Procurement isn’t the simple purchasing function it once was.
Over the past decade, procurement has been given a shot in the arm and is today almost unrecognisable from what it once was. Indeed, the function of 2025 is complex and is filled with various nuances and ever-changing disruptions amid a dynamic geopolitical environment. One of the biggest reasons for the evolution of procurement has been the introduction and acceleration of new digital tools that offer exponential cost and time savings.
As part of that, procurement orchestration has become an important piece of the puzzle to company strategy. Procurement orchestration represents the entire strategic integration of all processes that comprise an organisation’s procurement strategy. It focuses on putting the various tools and processes that cross-functional departments and stakeholders use. It is a powerful, broad view which consists of tools and strategies that allow for spend visibility to be maximised and enable the efficiency of procurement teams.
CPOstrategy explores five of the biggest ways to benefit from procurement orchestration.
Fragmented procurement processes
Orchestration platforms automate mundane procurement tasks such as purchase order creation, approvals and invoice matching. As a result, it reduces manual errors, decreases cycle times and frees up procurement professionals to focus on strategic activities. If one or more common procurement solutions have been implemented, then companies could have experienced siloed workstreams and data. Over time, these inefficiencies can compound which leads to the likes of manual, ad hoc workflows to coordinate the procurement process. Orchestration links systems together such as legal, IT and other teams, to enable them to work in their preferred systems while finance and procurement gain full visibility into all stages of the process.
Power of data
Orchestration allows for a single source of truth and can help guard against potential issues. Problems such as incorrect purchase orders, mismatched invoices and delayed payments can strain supplier relationships, cause financial losses and mean operational inefficiencies. Orchestration minimises errors by automating key tasks, enforcing data validation standards and processes as well as connecting purchasing and AP invoicing. By consolidating data from sourcing, contracts, spend analysis, and supplier performance, orchestration platforms support better-informed decisions. AI and analytics can further optimise category strategies and supplier selection.
Rogue spending
Procurement can sometimes be a lengthy process. This means that sometimes spending happens outside of approved supplier contracts. This happens when there is low employee adoption of procurement systems, a lack of centralised procurement policies or limited spending visibility. The result of this can mean higher costs, decreased negotiation leverage and the prospect of non-compliance. However, orchestration can solve this problem through stricter controls and approval workflows that eradicate unauthorised spend and improve financial governance. This will enable better visibility, control, data integrity as well as allow for a greater user experience.
Agility
Today’s world is unstable and is filled with complex challenges. Take the past few years, for example. In 2019, few could have predicted what the next six years would hold for procurement and supply chain. But the likes of Covid, wars and inflation issues, among others, have caused major changes to the way procurement works. One of the biggest challenges of 2025 has been President Trump’s tariffs imposed on various goods. This sparked a trade war with China and retaliatory measures from other countries. As such, an agile response to geopolitical disruptions is imperative in order to avoid being left short and having to change supplier contracts and pricing strategies. However, orchestration can help provide a centralised system that powers quick and strategic decision-making. Ultimately, it means that organisations can pivot quickly and avoid disruption despite sudden economic changes.
Improved supplier collaboration
All good relationships with suppliers are built on trust. In truth, it is impossible to be successful in the modern business world without partnerships. This means that if an organisation is still reliant on legacy systems, it risks inefficiencies creeping into operations. Indeed, poor supplier collaboration not only delays procurement functions but also exposes companies to compliance risks and excessive costs. But, this is where orchestration can help. Improved process organisation enables businesses to share information in real-time via centralised systems. As a result, this means suppliers can monitor order statuses, compliance and workflows without the requirement for continuous back-and-forth communication. Through better supplier collaboration via orchestration, it should allow for less friction, increased efficiency and better delivery over strategies to lead to a greater chance of achieving long-term success within procurement.