Study This is What Will Matter in Supplier Management in the Future

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A study by Ivalua highlights the transformation in the procurement landscape and reveals what this means for the development of leaders and professionals.

The procurement landscape is facing unprecedented external pressure and undergoing transformative change. This is the result of a study by the provider of cloud-based spend management solutions, Ivalua, and the platform provider Procurios, titled "Embracing GenAI and Whatever Comes Next."

137 procurement executives participated in the survey. The results underline the importance of adaptability and highlight the significance of strategic thinking and technological integration. Only in this way can companies succeed in an ever-changing environment.

Global disruptions, geopolitical tensions, and economic uncertainty are shaping the industry sustainably. The demands on procurement teams have accordingly shifted: they are now expected to evolve from traditional cost-cutting approaches to a more strategic role.

Tariffs Force A Rethink of Supplier Strategies

61 percent of respondents expect global conflicts to expand and continue to impact supply chains. More than half (55%) of respondents believe that U.S. tariffs will force a rethinking of supplier strategies, and another 50 percent think that the outcome of the U.S. elections will change the global regulatory landscape. Additionally, 81 percent of procurement managers consider another "black swan" event likely, underscoring that uncertainty is a constant factor today.

"Procurement has changed dramatically in recent years," says Alex Saric, Chief Marketing Officer (CMO) at Ivalua. "Today, it is a constant balancing act that involves everything from global disruptions to soaring costs and uncertain trade policies."

Next-generation procurement means enabling teams to quickly and effectively adapt their spending and supplier strategies to changing conditions. The use of AI and other advanced technologies can drive real transformation.

Use of Technology Such As AI to Manage Complexity

More than half of procurement teams (52%) anticipate significant automation of tactical tasks through technology, enabling them to focus on high-value activities. Specifically, 63% state that AI will enhance efficiency and productivity.

45% of teams are already utilizing generative AI to improve areas such as spend analysis, procurement, and contract management. Additionally, 46% believe the technology will support their decision-making.

"More and more teams are turning to generative AI to automate routine tasks, improve decision-making, and boost productivity," Saric continues. "The rapid advancements in agent-based AI will soon enhance the quality and scope of its impact on business."

Challenges Remain: Inflation, Sustainability Regulations, Talent Shortage

However, challenges remain. The most pressing concerns for procurement professionals currently are:

• Inflation (75%),
• Sustainability regulations (63%), and
• Talent shortage (58%).

In response, 74% of procurement leaders have revised their strategies, highlighting the importance of adaptability in a rapidly changing landscape.

While cost reductions remain a top priority for many (51%), the scope of procurement is expanding beyond traditional cost-cutting measures into more strategic areas.

77 percent of respondents expect their procurement teams to place a greater focus on strategic decisions and value creation in 2025. More than half (54%) of procurement managers anticipate that their responsibilities will increasingly concentrate on sustainability and ethical sourcing. Furthermore, 50 percent of procurement experts stated that they will spend more time collaborating with suppliers. (mk)

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