importance. Starting in 2025, procurement teams will increasingly leverage category management skills to manage their portfolios of products and services effectively. Doing this correctly will enable procurement professionals to drive value in collaboration with suppliers.

In the past, many procurement professionals viewed category management as a project-based approach to sourcing goods and services. However, its definition has quickly evolved. 

Today, it is recognized as a strategic method where products and services are grouped into similar categories, allowing businesses to find more efficient ways to operate.

In our experience, more businesses are beginning to recognize category management as a key driver of value. Consequently, we expect to see more companies embrace this approach in 2025, with category management taking a central role in procurement strategies.

Category Management Takes Center Stage
1. Impact of this trend

Enhanced Value Optimization Through Category Management

As we’ve seen throughout 2024, businesses are becoming more curious about category management, a trend that we expect to continue into 2025 and beyond. But why is this happening? The answer lies in the evolving role of procurement in today’s complex environment.

Procurement-driven value creation is now a key component of business strategies, with procurement teams leading efforts to navigate price fluctuations, supply chain disruptions, inflation, geopolitical tensions, and increasing sustainability regulations.

At the core of this shift is category management—a strategic approach that helps businesses manage goods and services across multiple categories, driving significant cost savings and more informed decision-making.

According to research by EY, category management can deliver 10-15% in cost savings, improved supplier relationships, and more data-driven procurement decisions. Yet, common barriers such as manual processes, governance challenges, and lack of data can hinder its full potential.

2. What actions should you take?

Boosting Category Management Efficiency with Technology

For category management to be successful, companies need to establish a framework that effectively utilizes advanced technologies to enhance collaboration and maintain strong oversight. 

These two aspects are critical for the success of category management, which can be achieved by selecting and implementing a centralized technology solution that facilitates collaboration and teamwork among procurement teams.

Moreover, having access to real-time and accurate data is important for category management. This data allows procurement teams to gain deeper insights into how they can strategize their categories despite the ongoing market fluctuations.

Additionally, companies should actively support these initiatives by investing in programs that enhance the skills of their procurement teams. Enrolling in category management training or programs that focus on the latest technologies and best practices in category management will promote continuous skill development and adaptability.

11. Struggle to balance ESG Goals with Profit

In the past, sustainability first emerged as a corporate strategy. However, this strategy often failed to lead to consistent and meaningful action from companies.

This is set to change. By 2025, many businesses are expected to ramp up their commitment to sustainable goals and objectives as skepticism around sustainability seems to be fading.

A recent EY survey found that 90% of global institutional investors now reconsider their investments if companies fail to incorporate ESG criteria into their business models. The same survey also indicated that by 2025, consumers will increasingly favor products and services that minimize harm to the environment, human health, and society.

This shift is driven by a growing awareness of the environmental impact of purchases, particularly among younger generations, who recognize that their future may be shaped by the effects of climate change.

However, companies still face the challenge of maintaining high-profit margins while focusing on sustainability. In 2025, many procurement teams will need to find the right balance between achieving their ESG goals and maintaining profitability during this transition to a more sustainable world.

To address these needs, procurement teams must implement effective, sustainable procurement tactics to navigate this challenge successfully.

Struggle to balance ESG Goals with Profit
1. Impact of this trend

Increased Pressure on Businesses to Embrace Sustainability

As we approach 2025, businesses are under increasing pressure to fully embrace sustainability, driven by both industry peers and societal demands. 

Many companies are now prioritizing sustainability, not only for its financial potential but also to meet the expectations of employees seeking more purposeful work.

A report by EY highlights how sustainability has become a core corporate strategy for many, pushing other businesses to follow suit. 

Additionally, Deloitte and Workplace Intelligence found that 80% of CEOs feel pressure to enhance human sustainability, further prompting companies to rethink their strategies to align with these growing demands.

Businesses that do not adapt risk falling behind in an era where sustainability is no longer optional but essential for success.

2. What actions should you take?

Genuine Sustainability Commitment Over Greenwashing

In today’s era of sustainability, some companies claim to be environmentally responsible but fall short in practice. When businesses “greenwash” their efforts, they risk backlash from consumers, which can damage their brand’s reputation. 

