By Simon Thompson, VP Northern Europe at JAGGAER
As global businesses continue to navigate turbulent waters when it comes to the supply chain, procurement leaders need to stay up to date with trends set to rock procurement in 2025.
Here, we analyse the top 10.
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Juggling tariffs and conflict
With international conflict, the threat of raising tariffs and counter-tariffs influencing supply chains worldwide, robust risk management has become more critical than ever. Companies are acutely aware of vulnerabilities in their supply networks that can be exposed by disruptions – whether geopolitical, economic, or environmental. To mitigate these risks, procurement leaders will need to ensure they are able to forecast risk along the whole supply chain leveraging technology and supplier relationship management to improve transparency and resilience in case a rapid pivot is required.
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Cybersecurity
The growing reliance on digital platforms, Cloud-based systems, and interconnected supply chains has amplified exposure to cyber threats. Securing sensitive information will not only protect against external threats but also build trust among stakeholders and partners.
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Regulatory compliance
Governments worldwide are introducing more rigorous rules to ensure ethical sourcing, anti-corruption measures, and environmental responsibility (EU CSRD and AML Directive, the UFLPA, etc.). Companies that integrate transparency strategies into their procurement processes will be better positioned to comply with upcoming regulations avoiding potential fines and reputational damage, while also achieving long-term growth.
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Scope 3 and sustainable procurement
Sustainability is a cornerstone of procurement strategy. For many organizations, Scope 3 emissions – those indirectly resulting from the supply chain – represent the bulk of their carbon footprint. To curb these, procurement teams will need to work closely with suppliers and implement efficient communication channels, eco-friendly practices, responsible sourcing of raw materials, and reduced energy consumption.
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Artificial intelligence (AI)
From automating routine tasks to predictive analytics for demand forecasting, AI can increase efficiency and drive smarter decision-making. However, the integration of AI will require procurement leaders to ensure that their teams have the skills needed to interpret AI-generated insights and act on them effectively. This shift will necessitate significant investment in AI tools and platforms that can support large-scale data analysis.
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Transparency
The effectiveness of AI initiatives hinges on data quality and transparency. As companies harness AI to drive procurement decision-making, they will face increased scrutiny over how data is collected, analysed, and applied. Businesses should not be intimidated by these requirements however, as the benefits of integrating AI to leverage automation, speeding up long manual processes, improving accuracy and user satisfaction will empower procurement to play a more strategic role in company growth.
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Attracting new talent
Procurement roles are becoming more complex and demanding; the next generation of procurement professionals will need to possess a diverse skill set, including data analysis, strategic thinking, and technical proficiency. To appeal to top talent, organisations will need to promote a culture that emphasises continuous learning, career development, and innovation.
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Cost savings and managing capital
Amid the global economic slowdown, cost management continues to be a pressing concern. Companies will need to leverage technology to automate processes and reduce operational expenses while identifying opportunities for strategic sourcing.
Investments in advanced analytics will help procurement teams to identify cost-saving opportunities across the supply chain, pinpoint inefficiencies, optimize supplier performance, and negotiate better contract terms.
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Better supplier relationships
The importance of transparent communication and trust between businesses and suppliers has never been more evident. Building strategic alliances with suppliers can facilitate better risk-sharing arrangements, more reliable deliveries, and greater innovation. This collaborative approach will also support sustainability goals by enabling joint efforts to reduce emissions and promote ethical production practices.
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Nearshoring, reshoring, and sourcing from emerging markets
To bolster resilience and reduce dependency on a limited number of international suppliers, companies will increasingly turn to nearshoring and reshoring. In the US, potential new tariff agreements may bring production closer to home, shortening supply chains and enhancing control over logistics. At the same time suppliers may move their operations to avoid hefty tariff measures, meaning that procurement teams will need to review whether many of their contracts and arrangements are still contractually solid.
In addition to this, sourcing from emerging markets that are not affected by tariffs will become even more of a strategic priority for businesses looking to diversify and de-risk their supply base.
The procurement landscape is set to undergo significant transformation by 2025, shaped by a complex interplay of technological innovation, international tariffs, regulatory pressure, and sustainability imperatives. Procurement departments that proactively adapt to these trends will be better positioned to build resilient, efficient, and responsible supply chains.