Many companies struggle to find the right balance between being sustainable and maintaining high profit margins, leading them to exaggerate their eco-friendly initiatives. This pressure to deliver profits can push them toward greenwashing, ultimately undermining their credibility and trust with consumers.

Take Unilever, for instance. The company had originally pledged to cut its use of virgin plastic in half by 2025 but has since scaled that back, now aiming for only a one-third reduction by 2026. 

It also planned to ensure all suppliers were paid a “living wage” by 2030, but now the goal is limited to suppliers that account for just half of its spending by 2026.

This shift reflects growing pressure on companies like Unilever to prioritize profits over environmental or social goals. This is no surprise that this hasn’t gone over well with consumers. Groups like Greenpeace have strongly criticized Unilever, saying the company isn’t doing enough to reduce the harmful impact of its plastic waste.

The lesson here is clear: if a business promises to commit to sustainability, it should follow through—not just for appearances.

Now, let’s look at a brand that is genuinely committed to sustainability: The Hershey Company. Hershey is working to expand its already 100% independently verified cocoa supply chain by ensuring full sourcing visibility for its cocoa volumes in the Ivory Coast and Ghana by 2025, according to its latest ESG report.

Also, Hershey is making progress in sustainably sourcing its other key ingredients, having already achieved 86% of its goal to source everything sustainably by 2025.

Hershey’s commitment to sustainability isn’t just talk; it’s a clear example of how large companies can genuinely engage with environmental responsibility. 

This level of dedication not only earns the trust of consumers but also enhances the brand’s reputation, proving that a true commitment to sustainability is possible and beneficial.

Conclusion

As we approach 2025, it’s clear that procurement is still undergoing a lot of changes, particularly in adapting to the new technologies integrated into the procurement process.

One significant shift businesses must address is how procurement should rebrand itself to attract younger generations to the profession. While companies may rely on the older generation to fill procurement roles, these individuals will eventually retire, creating a talent gap. If procurement fails to rebrand itself as an attractive career option, this shortage of new talent will become a pressing issue.

In addition, businesses are placing a stronger emphasis on risk management due to global tensions, inflation, and fluctuating commodity prices. Companies are diversifying their portfolios and fostering stronger relationships to mitigate supply chain disruptions. 

Simultaneously, there is growing internal and external pressure for organizations to make sustainability a core strategy, with stakeholders increasingly focused on distinguishing between genuine efforts and mere greenwashing.

These shifts are not unique to procurement; they are happening across industries and functions. As businesses evolve, these insights will help you stay ahead of potential challenges that could arise if you fail to adapt. Procurement continues to play an important role in addressing risks like supply chain disruptions and sustainability. 

Therefore, businesses need to support procurement professionals in navigating these changes. It’s not just processes and policies that need to evolve—professionals themselves must upskill to ensure both their personal growth and the organization’s success in these uncertain times.

In the end, the success of procurement will depend on how quickly organizations adapt and rise to the challenges of a rapidly changing landscape.

Explore the Future of Procurement with Procurement Tactics

That’s a wrap on the procurement trends of 2025. I do want to leave you with one note.

At Procurement Tactics, we’re dedicated to helping procurement professionals stay ahead of the curve in this rapidly changing landscape. Our comprehensive online courses are designed to equip you with the skills you need to excel in key areas like AI integration, negotiation, supplier relationship management, and sustainability.

Whether you’re looking to sharpen your strategy, improve risk management, or master the latest trends in procurement, our courses provide actionable insights and hands-on learning to help you achieve your goals.

Ready to take the next step? Have a look at ProcurementTactics.com to get an overview of our online courses. Are you interested in training for your team? Feel free to schedule a demo to learn more about our procurement Boot Camps. I’ll put the links in the description.

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Frequentlyasked questions

What are the primary themes that will significantly impact procurement in 2025?

The three key themes are AI Transformation, Shifts in Procurement Roles, and Tactics for Procurement to Thrive. These themes capture all the major shifts that will happen in procurement in 2025 that procurement professionals must be ready for to stay ahead in the evolving landscape.

How will AI impact procurement in 2025?

AI will expand beyond personal tasks and become integral to procurement operations, helping streamline tasks and improve efficiency.​

What will be the future of procurement in 2025?

The future of procurement lies in how quickly organizations can adapt to changes in technology, risk management, and sustainability while upskilling their teams to meet these challenges.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics