Global supply chains are once again at a critical juncture. Trump induced tariffs, tighter red tape and global trade disruptions continue to make headline news, and are making supply chains more complex, more costly and more localised.

But while new tariffs are prompting a shift in sourcing locations, trade routes and end destinations, this is far from a new phenomenon for the industry. Issues and blockages occur all the time, especially in today’s fast-changing socio-political and economic climate. What it does highlight, however, is a need for supply chains to evolve in line with their new environment, to accelerate cross-border trade, reduce administrative burdens and enhance industry collaboration to avoid these issues and minimise business risks going forward.

Those that establish business resilience now will have a distinct advantage in maintaining flexibility, compliance, and efficiency in a rapidly changing global trade landscape. Our industry research shows that US supply chain leaders are planning on increasing investment in supply chain technology by 7.5% over the next year. But where do organisations start? And, how do they make sure that the changes they make now will be proof against the next big industry disruption?

Accelerate cross-border trade and diversify sourcing strategies

We’re now seeing a shift towards nearshoring and friendshoring, where supply chains prioritise trade partners least impacted by protectionist measures and tariffs. With US tariffs on Chinese goods increasing, for instance, supply chains will likely pivot to alternative manufacturing hubs, such as Vietnam, India, or Mexico. Of course, recent events have proven that these countries are also at risk of US tariffs. 

Here, US companies may face reduced competition in some industries, but at the cost of higher prices and reduced supply options – which may prove detrimental to several domestic markets and well-established global trade flows. This forces OEMs to absorb the costs or seek alternative sourcing strategies and locations, achieved through building relationships with markets harboring more favorable trade policies, and more accessible supply chains. 

But in doing so, businesses can get tied up in red tape in unfamiliar markets, and struggle to keep up with differing cross border and product compliance regulations. This can be a stressful experience and lead to delays, product seizure, fines and impending reputational damage. Procurement and supply chain professionals in the operation of trade may also face legal action or lose licenses in the process.

Short term fixes 

Many international manufacturers are seeking a short-term fix, rushing through large volumes of trade to the US before tariffs take effect, causing significant strain on already fragile global supply chains. Here, the danger is that manufacturers have cash tied up in unsold stock, a common, and potentially devastating, indicator of overreliance on a single market. Additionally, trade ecosystems are operating beyond capacity, meaning more room for human error, fraud and data breaches, and lost cargo, should it all go wrong. 

Smart procurement officers and organisations need to strengthen supply chain networks and build business resilience to accelerate trade, and navigate congested trade lines, particularly if they are to shift sourcing and end destinations. Many OEMs are already working to restructure supply chains by moving production closer to demand centers, but doing so takes time, agility and investment. 

Reduce administrative burdens and build business resilience

An alarming 67% of supply chain and procurement professionals are concerned about human errors and mistakes in managing global supply chains. Almost a fifth (18%) still use paper-based systems, like manual logs and forms. In the modern world, these processes are no longer good enough. After all, AI, predictive analytics and automation are only as effective as the quantity and quality of the data they’re sitting on. Mapping out, digitising, and making the supply chain ecosystem accessible is key. 

But just knowing where products are isn’t enough. Even if businesses create visibility in their supply chain, they can be left ‘in the dark’ on its status, and without the ability to make actionable changes, particularly in case of disruption. Investing in good data foundations falls down if systems are operating in silos.

Through building in tools like compliance, risk assessment and mitigation planning, demand forecasting and inventory management, into digital supply chains, procurement professionals and supply chain operators benefit from an automated, agile trade ecosystem, helping them to navigate turbulent waters and congested trade lines with relative ease. 

Interoperability

Key to success in doing so, however, is building interoperability into the supply chain ecosystem, making sure that different computerised and automated systems can connect and exchange information with each other at all stages of a product’s journey. Critically, this also means hosting  a network that enables differing IT systems to work together, while integrating digital identification systems, reducing data silos and helping to track goods from warehouse to delivery.

This data is then shared between each trading partner in the supply chain, providing supply chain manager with a real-time oversight of a product’s journey. As a result, supply chain operators can quickly adapt to changes in demand, or if a chain disruption takes place, the problem can be identified quickly, and rerouted to minimize ongoing disruption, reduce business risk, and ensure operational continuity.

Enhancing industry collaboration and staying digitally protected

Organisations need to share data, insights and risk assessments to collectively strengthen supply networks. But many businesses face limited budgets for digital transformation, making investments in cybersecurity and interoperability more challenging.

Without proper data-sharing infrastructures, supply chains risk inefficiencies and increased exposure to fraud and cyber threats, particularly if businesses rush through the process, or try and enforce unfamiliar digital systems on their partners.

Emerging technologies such as blockchain can help mitigate these risks, providing end-to-end visibility and authentication in a time when supply chain fraud is an increasing concern, offering robust security protocols, access controls and audit trails that only permissioned network members can access.

Integrating blockchain security with interoperability strengthens the overall resilience of the supply chain ecosystem, facilitating collaboration and trust between trading partners, reducing bottlenecks and providing data that stakeholders or security partners need to respond to issues in real time. This is achieved through standardising data security practices, minimising vulnerabilities caused by isolated or incompatible systems and enhancing security measures for trade as it moves along its journey.

Adding a layer of strategic thinking

Predicting the future of the supply chain is an impossible task, but we know that trade disruptions, socio-political and economic issues will continue long into the future. What they highlight, however, is an opportunity for supply chains to evolve in line with their rapidly changing environment and build competitive advantage in the same process.

By digitising the supply chain, procurement and supply chain professionals benefit by better informed decisions, and a means to protect against trade disruptions, while also streamlining safe, secure and effective operations. Those that establish business resilience now will have a distinct advantage in maintaining flexibility, compliance, and efficiency in a trade environment that changes each and every day – and ensure that they are ready for the next global trade disruption.

But technology can’t do it all. Once the systems are in place, organizations must maintain safe stock levels, establish alternative transportation routes and diversify sourcing locations to mitigate future impacts. So, when the next delays occurrm, there are clear processes and actions in place so that businesses can resolve these issues in a few clicks.

Diversity, equity and inclusion (DEI) is at a critical juncture. DEI work in the US is subject to an assault by far-right forces, providing a groundswell for the Trump administration’s implementation of a range of measures impacting multiple marginalised communities: migrants, People of Colour, Trans and Non-Binary people, Disabled folks, Women and others. Due to the US’ economic and cultural influence, the assault on DEI in private companies is having global ripples.

However, for those of us outside of the US, we must delink what is happening specifically in that context with what we can do across the rest of the world. Especially here in the UK where our legal and cultural context is distinct.

This false positioning of DEI as somehow unfair to White people, non-Disabled people and Men among other groups is clearly unfounded when we look at the data across company contexts and society more widely. As such, equity and inclusion work remain crucial for companies that value fairness and want all staff to thrive. Instead of retreating in the face of critique, this moment demands that we strengthen our methods: shifting away from symbolic gestures toward structural redesign.

For Chief Procurement Officers and procurement professionals, this means being more discerning about who and what is brought into the organisation to support DEI. When you procure DEI services, you are not just commissioning a programme. You are setting the standard for how your company approaches equity. The stakes are high.

Here is how to do it with rigour.

1. Structural Interventions Over Individualised Responses

A common trap is to invest in individualised responses, like unconscious bias style training, and expect systemic outcomes. Research has shown this type of training is limited in effect based on the fact it misdiagnoses the nature of inequities. Effective DEI interventions to deliver resource efficiency – a priority of procurement leaders – should target the design of your policies, processes and practices as these have scaled impact across the organisation.

If your data shows disabled staff are less likely to be promoted, for example, your colleagues’ first instinct might be to deliver disability inclusion training to line managers. However, a more scaled and cost-effective initial step would be to procure an audit of your promotion policies and role evaluation processes. What rubrics are being used? How is work allocated? How are promotion decisions made? Who makes them? Removing these and other barriers within your promotion processes that hinder equitable progression will permit more equitable outcomes irrespective of the trainability of the person in the process.  

An impactful DEI supplier will help you diagnose root causes rather than simply deliver a solution based on potentially faulty assumptions. It is to redesign the structures that drive inequity at scale. So, seek people who will challenge you to do this.

 2. Intersectional and Issue-Led Approaches

DEI work must reflect the reality of how systems of inequities operate in people’s lives and through organisational structures. That means investing in work that is grounded in intersectionality.

Look for suppliers who help you understand how issues show up for multiple marginalised groups in your data, processes and culture. 

This is what we call an “issue-led approach” in our recent White Paper, DEI Disrupted. This involves shifting the starting point of DEI work from individual identity groups to systemic issues. The power of this approach lies in enabling us to effectively address points of inequity that affect multiple marginalised communities, whilst also attending to the specific barriers a particular group may face. It also helps build coalitions across marginalised communities, as it doesn’t ask any group to wait their turn.

This method is also aligned with the priorities of a procurement leader: ensuring you do as much as possible for as many, efficiently. The benefit with this pivot to mainstream approaches is that it also ensures that inclusion is not superficial or siloed but centred on redistributing access, opportunity and influence at scale.

3. Rigorous Evaluation of Assumptions and Outcomes

DEI is not a hunch. It is a technical change and must be measurable, just like any other core business function. This requires clarity on what success looks like and which outcomes you are seeking. A credible supplier will interrogate your assumptions. They will not accept your hypotheses as a given. They will ask: what data supports this diagnosis? What change are you trying to achieve?

Measurement should focus on outcomes, not just inputs. It is not enough to count how many attended a training, if training is a responsive and valuable solution. What is meant to change as a result? Are more marginalised people to be promoted? Is attrition decreasing for underrepresented groups? These are the markers of impact.

Effective DEI suppliers will guide you to test and iterate your approaches based on data, theory and sound frameworks that do not trend or intuition.

4. Resilience Over Reaction

In DEI Disrupted, we outline how many organisations have relied on reactive and disconnected strategies. These scattergun efforts often appear responsive in the short term but rarely hold up over time.

At a time when DEI is increasingly scrutinised, companies need more than good intentions. They need principled and resilient strategies. Procurement is one of the most powerful accountability measures for ensuring that your DEI work is embedded, rigorous and protected from reputational risk.

The suppliers you engage with signal your values. Are you selecting partners who reinforce shallow narratives or those who support your organisation to build systems-level change? Are you investing in work that is cosmetic or in work that withstands challenge because it is grounded in equity and evidence?

Final Reflections

Procurement is not neutral. It reflects your organisation’s priorities, strategies and theories of change. It is a way of articulating what matters and what does not.

In the current climate, there may be pressure to retreat from DEI. But equity work is not a trend. It is a necessary commitment to fairness and dignity in the workplace. It is not a project that exists outside core business functions. Far from it; it’s central to how you design policies, shape culture and meet your responsibilities as an employer.

When you engage suppliers for DEI work, you are not only making a purchasing decision. You are choosing what kind of organisation you want to be.

Choose the partners who help you ask better questions, uncover deeper truths and build something more enduring than a one-off tick box.

Because equity, when taken seriously, is not fragile. It is foundational.

You can download the Fearless Futures whitepaper here: DEI Disrupted: The Blueprint for DEI Worth Doing.

This month, the details of Trump’s self proclaimed ‘Liberation Day’ finally came to light, with the US President announcing a comprehensive tariff policy, including a baseline 10% tariff on all imports into the US, with 20% imposed on EU imports and significantly higher rates reserved for certain countries accused of unfair trade practices.

While the situation is changing daily, and companies on both sides of the Atlantic are scrambling to assess the impact, it’s a stark reminder of how political decisions can completely upend global trade in an instant.

So far, the fallout has been both swift and widespread; much of the world’s markets have slumped, economists have warned a trade war is looming, and both European and American manufacturers that rely on transatlantic steel and aluminum imports are facing huge uncertainty. 

Impact on the CPO

These tariffs however are not just a manufacturing issue, but an issue that’s already rippling through industries, raising costs and shifting trade patterns. For the world’s Chief Procurement Officers (CPOs) and supply chain leaders, we’re already starting to see a number of challenges emerge, including:

• Budgets issues: triggered by increased costs for imported materials.

• Increased operational complexity: It can be expected that leaders will have to re-evaluate supply chains and make substitutions, reconsider logistics, in addition to adjustments to commercial terms. This will be fraught with difficulties, and required activities should not be underestimated in terms of the time, skill, and resource demand – particularly in the industrial sectors.

• Planning difficulties: It’s hard to plan in a state of flux, certainly one like this. Planning is a critical part of the supply chain, and will certainly be under strain. Clear forecasting and planning are essential to managing the supply chain, and this is going to be very difficult.

• Increased internal pressures: Unfortunately, there is likely to be a keen eye on procurement teams from finance teams and operations teams, and possibly increased scrutiny due to unease around any misaligned sourcing strategies. It’s a very challenging time to navigate.

Countermeasures see trade war heat up

Another key factor at play here is the world’s response to Trump’s decisions. Again, while this is a very fluid situation, we’ve already seen the EU, China and Canada warn the US of countermeasures.

We’re also seeing efforts to bolster local manufacturing through initiatives like the ‘Made in Europe’ campaign, reflecting a growing shift towards protectionism. Efforts to reduce reliance on external markets and counter tariffs may be a valid response, but any tit-for-tat measures can be very unhelpful and just increase trade tensions. It can also lead to retaliatory cycles that have the potential to spiral out of control, causing problems such as:

• Fragmented compliance: Diverging rules across borders that are shifting in a very dynamic way, as countries decide how to respond to the shifts in their own way, will likely further complicate global procurement strategies.

• Reduced optionality: Shrinking supplier pools will be highly probable as trade walls go up. Tariffs can raise prices, soften demand, or spark consumer backlash in B2C sectors. Supply and demand may well materially change in certain sectors.

• Loss of pace: Red tape and uncertainty means cross-border transactions will simply take longer. That’s a lot of pressure on procurement teams who may really struggle to meet business timescales – delaying fulfilment and possibly hurting the customer experience.

The importance of strengthening trade relationships 

While many believe that tariff changes and their resulting challenges are largely beyond the control of CPOs and supply chain leaders, there is a great deal that can be eased by investing in stronger trade relationships; offering continuity through the chaos.

This is because, in times of crisis, transactional suppliers tend to protect themselves first. The problem with relationships that are purely transactional is there’s little incentive for suppliers to go the extra mile, and contractual rigidity leaves no room for improvisation. This can lead to delivery failures, financial penalties, and stranded assets. Worse still, failing to deliver amid disruption doesn’t just impact operations; it erodes brand credibility, particularly in tightly regulated or just-in-time industries.

Trust-based relationships, on the other hand, enable flexibility. Strong, strategic partners are not only more likely to renegotiate terms instead of pushing material disputes and perhaps even litigating, but they can also open the door to early intel. Knowledge sharing is a really important part of planning, becoming even more so through tougher times. So fostering an open and transparent relationship that shares early signals of disruption will be key. There’s also the pro of shared problem-solving; whether it’s co-creating alternative sourcing, joint ventures, or localised production to bypass tariffs, this period will be all about working together closely, and collaboratively. 

The bottom line is that well-managed partnerships mean reduced conflict, fewer disputes, faster resolution, and reputational insulation; again, a key point, considering there will likely be many frequent and unexpected issues on the horizon. The alternative – a breakdown in relationships – can lead to disputes and in some instances expensive, drawn out, brand-damaging court battles. While businesses are much more adverse to court processes these days, we still see prolonged disputes that are just as expensive and culminate in large out-of-court settlements.

Four conflict resolution strategies for CPOs and supply chain leaders

With the above in mind, any strategies that work to strengthen trade relationships will become increasingly important. 

To help manage risk, enhance supply chain resilience, protect corporate reputation, and ensure financial stability through these challenging times, consider the following:

1. Invest in conflict resolution technology: Given that teams are already stretched for resources and businesses are increasingly focused on cost reduction strategies, hiring additional staff to handle conflict is not a viable option for many. Instead, look to invest in effective conflict resolution technology that can handle the heavy lifting. There are advanced tools available that can automate and streamline dispute management, alleviating pressure on the teams, reducing operational costs, and ensuring smoother collaboration between buyers and suppliers. 

2. Introduce pre-contractual clarity: Any ambiguity whatsoever in contracts can lead to disputes and inefficiencies. So, instead of relying on the standard model traditional clauses, ensure contracts include comprehensive dispute resolution clauses and escalation pathways. Clearly defining this upfront helps prevent conflicts from escalating and provides all parties with a structured framework for addressing challenges before they become costly disruptions.

3. Consider third-party solutions for neutral facilitation: When conflicts do happen, emotional stand-offs can stall negotiations and worsen tensions. Neutral, third-party facilitation can help here by cutting through the issues efficiently and objectively. 

4. Adopt scenario-based renegotiation: When under unpredictable conditions like shifting tariffs or supply chain disruptions, rigid, static contracts can fail. As such, data-driven ‘what-if’ modelling is recommended, to reprice contracts collaboratively under different tariff scenarios.

Weathering the immediate storm and beyond

While Trump’s ‘Liberation Day’ tariffs may highlight the importance of strong trade relationships, for CPOs, the challenge isn’t just about navigating immediate disruptions – it’s about building long-term resilience.

As such, it’s important to remember that conflict resolution strategies aren’t just a reactive measure. You should adopt them as a proactive tool for ensuring supply chain continuity, financial stability, and for safeguarding brand reputation. 

Faster paths to resolution means fewer stalled projects, while cost containment strategies help avoid expensive legal battles and material financial settlements, supporting successful commercial outcomes. Embedding these capabilities also supports deeper collaboration, and the building of a shared language of accountability across suppliers, finance, legal, and operations.

With uncertainty set to persist, organisations that prioritise robust trade relationships and proactive conflict resolution won’t just weather today’s storm – they’ll also secure a long-term future in what’s currently looking like an increasingly volatile global market.

In the world of procurement, much attention is given to strategic spend – the high-value purchases that directly impact business operations. Yet, what about the low-value, high-frequency transactions that make up tail spend?

For many organisations, this area of expenditure often receives less focus that strategic spend. Essentially, tail spend comprises small or individual purchases, which tend to be a lower priority for procurement teams. There’s less perceived value versus the effort required to manage them. However, advancements in AI-driven procurement technology combined with the right expertise now provides businesses with an opportunity to better manage and optimise tail spend. With the right technology, procurement can turn tail spend into a powerful strategic asset.

The Nature of Tail Spend

Strategic spend, which typically accounts for around 80% of an enterprises total outlay, naturally commands greater attention. However, tail spend – the remaining 20% – can translate into hundreds of millions, even billions of dollars annually for large enterprises. This often fragmented, decentralised, and unstructured spending can lead to inefficiencies, maverick purchasing, and unoptimised costs.

Customers tell us lack of tail spend visibility is a key challenge they face as a business. Thousands of low-value transactions across multiple suppliers often fall outside standard procurement processes, making it difficult to track and control. Without a structured approach, companies risk losing savings opportunities, duplicating purchases, and increasing compliance risks.

Many businesses are coming to realise that by not actively managing tail spend may result in non-compliance with internal policies and external regulations. Companies may inadvertently work with non-compliant vendors or fail to meet Environmental, Social, and Governance (ESG) objectives. More effective oversight of tail spend helps mitigate these risks – and any financial and reputational consequences.

Unlocking Cost Savings and Efficiency

A more structured approach to tail spend can deliver substantial cost savings and operational efficiencies. By leveraging AI-powered analytics, businesses can achieve savings of 5% to 15% by monitoring spending across departments, consolidating purchases, and fostering competition among suppliers. For a Fortune 500 or Global 2000 company, that can be a significant saving. That a company with a total external spend of $10 billion, for instance. The potential savings from optimising tail spend could exceed $300 million.

AI can deliver enhanced visibility and data-driven insights. These benefitscan allow businesses to improve management of supplier relationships, reduce redundant purchases, and streamline procurement processes. AI-driven platforms, when paired with procurement expertise, can empower organisations to transform supplier matching, compliance tracking, and transaction processing for tail spend – reducing the manual and administrative workload.

Enhancing Compliance and ESG Alignment

Beyond cost savings, optimising tail spend also strengthens compliance and aligns purchasing with broader ESG objectives. Due to the sheer volume of low-value transactions, tail spend often cannot receive the rigorous compliance checks applied to strategic purchases. For many companies, finding ways to more closely manage tail spend helps to reduce exposure to regulatory risks, contract violations, and supplier-related reputational damage.

Enhancing visibility ensures that even low-value transactions align with internal procurement policies, regulatory requirements, and corporate responsibility initiatives. companies find that improving the strategic oversight of tail spend also helps them track compliance for audits, tenders, and internal reporting.

Tail spend optimisation can also support ESG goals by enabling companies to assess the environmental and social impact of their purchases, ensuring alignment with corporate responsibility and sustainability strategies. As stakeholders increasingly demand transparency in supply chain practices, strategic tail spend management helps businesses meet evolving expectations.

Unlocking Innovation and Agility

Unlike strategic spend, which often involves large, established vendors, more effective tail spend management can open access to innovative and agile suppliers by helping businesses to establish relationships with them. Many smaller, niche vendors offer unique solutions that can enhance business operations, drive innovation, and create competitive advantages. 

Many companies tell us they see value in the fact that AI-powered platforms. When used by experienced procurement professionals, these platforms enable them to streamline supplier onboarding, contracting, and management – making it easier for them to vet and engage with innovative vendors. By tapping into these suppliers’ expertise, companies find they introduce new technologies, services, and solutions that enhance their competitive positioning.

The Role of AI and Outsourcing

AI-driven procurement tools, guided by experienced procurement teams, continue to transform the way companies manage tail spend. Advanced AI-powered platforms consolidate supplier data, identify spending patterns, and automate procurement processes. This provides businesses with a centralised and data-driven approach to tail spend management.

Of course, not all organisations can afford to optimise tail spend with their internal resources. To tackle the issue without diverting internal resources, outsourcing this function to a specialist provider can be an effective strategy. Partnering with the right outside provider ensures companies leverage proven procurement expertise, a broader supplier network, and AI-driven analytics to achieve better outcomes. This approach allows businesses to maintain their focus on strategic procurement priorities while ensuring tail spend is handled more efficiently.

A Strategic Opportunity

Rather than being an administrative burden, tail spend presents a strategic opportunity when managed effectively. Businesses that apply the right tools, expertise, and technology, find that they unlock significant value from this area of procurement.

By taking a more structured approach to tail spend companies can turn it into a strategic asset, driving cost savings, compliance, ESG alignment, and innovation. AI-powered solutions and expert guidance can help businesses take firmer control of tail spend, building a source of competitive advantage.

Around the world, geopolitical tensions are rising, trade policies are evolving rapidly, and societal attitudes are shifting. Many companies are now finding the once-predictable pathways of globalisation increasingly replaced by a more fragmented, ‘glocal’ approach. 

This trend, often referred to as reverse globalisation, is not just a temporary setback. Rather, it’s a fundamental rethinking of how organisations conduct business in a world increasingly shaped by protectionism and political uncertainty. And for businesses in 2025, the implications of this shift are profound and varied. For many, it means recalibrating risk management strategies, diversifying service offerings, and improving local capabilities to stay competitive.  

The decline of the global supply chain 

For decades, globalisation has allowed businesses to access affordable labour, scale operations quickly, and tap into new markets. However, this has changed as trade wars, tariffs, and rising nationalism take centre stage. Today, many companies are beginning to reconsider their long-standing reliance on global supply chains. 

At the heart of this shift is the increasing complexity of managing cross-border operations. The uncertainty surrounding Brexit, the trade tensions between the United States and China, and the impact of the COVID-19 pandemic on international logistics have all exposed vulnerabilities within global supply chains. These disruptions have highlighted a dire need for companies to build more resilient, adaptable systems. 

This ‘glocalisation’ strategy is reflective of a broader trend in which businesses are looking closer to home for solutions. Companies are rethinking the long-standing model of offshoring and nearshoring, instead focusing on regional supply chains that are more flexible, more sustainable, and better equipped to weather political and economic storms.  

The logistics sector is a prime example. Crown Worldwide Group, best known for its international relocation services, diversified many years ago to offer solutions to localised client challenges. With a focus on localised logistics, information management, and workplace solutions, Crown has expanded its services. The organisation now provides digital and sustainable solutions that align with the needs of today’s businesses. 

Adapting to geopolitical uncertainty 

The rise of populist movements, the emergence of protectionist policies, and the increasing use of trade tariffs have all contributed to a climate in which globalisation is no longer viewed as universally beneficial. Instead, businesses are having to adapt to a more fragmented world order. Many businesses are scaling back their global ambitions and reconsidering their approach to international markets, placing greater emphasis on regional supply chains, strengthening local partnerships, and prioritising operational resilience over expansion. 

For organisations looking to remain competitive, this shift requires an agile approach. It necessitates a fundamental rethinking of how business is done; one that takes into account not only economic considerations but also political, social, and environmental factors. In this climate, businesses are increasingly turning to procurement strategies that prioritise resilience over scale and localisation over globalisation with the ever present need to consider environmental impact. 

Workforce transformation in a post-pandemic world 

Another crucial component of reverse globalisation is the transformation of the workforce. Since the COVID-19 pandemic, remote and hybrid working have become the norm for many organisations. This shift, accelerated by the COVID-19 pandemic, has fundamentally changed the way companies approach talent acquisition, employee mobility, and office space management. As businesses scale back on international assignments and long-term relocations, they are investing in new workforce solutions that are more localised and flexible.

In response, Crown Worldwide has expanded its workspace services to help businesses optimise their office environments. This includes asset management, covering IT infrastructure, equipment and office furniture, along with recycling and renewal capabilities to support sustainability goals. Beyond logistics, Crown Workspaces also help businesses to create efficient, engaging workplaces that encourage employees to return to office.  

Remote work has reduced organisations’ reliance on physical relocations. However, it has amplified the need for digitalisation – particularly in information management. With hybrid teams and a growing number of digital nomads, organisations must ensure seamless access to critical information anytime, anywhere. Moving to a fully digital system means that organisations can be flexible and responsive to the needs of their workforce, whilst also protecting their future planning. In this sense, workforce transformation is intrinsically linked to supply chain adaptation. Both are driven by the need for businesses to remain resilient and responsive in the face of dynamic change. 

Looking ahead to the future of ‘glocalisation’ 

Looking to the future, while globalisation will not disappear entirely, in the near term it will likely evolve into a more regional model that places greater emphasis on local solutions, supply chain resilience, and workforce flexibility. Companies that make this transition successfully will be those that embrace, rather than ignore, the changing geopolitical landscape, investing in sustainable and digital solutions and empowering local teams to respond quickly to market demands. 

Rather than resisting the changing tides, businesses will need to adopt a more agile and “glocalised” approach to operations. While globalisation is evolving, the world will remain profoundly interconnected – just in new ways. The future of international business will present challenges. But, it will also bring exciting opportunities for those who can adapt. 

The Labour government has published a new national procurement policy statement (NPPS). The statement replaces the previous version from May of last year made by the previous government. 

The new NPPS lays out a series of strategic priorities for public procurement by contracting authorities. Also, the government has published a new and updated round of Procurement Policy Notes (PPNs). These provide detailing guidance on best practice for public sector procurement. 

Gross spending on public sector procurement totalled £407 billion in the 2023/24 financial year. With the recently live Procurement Act 2023 opening new doors for small and medium sized organisations to compete more effectively for government contracts, the stakes and levels of complexity facing organisations looking to engage with public procurement frameworks have never been greater. Likewise, thousands of contracting authorities across the UK are facing a momentous change to the ways in which they operate in compliance with government guidelines. 

We heard from Shamayne Harris, head of procurement at Pagabo — a company that sets up and manages frameworks on behalf of public sector contracting authorities — who provides clarity on some of the essential details and impacts of the new NPPS and PPNs. 

What do you see as the government’s intentions behind the new guidelines? 

“Through the NPPS, the government aims to maximise the impact of the £400 billion spent each year on essential goods and services. The government intends to use public procurement to support the delivery of its missions by kickstarting economic growth, making Britain a clean energy superpower, taking back our streets, breaking down barriers to opportunity, and building a National Health Service fit for the future.

“When delivering procurement, contracting authorities must have regard for the goals within the NPPS, which are the importance of delivering value for money, driving economic growth, delivering social and economic value, and building commercial capability to deliver value for money and stronger outcomes.

“All contracting authorities must have regard to the NPPS as mandated by the Procurement Act. It applies to contracting authorities as defined in section 2 of the Act with the exception of the authorities and procurements set out in section 13(10). These include private utilities, contracts awarded under a framework or dynamic market, procurements under devolved Welsh or transferred Northern Irish procurement arrangements, and devolved Welsh authorities or transferred Northern Irish authorities. 

“In addition to the publication of a new NPPS, we have seen the release of new and updated Procurement Policy Notes (PPNs). The two new PPNs 001 and 002 address SME and VCSE inclusivity and establish procurement spend targets, and take account of social value in the award of contracts.”

What about PPN 001? What are its goals and how will it affect contracting authorities? 

“Essentially, PPN 001 acts as a facilitator for one of the core objectives of the Procurement Act and NPPS – to open up public procurement to new entrants. Historically, there has been a target for SMEs to benefit from 33% of central government spend either directly or indirectly through the supply chain – but this is a target rather than a legal requirement, and data from Tussell suggests that direct spend with SMEs is currently around 20%.

“The difference now is that while there isn’t a mandated target, there is reference to setting a three-year target for direct SME spend from 1 April 2025 (or two-year targets for VCSEs from 1 April 2026) and to publishing annual results, which, of course, are there for accountability. This is all in reference to central government, but we expect to see the guidance trickle out to the wider industry, with other organisations voluntarily aiming for the same standards to ensure best practice in alignment with government.

“As with everything in this procurement reform, wording is incredibly important. Along with new and changing terminology, the Act incorporates a lot of permissive language – in this case that contracting authorities should ‘have a duty to consider’ reducing barriers for SMEs. This reflects that the Act is not there for short-term fixes but is a long-term commitment to change that will require transition.”

And what about PPN 002?

“With social value, there is not a mandated minimum award criteria required for all contracting authorities in scope of the Procurement Act. However, PPN 002 mandates central government authorities must apply a minimum 10% weighting of the total score, to social value where it is relevant and proportionate when the procurement commences on or after 1 October 2025. For procurements commenced under the Procurement Act 2023 prior to this date, in-scope organisations can choose to apply this PPN or continue to use PPN 06/20 during this transition period. 

“When followed, PPN 002 should apply to all stages of the commercial lifecycle, but particularly at the planning and preparation stages. As with the SMEs and VCSEs elements, it’s all about setting a clear direction of travel with a long-term aim to enact change, rather than setting unachievable parameters by expecting overnight change.”

Do you see these new steps as positive for the public procurement sector? 

“Our immediate reaction to the new NPPS and PPNs is that we are pleased to see positive steps being taken in supporting the SME and VCSE inclusive agenda, which is something that we at Pagabo have always championed in collaboration with contracting authority hosts in framework procurement strategies. 

“The NPPS sets out the expectation for the public sector to maximise SME and VCSE procurement spend and demonstrate how this can be delivered via preliminary market engagement, collaboration and transparency through visibility of procurement pipelines, which will be supported by the introduction of new mandated notices for applicable authorities under the Procurement Act 2023. 

“Contracting authorities should familiarise themselves with the new NPPS and PPNs now, to help align their own goals with the government’s strategic goals for procurement. It’s an important period for procurement, so those concerned need to be doing everything they can to understand the changes and implement the processes to ensure compliance and alignment.”

Frameworks have quickly become the preferred route to market for public sector projects. This momentum will continue to grow now that the Procurement Act 2023 has comeinto effect. Now, those procuring and managing frameworks, including the likes of Pagabo, must go beyond the basics to cut through the noise to pave the way for fair, practical and transparent procurement that serves the needs of contracting authorities, suppliers and agents equally. 

A successful framework is one that helps the contracting authority to choose the best organisation to deliver the best value for the project at hand. It should be backed by the a promise of quality and legal reassurance provided through the prior due diligence that’s essential before any awards are made. 

Now, though, it’s not enough to just proudly showcase previously approved suppliers on each lot. More and more frameworks are launching, and standards are set to rise as the Procurement Act moves the industry closer towards the goal of achieving the ‘gold standard’ set out in the Construction Playbook. 

Frameworks should support contracting authorities in making the best choice for their projects. Not doing so just won’t cut it in today’s market, especially with the need for competition essential in many contracts. 

Here lies the difficulty – every job is unique and so will require a different company with relevant resources and experience, making it tempting to pack framework lots full of talented businesses.

However, having too many suppliers can easily become overwhelming and can dilute the demand, making it equally as unattractive for both the contracting authority and the contractor. Instead, all parties need to strike a balance. The key to success is flexibility. Authorities and contractors need to create a framework with processes around it that embody this mindset in every relevant touchpoint. 

Refining the process around frameworks

If a spanner could represent the tool you need for the job, then we view our frameworks as an adjustable spanner and will work with the contracting authority to ensure it fits their needs each and every time. To do this, it requires flexibility on a number of levels – this could be through offering a wide range of appointment options and contracts, such as Direct Award or New Engineering Contract (NEC), or through having the infrastructure in place to cope with the ups and downs of the market, and the vast disparity between each job. 

One way we do this is through our use of a ‘reserve list’ on several of our frameworks. Through this structure, we may allocate nine places on each lot for example, six of which would form the ‘core’ suppliers, with the remaining three forming the ‘reserve list’. We were the first national framework provider to introduce the use of such lists several years ago, with their development being a response to the market. 

Lessons to learn 

We all remember the collapse of Carillion and, more recently, the collapse of ISG, both of which demonstrated that suppliers can go bust in unstable markets even when financials look robust. While evaluations for appointments examine financial stability in bidding parties, it would be wrong to ignore the somewhat turbulent economic waters of recent years. As of December 2024, new Insolvency Service figures showcase the construction industry to be the most heavily affected over the past year for insolvencies. This makes the element of rigorous financial checks more important than ever.  

Plus, with an increase of work across the whole sector, we have seen resources at many contractors tied up, meaning they are not in a position to bid the work. 

In both scenarios, the reserve list comes into its own – enabling competition for contracting authorities when core list suppliers do not provide enough competition by themselves, and providing a wider pool of suppliers should the worst happen for any organisation sitting in a core list position. 

All bidders under core and reserve lists are allocated equally and with the same criteria. In essence, reserve lists have helped to refine the way we manage further competitions and, in turn, mitigate any risk due to market instability.  

On the flip side, offering choice of too many suppliers from the start could deter many contracting authorities from running a further competition, adding more complexity to the labour-intensive process of evaluating a large number of returns. Skilled suppliers may also look to bid for a place on other frameworks where their chances of winning would be higher. 

Value, on a wider level 

There’s a lot to unpack as to why these shocking statistics have become reality and alongside protecting the contracting authorities, we know the frameworks we manage go some way in supporting the sector too, offering one solution to the wider challenge. As part of our commitment to pioneering transparent and ethical procurement, we have other processes that aim to create opportunities for our industry’s next generation and help the built environment sector to grow. 

These include internal processes, such as offering detailed ‘bidder debriefs’ for every successful and unsuccessful contractor, explaining the reason for our decision and offering constructive feedback on how they can make their services stronger. 

Our use of reserve lists also helps to boost engagement and encourage market brilliance when managing frameworks. Having the option to interchange between the core and reserve lists gives more businesses the chance to tender for exciting projects. They also go far deeper, generating social value through creating and safeguarding jobs and facilitating work placements and apprenticeships via successful and ethical procurement strategies.

This year and beyond, public sector procurement will only become more complex as concerns such as safety, security, quality and value for money remain front of mind for every project. The framework market is strong, but to make the right decisions it will pay off to dig a little deeper and search for frameworks that offer the level of flexibility required to meet the demands of the modern world.

The UK’s new Procurement Act 2023 (PA23) went live this week. The new regulations aim to encourage smaller businesses in the private sector to secure a bigger share of £400 billion in public spending each year. Some experts have already hailed PA23 as a “win for Davids over the Goliaths.” Others, however, have warned that new, complex processes risk overwhelming unprepared SMEs. 

With any new regulatory changes, there are new risks. These can range from lost business and penalties for organisations found to be in breach of new rules, to reputational damage for delivering sub-par services. 

In conjunction with PA23 going live, procurement specialist Pagabo has launched a campaign to support the UK’s public and private sectors as they work to adopt and benefit from the latest procurement reform.

TIme to “Act on Procurement” 

‘Act on Procurement’ is simplifying the legalisation within the Procurement Act through a range of resources, including an extensive downloadable guide, explainer video, frequently asked questions and webinars – all created by the experienced experts at Pagabo.  

As well as explaining what changes key stakeholders, including contracting authorities and suppliers, will have to consider, Pagabo’s Act on Procurement campaign explores why 2025 will be a landmark year in the history of procurement legislation and how the well-established procurement specialist can help. 

Shamayne Harris, head of procurement at Pagabo, said: “Through our close contact with organisations varying in size across the public and private sectors, we’re well aware of the different levels of preparedness ahead of the launch of the act. With this in mind, we’ve established a collection of resources to increase access to knowledge and support around the Procurement Act – both from before the Act went live and afterwards – to help others compliantly navigate procurement reform.  

“There are lots of new concepts, definitions and processes for different professionals to familiarise themselves with, which we hope to have made more accessible and actionable.  

She added: “The Procurement Act presents a huge opportunity to increase simplicity, transparency and opportunity within procurement in the long-term, which will help to ensure the public purse is best utilised – making this an important moment in time. With central government continuing to unveil substantial plans for development of infrastructure, communities and public services, the time is now for everyone to pull together and help realise the potential for public procurement to provide value for money, economic growth and social value.” 

The new Procurement Act is set to bring about big changes. To begin with, we can no longer think of procurement and contract management as separate entities. The act will bring about more flexibility, transparency, and will cement current best practice in legislation. However, substantial challenges in its day-to-day delivery are likely to impact its success.

Of course, it’s great to see SMEs at the heart of the act and being granted more opportunities. Nevertheless, we could see them becoming overwhelmed with tenders and the burden of unsuccessful bid costs.

Embracing change

The Procurement Act 2023 has now come into force. The act heralds huge changes in the procurement process that are likely to shake up day-to-day activities and operations. This is particularly true when it comes to contract management. 

The regulatory changes introduced by the act aim to improve public procurement processes, making the system more transparent and flexible. The changes are impactful, and in response, the industry needs to adapt quickly. Organisations must change how they manage projects and gather data to ensure they are compliant with the act’s new guidelines. 

While this change is positive in principle and is rooted in the embedding of best practice in the industry, it’s important to consider that implementing the required changes will not be a straightforward process, and will require time, patience and skill-building. 

First, the positives

The intention behind the new act is positive, and embedding best practice within the procurement process is undoubtedly a step forward. In addition to its benefits for planning, it is also intended to ensure equal treatment, assist proportionality, increase flexibility, and help suppliers achieve strategic objectives. The bidding process will be more flexible, while transparency will be improved through a new central digital platform. Adapting to new processes will also hopefully lead to upskilling across the sector. This would benefit both individuals and organisations in the long term.

In theory, suppliers will also be given visibility of stock much earlier in the process via the new central platform. This would have a positive impact and provide more transparency and opportunity for scrutiny. Having this early visibility means there is more scope to target opportunities and develop business according to supply levels. Doing so would result in a more streamlined and effective process.

SMEs have also been placed at the heart of the new act. Numerous barriers to bidding have been removed. This makes it easier for small businesses to participate and progress in a process that has previously been challenging when competing with larger organisations. 

Despite these positive steps, the practicalities of implementing a new act are far from easy. Procurement professionals will need time to adapt.

Tackling the challenges

When implementing change there will undoubtedly be challenges. As it stands, preparation for the Procurement Act has felt somewhat rushed. We have experienced a flood of guidance, policy, regulations, and more recently, Procurement Policy Notes (PPNs). All this has meant busy procurement teams have been stretched further as they have attempted to get prepared. On the other side, many contracting authorities are also likely to overrun their implementation phases. As an industry, we are also nervous as we await full sight of the new central digital platform.

It’s also important to consider the capacity of industry professionals to dedicate the time needed to these changes. Bid teams across the sector are currently inundated with frameworks. There are alsoquestions over the market’s ability to respond. For example, the industry-wide skills shortage is a huge problem that will only be put under further strain. 

At EN:Procure we have been working with our members to understand what they need in place to best prepare as well as any gaps in their solutions, and we have also offered training to help develop their skills. It’s important to consider that it will take time to adapt and for us to see the results of the act, and that the practicalities will take time to work out.

Another challenge to recognise is the effect removing barriers to SME participation will have. Making the process simpler for SMEs is positive but may also result in a long list of businesses competing in open tender and bidding for work. Short timescales and resources for bidding may also cause problems, and if too many businesses are bidding, processes may need to be adjusted. 

Procurement Act 2023: Only time will tell

Delays in guidance being published, renewed focus on supplier KPIs, and skills shortages across the sector all mean that while it’s a positive step in principle, implementing the new Procurement Act will be a slow process.

With all change comes a period of adjustment, and while the essence of these changes is positive, the level of administration it will take to make them work may be an issue. Time will tell as to whether the Procurement Act will have the impact it has been designed to have, and as a sector it’s up to us to make the most of the opportunity for development it presents.To find out more about Efficiency North, please visit https://www.efficiencynorth.org

If there is one lesson that COVID-19 taught us, it is the importance of planning for the unexpected. For the electronics components industry, this means adopting a flexible supply chain sourcing model to respond quickly to unforeseen challenges.

Following the global semiconductor shortage, governments and organisations around the world rushed to fix their supply chains and prevent future severe disruptions. However, the reality is that achieving complete stability is impossible. Organisations must avoid the trap of focusing solely on past demand. It’s important to remember that today’s needs could be entirely different from those of tomorrow.

Any increased tension can quickly disrupt supply chains, pushing manufacturers to look for alternative sourcing with very little advance notice. The geopolitical impact of the Russia-Ukraine war, for example, would have been impossible to predict. Nevertheless, the conflict created supply chain shock waves throughout the electronics components industry. From transportation issues and trade restrictions to the shortage of raw materials used in semiconductor manufacturing. This was yet another unforeseeable blow to the electronics industry.

We live in a highly volatile world, influenced by various geopolitical and economic factors. These factors affect different industries in diverse ways. It is crucial to have flexible procedures in place that allow for the rapid sourcing of hard-to-find and obsolete components.

Avoiding the Bullwhip Effect is key

Maintaining a surplus of stock can only carry an organisation so far; it will never be entirely sufficient. The over-ordering of stock may seem like a good strategy, but the counter consequences, including higher storage costs, holding costs, and the risk of inventory obsolescence, will stack up (literally) and become more detrimental in the long run. 

This was identified and named the ‘Bullwhip Effect,’ when, as a result of COVID-19, consumers and suppliers reacted and overreacted to anticipated supply and demand, causing inventory disruption across the supply chain. An MIT Sloan Management Review study found that the bullwhip effect can increase inventory costs by up to 10-30%. The fact is, the speculative view from customers, suppliers, and manufacturers about supply and demand can often be very inaccurate, especially in reaction to a disaster or unforeseen circumstances. Yet, all actors involved influence the entire value chain and cause forecasting chaos. 

For certain industries, such as aerospace and defence, which have long and varying production cycles, managing the lifecycle of products is ever more complex. There are continual challenges in ensuring that procedures are established for when components reach the end of their lifecycle. 

Looking at the aerospace industry 

If we take the example of the aerospace industry. The lifespan of an aircraft can last several decades, yet the internal components for these aircraft systems, including semiconductors and mechanical parts, have much shorter life cycles. The prolonged operational lifecycles of military aircraft, in parallel with rapid technological advancements and reiterations, create a dynamic landscape where components risk obsolescence before the end of an aircraft’s service life. This requires organisations in the aerospace industry to adopt a ‘two-speed’ product lifecycle framework that qualifies all component aspects occurring during the complete lifecycle of the system but with flexible replacement procedures for when essential components with short lifecycles become obsolete. 

In both the case of organisations that have fallen into the trap of the bullwhip effect and for organisations with complex product lifecycle requirements, the need for emergency and quick turnaround for obsolete products becomes further intensified. 

So, the question is how organisations can most effectively implement a flexible and reliable electronics sourcing model that accommodates all eventualities and challenges: fluctuating market demand, volatile geopolitical circumstances, emergency scenarios, and complex multi-tier product lifespan requirements. 

It involves establishing and maintaining a dependable, end-to-end value chain, and there are four crucial steps to follow:

Building a flexible end-to-end value chain

1. Select a robust supplier network

This involves thorough research to identify and qualify the right value-chain network. A total network of suppliers, vendors, and industry partners that have the expertise to: 

• help with sourcing standard and specialised parts
• offer engineering design, maintenance, and industry-specific services
• has the capacity and flexibility to handle an emergency, obsolescence, and a quick turnaround sourcing requirement

2. Proactively improve forecasting across the value-chain

Implement proactive and predictive tools and methodologies to predict and monitor potential obsolescence issues and forecast demand patterns accurately. The best scenario is for organisations to invest in advanced analytics, and artificial intelligence (AI) to more accurately and proactively handle demand fluctuations.

Alongside this, organisations should implement electronic data interchange visibility throughout the value chain to facilitate the exchange of inventory and order data between partners and to enhance communication channels.

3. Collaboration and trust 

Successful value-chain management relies on building reliable, collaborative relationships with suppliers. Open communication channels, regular feedback, and joint troubleshooting drive innovation and create a foundation of trust across the value chain.  

4. Continuous monitoring and analysis of the supplier network

Real-time data collection and analysis should be used to track supplier performance against KPIs and identify areas for improvement. Ongoing monitoring and analysis of supplier performance data ensures organisations can troubleshoot and proactively address any potential issues or performance gaps to mitigate risks in the supply chain before they become a problem.

Essentially, what any organisation in the electronics industry should be looking for is one total end-to-end value network that can cover and understand all their sourcing needs, with the versatility and flexibility to adapt to anything on the horizon. 

In uncertain times, with the lingering effects of past supply chain disruptions remaining challenging, organisations, more than ever, must prioritise risk preparedness and resilience in their electronics sourcing strategy.

Procurement, logistics, and supply chain organisations are looking to shift their processes closer to home, as a flurry of tariffs from the Trump administration force the world’s biggest economy into a protectionist stance. As borders become increasingly expensive and risky things to move goods across, organisations are reportedly scrambling for a way to adapt. 

The de-globalisation race

This week, Crown Worldwide Group, one of the world’s largest privately-owned logistics companies, announced that it is refocusing its emphasis for growth on services and divisions that are “inherently local.” 

The business highlighted President Trump’s efforts to slow globalisation further, noting that “Events in the USA over the past several months have reinforced the prevalence of an anti-globalism sentiment.” Flaring tensions between the US and China, Canada, Mexico (its biggest trade partners) and, more recently, the UK and European Union, are reportedly giving Crown, and organisations like it, pause — provoking them to rethink how they do business. Crown’s Group CEO Jennifer Harvey commented: “Our view is that this won’t last forever — but in a business that is both global and cyclical, the last 60 years have taught us to hedge by investing in different business lines.”

Donald Trump has said that he wants to cultivate an American manufacturing renaissance through the introduction of wide-ranging tariffs and tax breaks. Critics of his policies claim that the higher resulting costs from tariffs will result in higher prices for American consumers. 

It’s not just Trump (but he’s not helping) 

Trump may be supercharging the deglobalisation trend affecting supply chains, but he didn’t start it. The trend has started to take shape in the post-COVID world, as organisations look closer to home in order to promote resilience and avoid increasingly common disruptions. 

Crown established its business 60-years-ago in the midst of the mass globalisation of supply chains, as well as the containerisation of freight, and affordable air travel, which Harvey notes created new horizons that now seem increasingly out of reach. “Today, the world is quite different. Fewer people are moving internationally, with technology that facilitates remote work reducing the need for corporate assignments, and geopolitics making moving overseas more challenging and expensive – a trend that’s likely to continue following recent political events in the USA,” Harvey says.

This combination of technological tools affecting the way we work and an environment increasingly defined by global conflict, compounding the lingering economic impacts of the pandemic, (both coupled with simmering anti-migration sentiment) and the rise of far right governments in places other than the US, is also driving the deglobalisation trend. 

“Transitioning supply chains isn’t simple,” observed Eric Linxwiler, Senior Vice President, at TradeBeyond in a recent article. He added out that, in order to respond to tariffs, businesses face the challenge of “establishing new supplier relationships, ensuring quality control, and navigating new regulatory environments requires time, investment, and operational expertise.”

European automakers, pharma manufacturers, and more brace to contend with the threat of an EU-US trade war as Trump announces new metal tariffs.  

Not content with 25% tariffs on its closest trade partners and a further 10% levy on Chinese goods, US President Donald Trump has announced a flurry of new trade restrictions on goods from the European Union (EU). 

Overnight, President Trump announced 25% tariffs on foreign steel and aluminium. The move has prompted retaliatory measures from the EU, with president of the European Commission, Ursula von der Leyen saying that she “deeply regretted” the US president’s decision, adding that “Unjustified tariffs on the EU will not go unanswered,” and that the EU would respond with its own economic sanctions to “safeguard its economic interests.” Von der Leyen added: “We will protect our workers, businesses and consumers.”

Procurement thrown into disarray

Approximately 25% of EU steel exports go to the US — about €3bn worth a year over the past decade. Canadian prime minister, Justin Trudeau — whose government responded with its own retaliatory tariffs on the US last week — said that Canadians would “stand up strongly and firmly if we need to.” He described the Trump administration’s move as “unacceptable”.

The latest round of tariffs could be the next domino to fall on the way to a worldwide trade war, severing international ties, and driving up prices for consumers in multiple markets — especially the US. If Trump’s tariffs continue to alienate the US’ trade partners, Simon Bowes, CVP Manufacturing Industry Strategy EMEA at supply chain solutions company Blue Yonder, notes “it could set off a chain reaction across the globe.” He adds: “This could limit the ability of companies to leverage the global specialisation and expertise that currently drives international trade. For instance, the world’s reliance on Taiwan for semiconductors or Germany’s expertise in automotive engineering would become more complicated if countries erected barriers against each other. The rise of tariffs would likely stifle competition and innovation, and while some industries could benefit from protectionism, others would undoubtedly face higher costs and reduced market access.”

Manufacturing procurement braces for disruption 

The impact of Trump’s administration on some European industries like pharmaceuticals, Bowes explains, may force businesses into “a catch-22 dilemma.” 

He explains that organisations must “either bear the cost of relocation or absorb the tariffs and face increased costs for manufacturers and consumers.” 

The automotive market in Europe is particularly at-risk, with the industry already “struggling due to competition from China,” as well as the withdrawal of electric vehicles (EVs) subsidies from key markets, and the ongoing transition to European sustainability regulation. “The US is a critical market for European car makers,” says Bowes. Therefore, “tariff threats are sending the industry to boiling point — and if placed on internal combustion engine vehicles (ICEVs), it would put a tin lid on everything that’s going bad for the industry. Increasingly, automotive businesses are having to plan for a potential future with dramatically reduced sales to the US.”

What’s next? 

Whatever the long-term consequences, Rob Shaw, GM EMEA at Fluent Commerce, notes that short term consequences are a global supply chain in chaos.“The trade market can only be described as an unstable, ever-changing state,” he says. Should the US proceed with imposing more and more tariffs, “other countries will retaliate, as we’ve already seen with China. In this scenario, tariffs may be imposed in the opposite direction, raising costs within the supply chain.” 

Ultimately, he adds “it’s consumers who will bear the brunt of these changes. To protect their profit margins, businesses will inevitably pass on higher costs, placing additional financial strain on buyers already struggling with economic pressures.”

Procurement professionals are at varying stages of readiness for the Procurement Act 2023 (PA23), which is set to come into force on 24^th February. The Act introduces a considerable number of changes and requirements affecting public sector procurement processes. 

Our recent survey of procurement professionals (Finance & Procurement Trends Report 2025) reveals that fewer than one in five (19%) believe their organisation is well prepared for PA23 implementation. Concerningly, 14% said they were either poorly prepared, or not at all.

PA23 will affect procurement professionals working in public sector organisations directly. The private sector will also be impacted on the supply side. Any organisations that supply or seek to supply a public sector organisation with goods and services will need to be ready. Getting ready will require understanding and preparing to mee the Act’s new requirements. The Act covers “bodies governed by public law” which includes organisations like National Highways and Network Rail. It also covers local authorities and councils, schools, the NHS, universities, blue light organisations, social housing organisations, and utilities. 

Public sector spending ammounted to £407 billion gross in 2023/24. Therefore, any non-compliance or dragging of feet with the changes will have a significant potential fiscal impact on supplier businesses.

PA23 for suppliers

For private companies that are already supplying the public sector, or wish to explore new business opportunities with this valuable customer-base, PA23 will bring potential opportunities for increased participation in public contracts. The Act encourages a more open, transparent, and competitive bidding environment, which should benefit these organisations. It’s an unprecedented level of insight into bidding opportunities and decision-making criteria. In theory, it will enable businesses to better tailor their proposals to meet specific public sector needs. Those that take advantage will dramatically enhance their chances of success.

PA23 introduces simplified procedures, which can lead to quicker decision-making and reduced lead times for contract awards. This agility is beneficial for private companies seeking to engage with public sector contracts, as it allows for more efficient allocation of resources and faster project initiation.

The Act will also help the private sector by strengthening provision for prompt payments. Even the largest enterprises benefit from being paid on time. It allows them to manage their cash flow and resource allocations to optimum effect. At the same time, however, late payments can make or break a business. Smaller firms have even smaller margins for error. 

According to data shared by the UK government, 52% of SMEs (around 2.8m businesses) suffer from late payments. This costs them £22,000 each year, resulting in around 50,000 business closures every year. 

Benefits for small businesses and social enterprises 

The Act is designed to improve and streamline the way the public sector procures goods and services. Therefore, it contains specific benefits to businesses not currently engaged in supplier contracts with this sector. Crucially, it provides them with a clear framework when bidding for contracts. With a focus on levelling the playing field, the Act will help small businesses, start-ups, and social enterprises gain an important foot in the door. This will in turn enable local public sector bodies to achieve their own supplier and sustainability targets related to adding social and economic value within the local economy.

As a private sector organisation, it’s crucial to understand how these changes will impact your operations. It will be critical to prepare for the opportunities and challenges that may lie ahead. It will require investment in time and other resources to adequately prepare in order to unlock potential new revenue streams. The government is providing lots of help for organisations that already trade with, or are seeking to trade with the bodies that fall under PA23, to help them ensure compliance. 

PA23 for the public sector

Public sector procurement teams have been working hard to get up to speed with the changes required by PA23. Understanding and implementing these has undoubtedly placed a significant burden on organisations, requiring them to invest in additional resources with redirected focus. We found 57% of the procurement professionals who contributed to our survey expect to be managing an increased administrative burden because of PA23. 

It might be easy therefore to lose sight of the potential benefits the Act will bring to local authorities and other public sector bodies.  PA23 will help them achieve more transparency and accountability from their suppliers, to ensure better value for the public purse and higher quality service delivery, thus helping them achieve their own core objectives.

The compliance challenge 

Procurement professionals recognise there will be specific challenges as they start to work within the requirements of the Act, and 50% of those in our survey said the biggest obstacle would be ensuring ongoing compliance monitoring. This was followed by ensuring supplier compliance (44%), adjusting current processes and systems (41%), and understanding the new requirements (37%).

In response to the new requirements, 60% have already begun implementing new compliance measures and 59% have been revising procurement policies and procedures. Half (49%) are training staff on new regulations, while 37% are investing in technology to help improve processes and ensure they conform with the requirements of PA23. 

To make this less of a headache for already stretched public sector organisations, the Government has published some useful guidance. As a provider of sector-specific and PA23 compliant procurement solutions, OneAdvanced has created an online Procurement Act hub, providing more information including a video, white paper, and other resources, as well as specific information for charitable organisations.

We would urge any supplier or public sector procurement leaders to consider using appropriate digital solutions that are already PA23 compliant to do much of the heavy lifting for them. 37% of respondents in our survey are already investing in new technology to ensure they are ready, selecting solutions that provide assurance that every step of the procurement journey is compliant with the requirements of the Act. 

Winning with PA23 in 2025

There are bound to be some teething problems as organisations get to grips with the changes coming this year. But the benefits should make the trouble worthwhile. 

For suppliers, PA23 opens up the procurement process, with greater transparency around opportunities with new and existing customers. 

For local authorities, meeting the requirements of PA23 will have a number of benefits. It should encourage greater collaboration between departments, eliminating duplication and achieving better value for money. The Act also embraces an important shift away from the Most Economically Advantageous Tender (MEAT). Instead, it promotes procurement that focuses on the Most Advantageous Tender (MAT). This distinction will provide greater flexibility for procurement to consider suppliers and contracts on the basis of criteria beyond price. Particularly, buyers can pursue suppliers based on things like social value which may be better for their local economies. 

The increased transparency will eradicate cronyism, and accusations – founded or unfounded, of unfair contract decisions that can plague leaders. It will also improve the experience and quality of service delivered to the citizens that rely on them.

The most important thing to remember is that there is still time to make preparations before the Act goes live. There are multiple resources available out there to help organisations in both public and private sector. These will enable them to focus any financial investment on implementing the most effective, compliant digital tools that will earn their keep from day one of PA23. 

This new legislation has the potential to improve procurement and supplier relationships, ensuring your public sector organisation, or your business as a public sector supplier, can achieve its organisational and financial goals.

Once, if you could afford it, a supersonic flight on Concorde would get you from London to New York in just under three hours. Today, it takes around eight hours. In this world of constant advancement there aren’t many areas where things regress, but how fast we can travel around the globe is one of them. The other, it seems, is the ability of organisations to use Category Management as a key enabler of organisational success. 

Category Management used to be one of the core approaches behind strategic procurement. Today, progressive companies still place Category Management at the center, but increasingly are failing to realise the same benefits that were once commonplace. This raises two very big questions – what has changed and what can we do about it?

Category Management Entropy 

It seems ‘Category Management entropy’ has taken hold and threatens procurement’s ability to make meaningful impact to the organisation. Without anyone noticing, there has been a steady decline in the ability of organisations to deploy Category Management effectively, and a regression in the advanced capability needed to make this happen. Yet, procurement teams still boast they are doing it, ignorant of what is missing. 

Look at many of today’s organisations that cite Category Management as part of what they do and peel back the layers to see what’s going on. Chances are, you’ll find a lack of understanding of what a market facing category is, meaning people are working at the wrong level, with effort focused around doing little more than running RFPs and renewing contracts; perhaps with some reactive stakeholder engagement and production of underwhelming category strategies. The idea that Category Management can bring breakthrough benefits seems to have become little more than a myth and legend of yesteryear. Worse is the general decline in strategic procurement capability across the board, coupled with the misguided belief that people are doing it well and you have the perfect recipe for good procurement. This results in sliding back to little more than tactical buying, with a fancy name. But why does no one notice? 

Forgetting the art of the possible

There are many causes of Category Management entropy. The biggest of them, or so it seems, is that executive teams have lost sight of the art of the possible – they don’t know what they don’t know. Once, those in senior roles could boast first-hand experience of Category Management delivering step change benefits and if they couldn’t, someone in their peer group could and would tell them what they were missing. Since then, our industry has churned significantly and the art of the possible seems to have faded away. 

Category Management, when well implemented, has long since proved what it can do for an organisation – new competitive advantage, increased brand value, dramatic cost reduction or price rise mitigation, unlocking innovation and value, reduced supply side risk, sustainability and, for the public sector, new value to citizens, patients and pupils etc. Indeed, I’ve supported Category Management programs in some of the biggest companies on the planet.

As a result, I’ve routinely seen first-hand, companies with a $10bn spend drive out in excess of $1bn in savings. Not to mention unlocking all the other new forms of value from the supply base at the same time. I’ve led category projects, trained and coached teams, helped executives establish good governance, developed what has become the leading methodology, and written the books on the subject that are taught in universities the world over. Despite this, I’m left puzzled about why organisations have lost sight of what’s possible. I believe this is a product of the seismic shifts in our world, our industry, and those in it, that we have all experienced in recent years.

Why have we gone backwards?

The four misconceptions

I frequently find myself in the C-suite advising executives in how to make Category Management happen. Rewind ten years, the conversations in the board room were along the lines of ‘we want what that company over there has achieved… how do we do it.’ 

Today, the conversations are very different and more ‘Surely Category Management can’t do that, we need a new approach’ closely followed by ‘which bit of tech can I buy to do this for me? Push further and it seems the reason organisations are falling so far short when it comes to Category Management is down to four misconceptions:

Misconception #1 – Category Management is outdated – It is not! 

Don’t believe anyone telling you that, because chances are, they’re probably trying to sell you something! Good Category Management is built upon fundamental economic principles and theory of organisational change. Those are not going anywhere anytime soon. What has changed, and will continue to change, is the context, the macro-environment, and how data, digital tools and of course AI, can support us.  

Misconception #2 – The tech and AI will do it all – it will not, there is no magic button! 

Digital tools are fast becoming how we will do Category Management. Another fast-moving thing is the mob of tech companies running towards us, working to convince us the only thing we now need is their platform. Companies are being seduced into redeploying precious budgets away from training – even people in favour of the tech promise. However, the once shiny thing is quickly tarnished when it fails to live up to the promise of data availability and doesn’t integrate with wider tech in the organisation, or it produces unverifiable ‘somethings’ for the handful of now junior practitioners left. The hard reality here is there is no magic button.

Good AI powered digital Category Management tools such as the Capella Guided Category Strategy Creator^® are undoubtedly the future of Category Management. But success lies in making the tech, and especially AI, one of the team, not their replacement, with a plan to integrate it into wider systems and data.  

Misconception #3 – We’re all a bit busy, we need shortcuts – there are none! 

Our ever-shorter attention spans are changing how organisations function. At the heart of good Category Management is a comprehensive multi-step process requiring extensive cross-functional engagement. Even using the latest digital tools or collaboration tech, it’s not something you can shortcut if you want breakthrough. Yet, I frequently find myself getting asked for a ‘quick and dirty’ version requiring a fraction of the time without needing to bother the rest of the business. This is possible but won’t deliver anything beyond small incremental benefits. Another reality is that to get step change benefits, you need to put the effort in. 

Misconception #4 – Surely we don’t still need to train people? Yes you do! 

Good Category Management skills are the rarest of procurement capabilities, and those with them are the most expensive hires, meaning we need to develop the talent we already have. But such skills don’t just happen, nor can professionals aquire them with just a few elearning modules or by taking short courses on LinkedIn. Advanced Category Management capability, together with advanced negotiation, AI and data capability, are the critical skills needed for strategic procurement today. This is only possible by investing in deep learning and development, combining extensive training with guided practice and ongoing coaching. Once again, there are no shortcuts here.  

Restoring excellence and rediscovering breakthrough benefits

So how can we reverse Category Management Entropy and return to the era of breakthrough benefits? There are five areas to focus on:

1. Process and analytics – Be clear what good Category Management is and drive business wide adoption of one universal best practice process with supporting analytics (eg such as the 5i^® method). This must become a common framework that all live and breathe, and must be the backbone to either a latest generation digital solution or traditional Category Management. 
2. Data and information – Before rushing out to buy the latest tech, build a strategy for data and information. Consider what you need now and in the future, what you need to own and manage, and what you will source. Then, consider how best to acquire this and integrate to your Category Management solution. Think less about buying into applications that serve up the data, but sourcing the raw data that feeds your Category Management tool or deployment. Finally, maybe hire a data scientist or two to become more data driven. 
3. AI as part of the team – Grasp the power of AI to become a part of (not to replace) the team to support data gathering, analytics and generating key outputs. Equip the team with the skills to be power users of AI, to mitigate the risks and verify what it does within the broader process. 
4. Talented, highly capable people – Build and maintain advanced Category Management capability 
5. Governance – Establish solid governance with oversight of all category projects to drive process rigour, manage progress, track benefit delivery and share successes.

Jonathan O’Brien, CEO of Positive Purchasing Ltd, is a leading expert on procurement, and works with global blue-chip organisations to help transform their purchasing capability. He is also the author of Category Management in Purchasing.

For Chief Procurement Officers (CPOs), risk management is becoming an increasingly important initiative. The procurement function has traditionally been associated with cost savings and supply chain efficiency. However, procurement leaders must now adopt new roles. Increasingly, the function is essential to mitigating risks in areas such as digital resilience, AI ethics, and sustainability. 

The regulatory landscape is becoming ever more complex. In January, both the Digital Operational Resilience Act (DORA) and the second phase of the Corporate Sustainability Reporting Directive (CSRD) ² became applicable in the European Union. A key element of complying with these new regulations is managing risks from interactions with third parties. This is why procurement teams need to be involved in the process. 

If risks materialise, they can have significant financial and operational implications. For example, a supplier’s financial instability could result in a number of issues. These could include longer lead times, quality issues, or even the need to find an alternative partner at short notice. Often, this comes at a premium cost. Non-compliance with regulations can also result in hefty fines, legal action, and reputational damage. Since being introduced in May 2018, the General Data Protection Regulation (GDPR) has resulted in over €5.5 billion of fines. 

Integrating risk management into the procurement process

A good foundation for procurement teams to manage third-party risk successfully is to clearly define how risk management will be incorporated into the procurement process. For example, should due diligence be carried out at the sourcing stage, or at the onboarding stage after a supplier has been selected? If a risk has been flagged, what controls need to be in place to prevent an order being raised with that supplier until the appropriate risk mitigation is in place? 

Process design decisions such as these are further complicated in global companies. These organisations have to contend with the fact that local markets often have different regulations and systems architectures. A “core model” needs to be defined and standardised. This way, procurement can adhere to global compliance requirements, while staying sufficiently flexible to cater to nuances in local markets. 

Selecting the right software

Most companies have already defined what risks they want to manage and how they want to quantify them, but how easy it is to standardise that process depends on the software being used. 

Selecting the right software can be complex. There are risk management modules offered by software companies whose core product focuses on procurement, but also point solutions on the market that can be integrated with Source-to-Pay software. The best third-party risk management (TPRM) software enables companies to automate the process of sending due diligence questionnaires to third parties, scoring the responses, and validating risk data from external sources, such as credit ratings. 

Deciding which software is right for the business depends on many factors. These include budget, integration requirements, and the level of customisation required. It is worth investing the time to evaluate the strengths and weaknesses of the different options. 

The business case for implementing TPRM software can be easily justified by the avoidance of regulatory non-compliance fines; GDPR penalties, for example, can be up to four percent of annual global turnover.

Winning hearts and minds

One of the biggest challenges for CPOs when it comes to managing risk is communication. Risk assessments need to be completed by a large number of internal business stakeholders and third parties. 

Explaining what information is required, why it is important, and tailoring that messaging to people with different roles can be a challenge. For example, finance teams might focus on cost implications, while legal teams might prioritise compliance. There is also a delicate balance to be struck between mitigating risk, and not delaying business critical requirements. 

Risk management should be presented as a process to enable operations in a compliant and responsible way, rather than as a potential obstacle. It helps to have a dedicated change management team to explain to business users and suppliers why risk management is important, using practical examples. Building positivity around the initiative will increase the likelihood of TPRM being successful.

The benefits for Procurement 

Implementing a TPRM process can deliver a host of benefits for the procurement function. This is in addition to minimising the probability of operational disruption and financial losses.  

Encouraging third parties to consider risk might result in more collaborative commercial partnerships. It can also drive discussions around product innovations such as sustainable packaging or locally sourced materials. Building the company’s reputation as an ethical brand can improve customer satisfaction and competitive advantage. By driving initiatives that create revenue growth, procurement teams will raise their profile to a more strategic level. 

Conclusion: risk management as a priority in 2025

TPRM will be especially important in 2025, with DORA and the second phase of CSRD becoming applicable in the EU from January. There is additional EU regulation on the horizon: the Corporate Sustainability Due Diligence Directive (CSDDD) will become applicable in 2027⁴. Policy changes by the Trump administration may also have a potential impact on global supply chains. 

We are living in an era of heightened uncertainty and complexity. Risk management is no longer just a box-ticking exercise for Chief Procurement Officers. It’s a strategic imperative. By embedding risk management into procurement practices, CPOs can achieve a number of critical goals. They can enhance supply chain resilience, protect financial stability, ensure regulatory compliance, and uphold their organisation’s reputational goals. As businesses continue to navigate an unpredictable landscape, the ability to manage risk will set successful CPOs apart as true strategic leaders.

Third-party logistics organisations may be plagued by “significant operational gaps,” due to a lack of digital adoption. New research from TEG found that just one-third of 3PL companies are using eSourcing technology. The report found that more than 80% were only conducting “limited supplier audits,” according to the report.

A growing number of UK organisations are turning to 3PL companies as they seek to unlock an array of benefits, from increasing visibility into costs and access to 3PLs’ more extensive infrastructure, to scalability, flexibility, and new technology solutions. 3PL providers bring specialised knowledge, tools, resources, experience, and software to organisations which may be facing supply chain pressures. However, TEG’s report argues that these 3PL companies aren’t adequately embracing the necessary digital technologies to meet the operational demands of an increasingly challenging sector.  

Mounting challenges, widening gaps 

Road freight operators face mounting challenges in 2025, from driver shortages and new emissions regulations to the cost of transitioning to greener fleets and fluctuating fuel prices from the US’ burgeoning trade war. The TEG whitepaper outlines how 3PL companies can address these gaps through enhanced carrier management processes to boost supply chain efficiency and sustainability.  

“As road freight operators deal with rising costs, tightening regulations, and sustainability demands, 3PLs are searching for new solutions to old challenges. As the foundation for building resilient, efficient, and future-ready supply chains, optimising operations across technology, compliance and sustainability is key,” said Lyall Cresswell, Founder & CEO of TEG. “Making these solutions an essential part of day-to-day operations isn’t just an opportunity, it’s becoming a necessity. The time to adapt is now.”

Opportunities for development in 2025 

TEG’s report identifies four key areas where 3PL companies can develop their operations to plug widening gaps. 

• Technology adoption potential. Only 33% of 3PLs currently use eSourcing technology when procuring carriers, indicating a significant opportunity for digital transformation.
• Compliance enhancement. 83% of 3PLs audit less than 10% of their sub-contractors annually, highlighting opportunities to strengthen carrier validation processes.
• Sustainability development. Two-thirds (67%) of 3PLs identify sustainability as a pressing procurement challenge as new emissions regulations reshape carrier requirements.
• Skills development. 83% of personnel responsible for carrier procurement receive no formal training, hindering strategic carrier selection and relationship management.

The whitepaper provides a detailed roadmap for 3PLs to enhance their procurement practices. Steps detailed include implementing strategic sourcing, automating tactical procurement, and strengthening supplier auditing processes.

The past five years have seen a generational shift in the way we approach procurement. The act of buying has shifted gears from backroom to board room, from pedestrian and functional to an essential lever for strategic value creation. Much hay has been made by many people (including myself) about procurement’s transformation. The phrase “glow up” has even been thrown around by some (not including myself), with an implicit understanding that the days of staid, reactive, tactical purchasing are behind us, and we are all now hurtling towards a shining future of strategic procurement. 

Talk to Benn Godfrey — who most recently served as the vice president of procurement at Rolls Royce — however, and he’ll pull the rug out from under that line of thinking. “I almost dislike the word ‘strategic’ at this point. What I mean is that it’s so overused—it starts to lose meaning and undermine understanding,” he explains. “We often undervalue things that are tactical.” Godfrey continues, noting that there can be this perception in the industry that “tactics are bad and strategy is good.” However, “in reality,” he explains, “the two are deeply intertwined.” “In the current supply chain environment, of course, you need a plan. However, an increased emphasis on ‘doing’ is just as important.” Adaptability, agility, resilience, are all critical for survival in this modern procurement milieu. 

Godfrey and I sat down to explore how the balance between tactical and strategic procurement affects everything from aligning the function with the business’ goals to fostering resilience. 

Tactics and strategy — Striking the balance 

At its core, Godfrey explains, procurement is about problem-solving. It’s what drew him to the discipline in the first place. He explains: “You identify the problems and figure out how to fix them. Actively seeking out bigger problems to solve became an accelerator for me. Then it was about thinking: What tools do I need to solve these bigger problems?”  Godfrey also highlights the usefulness of considering leverage in how to scale the solutions, categorising leverage areas as “people, time, capital and, increasingly, digital technologies”.  

You can plot every business’ ability to solve problems along a maturity curve, and finding the right balance between the long term goals and shorter term tactical decisions that will help the organisation reach those targets is critical.

“The key is understanding what’s important for your business and aligning your procurement approach accordingly,” Godfrey explains. “Some organisations encourage constant experimentation, while others rely on iterative improvements to well-established standards. It’s about balancing the need for innovation with the appropriate level of control and pace.”  Considering then, that tactics and strategy go hand in hand as a cyclical process over time – OODA loop or the Deming cycle – whichever model floats your boat, or flies your plane, this way of thinking has common elements, such as sensemaking within a changeable external environment, taking actions and then resetting the cycle in an iterative way which makes them relevant to today’s procurement in an uncertain world.

Navigating the supply chain

Many industries, he notes, face similar challenges when managing supply chains. Some of these are tied to common structures and complexities internally, and others are rooted in the broader economic and geopolitical context of the market — currently, worldwide concerns over incoming tariffs from the US and the Chinese government’s recent restriction of key mineral sales abroad are putting pressure on many organisations’ ability to secure the raw materials they need. Regardless of industry, Godfrey explains, “the goal is always to match the approach to the business’ needs.”

Naturally, different stakeholders will advocate for different requirements, which can affect tactical procurement in the short term and learning to talk about procurement in this new way can represent a challenging learning curve for organisations. “For example, the CFO will expect cost reductions and improved cash profiles, so you have to deliver on those fronts, but procurement obviously involves so much more—resilience, leveraging insights from external supply chains, fostering innovation, and driving sustainability,” he notes. “It’s then about talking about what you do with the money saved,’’ and as such the opportunities this enables are increasingly where value is found, but nevertheless requires an openness in communication and experimentation.

Of course, the risk of overly focusing on the short term tactics of procurement risks losing sight of longer-term objectives. However, the inverse is also true. Godfrey points to many organisations’ long-term, ambitious net zero targets — many put in place with no clear, roadmap of how to achieve them. “Back when the Paris Climate Accords were signed in 2015, there were grand net-zero targets set, and everyone had long-term strategies. But tactically, for many, it’s been harder to implement short-term action, and now many of those targets are at risk of falling apart,” he says. 

Shaping procurement

Nevertheless, he still argues that “having big goals is a good thing. It inspires action, but you have to take things one step at a time and must guard against complacency as a leader.” Godfrey emphasises the need to ensure that the team is also empowered to take decisions and to act. The true role of a leader, he says, is to serve as an enabler and catalyst.  Looking around at the tactical and day-to-day to see where changes can be implemented quickly is vital. “You need to build something tangible,” he stresses. “We’ve talked about sustainability, but procurement can also shape the future in other ways. Take cost reduction or relocating a global supply chain as examples. If the process seems too hard, we could give up. But the better approach is asking, ‘What can we change to make it work?’ 

This way of thinking can be applied across a diverse range of topics important to the procurement agenda, whether it’s supporting the next generation of talent to enter the function or shaping net zero technologies and gen AI to deliver meaningful impacts. Godfrey is keen to stress this idea by sharing examples of the work he does in supporting organisations such as the social mobility foundation, initiatives like the King’s Trust, or acting as a mentor to net-zero technology and digital startups.

Collaborative approach

Godfrey argues that, while these investments of time and effort may not offer immediate returns, they’re well worth it in the long run and that giving back experience in a collaborative manner is the way forward. “Material science and digital technologies are key areas of development for industry, especially within the context of energy transition and while not all of these innovations will succeed, one or two might just make a significant impact. This idea of building stepping stones applies not only to supplier relationships but also to people and technology.” Connecting these threads isn’t solely an altruistic act however, it also, Godfrey notes, keeps him at the forefront of developments in the supply chain – “adding to and sharpening the tools in the problem-solving tool bag’’

Resilience is more than risk management  

One way in which a lot of the discourse around tactical-versus-strategic thinking in procurement flows concerns the goal of mitigating disruption. Godfrey is keen to stress, however, that tactical doesn’t always mean reactive. There’s a difference between a tactical approach to cultivating resilience and simple risk management. “The concept of resilience is far more powerful than risk management,” he explains.

“Risk management tends to focus on what could go wrong—identifying, ranking, and rating potential issues on a very long list. It’s a static, somewhat depressing exercise that’s hard to convince others of, especially when you need to justify spending time or money to prevent something that may never happen.” Resilience, on the other hand, is about sensing and anticipating what might prevent you from operating, implementing mechanisms for absorbing sudden shocks, and taking actions to adapt. “You spend time considering the impacts on the business and how to protect it,” Godfrey explains.

“In the event of a crisis—whether it’s a pandemic, a ship stuck in a canal, or war—you need mechanisms in place to remain flexible and adaptable.” Tactical, short-term capabilities and responses to immediate problems, but focused on the longer-term strategic goal of recovery and resilience, rather than simply trying to anticipate and avoid every possible form of disruption. 

Optimising supply chain inventory

“It’s not about listing all the risks; it’s about developing a plan that enables you to continue operating under adverse conditions,” says Godfrey, firmly drawing the distinction. “You need to think through processes, set up adaptability, and put measures in place to manage disruptions—whatever they may be.” One of the keys where a specialised producer like Rolls Royce is concerned, Godfrey explains, is considering how to optimise supply chain inventory, where the cash is tied up and decisions on holding raw materials in their base form. “It takes longer to respond to an immediate issue, but you have effectively traded speed for increased flexibility. If you have secured nickel, for example, you can direct it where needed. Once it’s processed into a finished product, it’s locked into a single use.” 

While he notes that it’s tempting to respond to shortages by increasing inventory at every point, that level of redundancy reduces agility, drives up costs, and generally isn’t feasible or practical. “Instead, build resilience into the supply chain at critical points where you can pivot quickly if needed — build a strategy that lets you respond tactically,” he says. 

The future of procurement demands tactics and strategy 

The pace of change in procurement and supply chain management feels faster now, Godfrey reflects, largely because of the influence of modern technology. “Technology accelerates information flows and amplifies perceptions,” he adds. Godfrey also notes that recent global events may have felt era-defining, each driving change and challenging assumptions in its own way: “Procurement processes have had to become more agile and responsive, leveraging automation and building flexibility into supply chains. The goal is for supply chains to bend rather than break under stress.” Sacrificing lean speed for the ability to change; learning to respond to any problem rather than trying to avoid every problem; resilience and adaptability are what will set successful supply chains apart from those that fail. 

However, while these events have prompted some to accelerate shifts in procurement practices, they’ve also highlighted the need for more considered, balanced responses. “You have to have the long term vision and the tactical short term understanding coupled with a bias for action,” he says, it is important at the same time not to over-correct in response to a shortage or perception of risk thus exacerbating the overall effect within a market. One step at a time towards the future. “Do what you can with what you have, wherever you are. It’s a quote from Theodore Roosevelt which sounds obvious, but it’s powerful. Whenever I’m stuck, that’s the mindset I return to: we know where we want to go, but what can we do right now? What’s the first step we can take?”

A new report by UK watchdog the National Audit Office (NAO) has highlighted ongoing issues with the ways in which the country’s public sector approaches IT procurement. 

According to the report, the Government has the potential to achieve meaningful cost savings by changing the way it engages with technology suppliers. But it will only do so if it “learns from its past procurement approaches to large-scale digital transformation projects”. The government’s past projects, the NAO argues, were riddled with mistakes, resulting in “decades of poor progress” and billions in mismanaged spend.

“Government needs to rethink how it procures digitally, including how to deal with ‘big tech’ and global cloud providers that are bigger than governments themselves,” commented Gareth Davies, head of the NAO. 

The £14 billion problem 

The NAO’s report highlights the fact that the UK government spends approximately £14 billion annually on digital procurement — a figure that has crept up over the past decade — with “mixed” results. The report suggests that a lack of technical expertise within government is at least in part responsible for the public sector’s mismanagement of the shift towards managed service models.

With the market shifting towards cloud-based platforms and SaaS models, the NAO argues that traditional models of outsourcing or creating government-owned assets are giving way to subscription-based models such as the use of cloud services. The government, they argue, has been slow to adapt to this new state of affairs. As a result, the report argues that the government needs to rework the the ways in which it engages with and manages suppliers. The government needs to define “a comprehensive sourcing strategy for the digital age” which, specifically, redresses the government’s approach to dealing with large technology vendors.

“Government has a long-standing need to improve its use of technology suppliers, and its slow progress in doing this has contributed to poor outcomes in its attempts to modernise government,” adds the report. 

In a press release, Davies criticised a “lack of digital and procurement capability within government”, which he argues has resulted in wasted expenditure and lack of progress on major digital transformation programmes.”

The second inauguration of President Donald Trump will take place on January 20th. The incoming president and convicted felon has made a series of promises on the campaign trail regarding his plans for the start of his administration. 

Among other claims, Trump has said that, during the first 24 hours of his presidency, he will close the US’ southern border and reinstate travel bans, carry out mass deportations, pardon insurrectionists who took place in the attempted coup on January 6th 2021, roll back federal regulations on fossil fuels, and scupper the meagre steps the country took towards environmental legislation during the past four years. 

While it may trail Trump’s other promises in terms of potential to inflict human misery and economic disruption, organisations in the US have spent the past month scrambling to prepare for another of his threats: tariffs and a new trade war with China.

The president-elect promised back in November that planned to implement 25% tariffs on Mexico and Canada, as well as an additional 10% tariff on goods made in China, on his first day in office. Reports from December found that such measures would likely create sweeping supply chain disruptions, resulting in higher costs for customers and potentially destroying US businesses. 

Whatever happens, there’s no doubt the impact on procurement and supply chain sectors will be profound. 

How do tariffs work? (Spoiler Alert: Not the way Trump says they do)

Despite his claims that tariffs will help grow the US economy, raise tax revenues, and protect jobs, almost all economists have agreed that this rhetoric (including Trump’s statements that his tariffs were “not going to be a cost to you, it’s a cost to another country”) is misleading. 

In reality, a tariff is a domestic tax levied on your own country when businesses and individuals purchase goods from overseas. Government then leverages a percentage of the total value of the goods when they arrive on US soil. Then, the importer pays the tariff. Not the foreign entity. 

Essentially, if a US company wants to purchase $1,000,000 worth of consumer goods from China at a 30% tariff rate, the Chinese company still gets paid $1,000,000. When those goods arrive in the US, however, the US company taking receipt of the goods will be forced to pay the US government an additional $300,000. 

Over the course of 2023, the US imported approximately $3 trillion worth of goods, equivalent to roughly 11% of the country’s GDP. 

“During his first term, Trump often used the threat of tariffs as leverage in trade negotiations, but didn’t always follow through,” notes Rob Carlisle, Associate Partner at operations transformation consultancy Argon & Co. 

The higher price of protectionism

Carlisle argues that, “if we take Trump’s campaign rhetoric at face value, the United States may impose tariffs at levels unseen since the 1930s, having a seismic impact on trade relations as we know them today.” 

He adds that, with Trump potentially considering tariffs of 10-20% on all imports and a staggering 60% on goods from China, these measures “would likely hit electronics, apparel, and toys hardest – sectors heavily reliant on Chinese manufacturing.” 

Often, companies add the cost of any tariffs they pay to the price of the final product. This effectively turns them into a tax on consumers. However, Carlisle notes that, not only could tariffs cost American consumers and businesses money at a time when the cost of living is higher than ever, but cutting the US off from its neighbours and their supply chains could have even more disastrous long-term consequences. 

“From a sustainability perspective, Trump’s proposed tariffs could be shortsighted,” he says, noting that, during the previous Trump previous administration, tariffs imposed in an attempt to curb China’s dominance actually backfired. Trump inadvertently enabled China to take a leadership position in technologies critical for the green transition, according to Carlisle. Six years later, the International Energy Agency’s data shows that China currently controls more than 80% of the global solar value chain. “If these tariffs go ahead, they could further cement China’s position in green technology while increasing costs for U.S. manufacturers and consumers,” Carlisle warns. 

How likely is World (trade) War II? 

A prickly (and expensive) trade war with China was — among other things — one of the defining characteristics of the first Trump administration. 

Now, with Trump going into a second term on an even more right-wing platform than in 2016, Carlisle notes that a trade war is “certainly possible.”

If that were the case, the “policy and response from other countries could take many forms. During Trump’s first term, we saw ‘tit-for-tat’ responses from China and the EU, and this pattern will likely escalate further if he follows through on his campaign promises,” says Carlisle. “The scope of a trade war largely depends on how other nations respond. While superpowers like China may engage directly, it looks unlikely that smaller countries would enter into a tariff war with the US and are more likely to mitigate exposure to the impacts. For example, countries reliant on U.S. energy exports might shift to alternative sources, as China has done in its long-term pursuit of energy independence. Can the U.S. really afford the consequences of sustained trade conflicts? The answer may not just reshape its economy but redefine its role on the global stage.”

What can we do about tariffs and the trade war?

The threat of increased tariffs and a looming trade war has sprung up in just a few months. Donald Trump announces policy via his social media platform du jour as quickly as he can think them up (or, more accurately, copy them from Tucker Carlson). Given the speed of the emerging threat, the majority of procurement teams are still evaluating their options. Carlisle notes that organisations have a wide array of potential responses, including moving operations to avoid tariff barriers, likely accelerating the nearshoring trend that has come to establish itself since the pandemic. 

Product flows, Carlisle explains, are increasingly being “broken up into three ‘global zones’ – the Americas, Europe, and APAC – to mitigate risks associated with tariffs. The new tariffs will likely speed up this trend with companies managing their supply strategies in a regional network,” and bringing their suppliers closer to home. He adds that, “we may see Chinese firms potentially acquiring Mexican businesses to sidestep tariffs in the States.” 

In the short term, manufacturers may try to mitigate their risks by increasing inventory buffers, firmly putting the era of “just in time” supply chains to rest. “Some firms might also stockpile resources with high anticipated tariffs, while others may explore ways to automate and cut costs in their manufacturing base. While much is still to be firmed up surrounding Trump’s tariffs, firms should look to tread a careful balancing act of cost, efficiency, and resilience,” Carlisle reflects. 

Newly released research by RS and the Chartered Institute of Procurement & Supply (CIPS) has highlighted some of the major trends and challenges teams responsible for the indirect procurement of maintenance, repair and operations (MRO) supplies. 

Respondents to the survey held procurement roles in sectors that include discrete and process manufacturing, public and private sector organisations, energy, facilities and intralogistics. Job roles included operational, managerial, tactical, professional and advanced professional levels. This relatively small segment of the procurement sector is, nonetheless, reflective of the larger whole — specifically, the pressures purchasing departments are feeling from multiple sides. 

The procurement balancing act 

Raj Patel, Managing Director for the UK&I at RS, notes that “people working in procurement face some of the most challenging conditions the profession has ever seen. Not only must they wrestle with external factors such as inflation, geopolitical tensions and supply chain disruptions, but they’re also under increasing pressure to make a tangible contribution to organisations’ wider carbon-reduction efforts.” 

Of the procurement professionals surveyed, 60% reported having reduced operational budgets, while 51% felt pressure to drive more sustainable and ethical procurement practices. A significant proportion (40%) also described pressure to reduce their inventory costs. 

This pressure to reduce spend is creating what the report describes as a balancing act between cost and quality. 

Increasingly, businesses are asking procurement to do more with less. This is reflected, according to the report, by a growing number of day-to-day challenges professionals are facing. The report found that delivering annualised cost savings had become the biggest pressure for those involved in MRO purchasing. Almost half (40%) of respondents cited cost containment as their biggest pressure, compared with 29% in 2023. 

While procurement teams have always walked razor thin margins, Jane Lynch, Professor of Procurement at Cardiff Business School and Director of the Centre of Public Value Procurement, argues that “there comes a point at which you can’t take any further cost out before it starts to impact on quality. The challenge now is balancing lowest cost with highest quality, and that applies to both products and services in MRO procurement.”

Old and new 

Many of the challenges cited in the 2024 report are still a concern for procurement teams, although the report notes that the pressures they pose have intensified. Inflation and higher costs still present the biggest challenge, cited by 62% of respondents, doubling the response in 2024 which was 31%.

Managing risk in the supply chain is becoming more of a worry, up on last year’s figures of 31% to 47% this year. A higher number of respondents said they were worried about global political uncertainty (37%) than last year (20%). The issue of attracting and retaining talent remains, with 33% of respondents highlighting this versus 29% last year.

The Procurement Act 2023 represents the most significant overhaul of public procurement in the UK since leaving the European Union. 

Coming into effect on 24 February 2025, the Act introduces substantial changes that will affect how suppliers engage with public sector procurement across England, Wales, and Northern Ireland.

The Act unifies various procurement regimes under a single framework, encompassing public contracts, utilities, concessions, and defence and security procurement. 

It introduces a shift in procurement objectives, moving beyond the traditional focus on equal treatment and non-discrimination. Now, contracting authorities are mandated to deliver value for money, maximise public benefit and act with integrity throughout the procurement process.

A significant change is in how contracts are awarded. The “most advantageous tender” (MAT) criterion replaces the previous “most economically advantageous tender” (MEAT) approach.

This shift allows for a broader consideration of factors beyond price, including quality, innovation and environmental impact. In some cases, non-financial criteria can be the deciding factor in contract awards.

Greater flexibility and transparency among key changes in Procurement Act 2023

A new digital platform will serve as the central hub for contract notices and supplier registration, streamlining the process for businesses seeking public sector opportunities. 

This single registration system will grant suppliers access to opportunities across multiple contracting authorities, significantly reducing administrative burden.

The procurement procedures themselves have been dramatically simplified, moving from seven procedures to three:

• Open: A single-stage procedure, similar to that in the current procurement regime
• Direct award: Allows authorities to award contracts without competition. Again, similar to the process in the current procurement regime but will require publication of a transparency notice before the contract is executed.
• Competitive flexible: A “build-your-own” procedure that allows contracting authorities to design the procurement process to suit the specific needs of a contract.

The introduction of the competitive flexible procedure particularly stands out as it offers greater flexibility in procurement design, allowing for more innovative approaches to tendering.

Transparency requirements have been substantially enhanced under the Act. For contracts exceeding £5m in England (but not in Wales), there’s a new obligation to publish at least three key performance indicators (KPIs) and regularly assess supplier performance against these metrics.

How can suppliers adapt? 

Suppliers will need to adapt to new requirements for publishing procurement documentation and contract performance data. There will be mandatory disclosure requirements for contract changes and modifications. Along with this, the Act also increases the emphasis on supply chain transparency throughout the procurement process.

The Act places particular emphasis on improving access for small businesses. The UK government has designed the simplified procedures to reduce barriers to entry. At the same time, the Act requires contracting authorities to consider breaking contracts into lots where appropriate. 

The reforms streamline the pre-qualification process, and new prompt payment provisions will ensure better cashflow throughout the supply chain.

A new exclusion framework has also been established, updating both mandatory and discretionary exclusion grounds. This includes the introduction of a centralised debarment list, alongside a clear process for self-cleaning and removal from exclusion lists. 

Enhanced due diligence requirements will affect how suppliers demonstrate their eligibility for public contracts.

How suppliers can prepare for implementation of the Procurement Act 2023

While contracts executed before this date are subject to existing rules under the Public Contracts Regulations 2015, full compliance with the Procurement Act 2023 will be required from 24 February 2025.

Implementation preparation requires significant attention from suppliers. Organisations will need to thoroughly review and update their internal processes to align with the new procedures. 

This includes preparing for registration on new digital platforms, developing enhanced reporting capabilities to meet transparency requirements and updating document management systems to handle new requirements.

Training and pre-market engagement

Training and development will be crucial during the preparation phase. Staff will need comprehensive training on the new procurement procedures, transparency requirements and digital platform usage. Bid writing and tender response processes should be updated to reflect the new requirements and opportunities presented by the Act.

Understanding the potential for multiple nuances and variations with the competitive flexible procedure is particularly important. The act encourages pre-market engagement. Therefore, suppliers should take advantage of the opportunity to provide input on how these procedures can better reflect local business practices.

Measuring performance and contract management 

There is an increased onus on contracting authorities to hit key performance indicators (KPIs), which means suppliers must also ensure they can realistically meet these, especially when linked to regional social or environmental priorities. The new regime will punish failure to meet KPIs, which could potentially damage future business prospects. 

Taking advantage of the detailed performance information published about competitors can assist with improving bid and performance strategies.

Supply chain checks

The central debarment list places greater attention on compliance considerations. Suppliers should conduct due diligence not only on their corporate structure, but also on their supply chains to ensure compliance with exclusion grounds. The act may result in buyers exclusing those that fail to meet environmental or specified standards from future procurement activities.

Having a team or process in place to quickly challenge or appeal any debarment decisions will be key, as exclusion from public procurement will have a long-term business impact.

Challenging decisions

The challenge process under the Act remains similar to the current regime, with suppliers required to issue challenges within 30 days of being aware of grounds to issue a claim. 

However, the Act introduces more stringent requirements for contracting authorities to provide feedback to unsuccessful bidders, giving them an opportunity to identify inconsistencies or errors.

Companies should flag commercially sensitive information in their bids to ensure they do not inadvertently disclose confidential business or bidding strategies. 

Opportunities and risks for businesses arising from procurement reform

The Act creates significant opportunities for suppliers to the public sector. Market access will be simplified through reduced administrative requirements and improved visibility of opportunities. 

The new flexible procurement procedure enables more innovative solutions and increases the opportunity for dialogue with buyers. Suppliers will have greater scope to demonstrate value beyond price considerations.

Commercial benefits include reduced bid costs through simplified procedures and better visibility of pipeline opportunities. The Act also introduces improved payment terms and conditions, along with enhanced supply chain opportunities for businesses of all sizes.

Compliance risks stem from new exclusion grounds and criteria, enhanced transparency requirements and increased supply chain due diligence obligations.

Contract performance reporting will require robust systems and processes. Operational risks include managing system and process changes, meeting training requirements, allocating resources effectively and adopting new technologies.

Suppliers should begin preparing immediately by reviewing their current procurement processes and assessing training needs. 

Organisations should prioritise planning for digital platform adoption and reviewing compliance procedures. 

Over the medium term, focus should shift to updating systems and processes, training staff and registering on new platforms. 

Long-term considerations include developing a strategic approach to public sector business development, building capabilities for new procedures, and strengthening supply chain and contract management capabilities.

As business leaders prepare for the year ahead, reducing third-party costs remains high on the C-suite agenda. While the Finance and Procurement departments will manage the technical aspects of identifying and delivering on cost-cutting opportunities, it is often forgotten how important the CFO and their senior peers are in creating the right conditions for successful execution. 

Working with a wide variety of organisations, we find that the likelihood of a good outcome rises by 40% when senior leadership fully support and manage opportunity assessments.

Getting started: Ambition and preparation 

When approaching an opportunity assessment, senior business leaders should consider the critical actions below:

Define scope and targets

The focus of the opportunity assessment should be clearly defined. This is true whether addressing a full scope of spend, targeting specific areas like indirect procurement, or aiming for additional objectives like Working Capital. Establish clear parameters, including timelines and concrete targets with anticipated bottom-line impact and ROI. The assessment requires a  clear direction to yield meaningful results. 

Secure executive commitment

Gaining commitment from executive peers is essential. Executive buy-in and accountability are key to building the momentum needed for successful programmes. Sometimes, other pressing initiatives will limit their availability. In such cases, it may be wise to reassess the timing or scope of the assessment.

Encourage “blue sky” thinking

Foster an open-minded approach. Encourage the kind of atmosphere where all ideas are welcome. This includes revisiting previously rejected ideas and considering those that require investments to unlock savings. In the beginning, make room for thinking that isn’t constrained by existing capability or resources. Later on in the process, this can be refined.

Establish strong governance and decision-making processes

Implement robust governance to ensure opportunities are reviewed in an open forum, allowing decisions to be made based on a solid business case rather than prematurely dismissing options without proper assessment.

The right context and timing are critical to success

Certain scenarios can make opportunity assessment particularly valuable. These include:

• Budget planning: Aligning the opportunity assessment with your budgeting process allows for the smooth integration of identified opportunities into financial planning. 
• Market changes: Inflationary pressures may create additional reasons to revisit supplier relationships to maintain margins.
   
• Company performance: If the cost base shows continued year-on-year growth, an opportunity assessment can help identify and address the underlying issue.
• Company Changes: An opportunity assessment can help organisations prepare themselves for an acquisition, private sale or an IPO.

Harnessing data to maximise impact

Lack of spend visibility limits the organisational focus to a budget level, restricting the ability to consolidate cross-functional spending and maximise value. This is where CFOs can play a pivotal role by aligning stakeholders across the organisation and identifying synergies to maximise impact.

By creating a comprehensive, organisation-wide spend cube upfront, with clear visibility into costs across business units and spend categories, CFOs can ask the right questions and ground the assessment in a realistic view of current operations. 

Putting plans into action

Identifying opportunities is only the first step. To turn those findings into tangible results, CFOs and senior leaders must ensure that the right commitment, resources, and capabilities are in place. Key actions include:

Focus on key initiatives

Momentum is essential. Concentrate on core initiatives that align with available resource levels and organisational goals. It’s often better to build momentum through smaller focused efforts than launch too broad a programme.

Engage the wider executive team

Achieving stretch targets will require significant time investment from various parts of the organisation. Building executive awareness and securing senior sponsorship is key to realising savings. This may involve high-level executive discussions and aligning budget targets with the developed initiatives.

Assess Procurement’s ability to deliver sustained results

Evaluate whether the procurement function can deliver on the identified opportunities by asking the following:

Does Procurement’s remit cover the entire spend targeted by the programme?

• Does Procurement have the skills and capacity to deliver results?
• Is Procurement aligned with key company goals? 
• Can existing employees be upskilled, or should temporary resources be brought in to meet a specific, time-bound need?
• Should the business invest in more senior procurement resources to lead the transformation programme? 

Is now the right time for an opportunity assessment?

An opportunity assessment might be the key to bringing about significant change if your company is getting ready for a big transformation, facing cost pressures, or nearing a budgeting cycle. CFOs and senior leaders should ask themselves:

• Do you think there might be cost savings available as a new budget cycle approaches, but you’re unsure where to begin? 
• Is your organisation getting ready for a significant financial or strategic event?
• Are you having to reevaluate your cost structure due to market pressures?

If you answered yes to any of these, now is the time to see how an opportunity assessment could assist your organisation in maximising value. 

Supply chain organisations and procurement leaders are bracing for a major crisis, as the incoming Trump administration promises sweeping tariffs in Q1 of 2025. A new report by spend management solutions firm Ivalua has revealed that half of organisations in the US and UK are preparing for changes in US trade policy, including rising tariffs. 

These changes, they believe, will create sweeping supply chain disruptions, resulting in higher costs for customers. Multiple organisations also warned that sweeping trade regulation changes could put them “at risk of collapse.”

Free trade agreements under threat 

Ivalua’s study of 200 US and UK supply chain and procurement decision-makers identified restrictions on exports of certain products and materials as their top concern (89%). The majority (84%) pressed worry about the overhaul or elimination of existing free trade agreements. A similarly overwhelming number (89%) also expressed concerns over broad tariffs on imports, while 84% fear high tariffs on goods imported from China. 

Sparked by President-elect Trump’s recent threats to hike tariffs on goods imported to the US from China, Canada and Mexico upon taking office, organisations’ fears could be realised as early as January when the new administration comes into power. 

“President Trump has been forthright in his position on tariffs, but the final details may vary based on negotiations with  certain countries and some categories of imports,” commented Alex Saric, a procurement expert at Ivalua. Uncertainty around how trade policies and tariffs will be implemented means companies won’t know how best to optimise supply chains to mitigate the impact until the last minute. At a minimum, organisations should start working with suppliers now to reconsider supply chain operations and identify ways to mitigate the impact of likely trade policy changes in the new year.”

The impact 

The impact, according to Ivalua, could be significant for US and UK businesses. Of the firms who anticipate more disruption from January:

• 52% say they will need to completely reevaluate which suppliers they work with.
• 51% say they will pass the cost onto customers – US organisations (65%) are more likely to do so than those in the UK (36%).
• Almost half (48%) foresee rising supply chain costs that reduce profitability.
• 45% warn rising supply chain costs will put their business at risk of collapse – with US organisations (52%) having a greater fear of collapse than those in the UK (36%).

“Organisations should prepare for the possibility of nearshoring or onshoring operations, factoring in evolving ‘made in USA’ thresholds and the impact increased tariffs will have on suppliers in China, Mexico, and Canada,” Saric added. “But the reality is that certain industries, especially those dependent on rare earth minerals or established manufacturing clusters, can’t easily shift away from China.”

In 2024, the procurement sector tangled with multiple headwinds that ranged from rising material and SaaS costs to mass layoffs in the tech industry and geopolitically-driven disruption. As we enter 2025, procurement leaders must make savvy decisions to avoid the ongoing challenges facing their discipline and capitalise on the opportunities presented by new legislation and emerging technologies like AI and automation. 

As the year draws to a close, we sat down with Eldar Tuvey, founder and CEO of Vertice, a procurement orchestration and SaaS saving platform, to hear his six predictions for procurement in 2025. 

1. Procurement continues shift from cost-cutting to ensuring value 

With Elon Musk appointed as the US’s “Secretary of Cost-Cutting,” the conversation around bold and occasionally brutal budget slashes is likely to dominate the news agenda and the way in which businesses consider their purchases. 

Yet procurement leaders are shifting from cost-cutting to evaluating investments by their broader value and impact – including efficiency, performance, risk mitigation and security. This risks becoming a point of contention in boardrooms if the importance of such evaluation is not well-communicated and proven out.  

2. Procurement workflows will finally be recognised as data workflows 

Procurement departments are seeing that despite traditional perceptions, they can be one of the most data-driven departments in the business.

The most advanced procurement teams are currently relying on streamlined, customizable, responsive workflows, well-integrated with the business’ wider technologies – especially project management and collaboration tools – and advanced analytics to assess and continually improve these workflows’ ongoing efficiency.

And it’s proving to be worth it — these businesses are achieving a 30% boost in speed to market, innovation, and efficiency. We know that in 2025, more and more procurement leaders are aiming to chase up with these early innovators.

3. Supplier Relationship Management will finally go ‘strategic’ 

With a greater determination to evaluate suppliers based on wider value rather than simply cost and SLA performance, Supplier Relationship Management will become more data-driven.

Organisations will rightly expect their procurement teams to be using real-time internal and external data to assess a relationship’s overall health. This may include price benchmarking, usage analytics, SLA performance, duplication, risk and more.  

4. AI adoption is accelerating.

Expect to see more native AI features within your SaaS products in 2025, and more dedicated AI tools being requested. Four of the top five fastest-growing SaaS vendors in 2024 are either AI platforms, or have integrated / native AI features within them.

But AI will still only support rather than replace human-led functions for the time being. Using AI would require a change of working behavior – something notoriously hard to achieve. It will be some considerable time before using – and trusting – AI as even a co-pilot becomes the norm, let alone handing over responsibilities.

5. Outcome-based pricing up to 4%

AI will accelerate a transformation in SaaS pricing models, pushing the industry toward usage or even outcome-based pricing – where customers pay for measurable success, such as performance improvements, cost savings or efficiency gains, not just access or usage. 

The shift in pricing models will be more gradual. Today, 49% of SaaS contracts are still priced per user, 29% on usage, and 22% are hybrid models – meaning traditional models still dominate the landscape. Of the 29% of contracts that charge based on usage, only 4% of these are outcome-based – demonstrating that we are a long way off from outcome-based pricing becoming the new normal, despite the hype. 

6. Single-suite platforms will finally overtake point solutions

Customers want simplicity and centralization from their SaaS in 2025, vendors will answer this with white-labelled point solution integrations.

Businesses have, on average, 128 live SaaS applications in 2024 – an 8.5% growth YoY. To reduce the complexities and cost that can come with managing so many tools, many businesses are switching their procurement strategy away from best-in-class point solutions towards more multi-feature platforms. As a case in point, all-in-one finance and CRM platform NetSuite – which has been aggressively broadening its capabilities recently – has been the tool with the highest renewal rate for the last two years.  

Many larger platforms may choose to integrate with the particularly successful point solutions – on a white labelled basis or otherwise – to save on development time and cost. But in 2025, the overall trend will be for a shift towards more muti-functional platforms to reduce the number of SaaS tools in use.

In the face of evolving global challenges, procurement leadership in 2025 is poised to undergo a transformative shift. Leaders will be expected to adapt to more frequent global disruption by increasing resilience, technological expertise, and enterprise leadership into their core role. Below are six key hiring trends that will shape the future of procurement leadership.

1. Strategic Risk Management and Supply Chain Resilience

As geopolitical tensions continue to rise and the global economy becomes increasingly difficult to predict, procurement leaders must demonstrate exceptional risk management capabilities. A 2024 report by Economist Impact found that 44% of executives continue to focus on encouraging diversity in their supplier base – a trend likely to intensify amidst global trade tensions and proposed tariffs under the Trump administration.

Nearshoring, supplier diversification, and regional collaboration are becoming routine for procurement leaders. As a result, many are increasingly developing flexible and adaptable sourcing strategies. Scenario planning and risk management will also become essential components of modern procurement practices.

Leaders adept at identifying supply chain vulnerabilities, diversifying procurement sources, and fostering resilience will be invaluable in this environment. Boards will seek individuals who can proactively navigate uncertainties, ensuring operational continuity and minimise disruption in the face of challenges.

2. Emphasis on Digital Transformation and AI Integration

The integration of AI and digital technologies into procurement processes will dominate leadership priorities in 2025. Leaders with expertise in AI-driven analytics, automation, and digital procurement platforms will be sought to enhance decision-making and drive efficiency.

Balancing innovation with practicality, these leaders will manage the integration of AI while addressing the associated security risks. Boards will prioritise candidates capable of aligning these technological advancements with broader organisational goals. They will also favour those who can ensure robust yet adaptive supply chain systems.

Already, AI is being used in spend analysis, contract management, supplier risk assessment, demand forecasting, and even autonomous negotiations. Procurement sits at the confluence of huge quantities of data. The function is an untapped gold mine for predictive models and AI-driven analytics. Boards want procurement leaders who can tap into this and capitalise on it.

3. Enterprise Leadership: Business Leader First, Function Leader Second

Procurement leaders are increasingly expected to adopt an enterprise-wide perspective. Acting as business leaders first, they must align procurement strategies with overarching corporate objectives. This is often a mindset shift, and involves fostering cross-functional collaboration and contributing to organisational growth beyond the CPO’s functional remit.

This is a must-have skill for any procurement professional looking to step into the CPO role. Boards want their procurement leaders to translate supply chain and procurement nuance into the broader strategic framework. In doing so, they will position the function as a driver of innovation, cost-efficiency, and competitive advantage.

To achieve this, procurement professionals should ensure they understand the overarching business objectives. Common examples include revenue growth, market expansion, and sustainability. They should attempt to act as a bridge. Essentially, procurement initiatives should support and amplify the efforts of other functions to drive organisational goals. Finally, they should also influence at the executive level. Procurement should be presented as a strategic driver by communicating its impact on cost-efficiency, innovation, and competitive advantage.

4. Data-Driven Decision Making and Predictive Analytics

Predictive analytics is becoming a cornerstone of strategic procurement. Leaders proficient in data analysis will be able to anticipate market trends, refine sourcing strategies, and enhance supplier performance. This data centric approach provides organisations with a competitive edge that goes far beyond traditional cost, quality, and delivery metrics.

A 2024 McKinsey survey found that 22% of procurement employees in best in class companies now work in analytics roles. The trend demonstrates the growing emphasis on data literacy and the necessity for procurement leaders who can translate insights into actionable strategies.

Next year, this will become a key priority for procurement leaders with boards looking for those individuals who are both proficient in data analytics and who can overcome its associated challenges. These include, data quality issues, communicating the business case to the board, and embedding data analytics transformation into the rest of the business.

5. Talent Development and Multigenerational Workforce Management

With a diverse workforce that spans multiple generations, fostering an inclusive and adaptive culture in the organisation is essential. Leaders who can bridge generational gaps, promote continuous learning, and attract top talent will play a critical role in building dynamic procurement teams.

According to a 2024 McKinsey report, access to talent is a key priority for procurement leaders. Of course, we already know that most face shortages in traditional procurement skills. Not only that, but many lack the technical and analytical capabilities needed to deploy and run advanced digital technologies. Therefore, in 2025, successful procurement leaders will focus on creating environments that empower teams, drive innovation, and align individual growth with organisational goals to attract and retain the best talent.

6. Procurement as a Value Creation Lever in Private Equity

Private equity firms are increasingly recognising the strategic value of robust procurement and supply chain management as key drivers of operational improvement and portfolio-wide synergies. Therefore, in a macroeconomic climate marked by higher interest rates, inflation, extended deal cycles, and diminished exit values, traditional financial strategies alone are no longer sufficient to deliver expected returns.

As a result, procurement leaders who can align supply chain strategies with private equity objectives will be in high demand. These leaders must demonstrate the ability to identify cost saving opportunities, streamline operations, and foster collaboration across portfolio companies to leverage common areas of spend. Boards and investors will seek procurement professionals skilled at integrating operational excellence into the value creation process, making sure that procurement functions as a transformative lever in delivering measurable financial and operational outcomes.

In this environment, procurement leaders who can navigate the complexities of private equity backed organisations, balancing short-term results with long-term strategic improvements, will be highly important to driving portfolio success.

The clock is ticking for the public and private sectors to prepare themselves for the Procurement Act 2023 to come into effect.

When and what to prepare for

The UK government developed the Procurement Act 2023 following Brexit, which consolidates four sets of existing regulations into one. 

There are four core objectives, which include creating a simple and more flexible purchasing system, opening up public procurement to new entrants such as small businesses and social enterprises, taking tougher action on underperforming suppliers, and embedding greater transparency through the commercial lifecycle. The objectives work together with the aim of making the new procurement regime better than the former system – maximising the huge opportunity to embrace flexibility and innovation.

The changes will come into effect from the revised date of 24 February 2025, instead of the original date in late October 2024, as announced by the Cabinet Office in September. The new Labour government recently opted to delay the commencement of the act. This is ostensibly to allow time for the government to produce a new National Procurement Policy Statement (NPPS), which is a statutory statement that allows the government to set and communicate wider policy objectives to which public procurements should consider. 

The proevious government laid out the current NPPS in parliament in May 2024. It therefore does not align with the new government’s strategic priorities for public procurement. And, as a result, the government has withdrawn it. The delay provides time for the government to produce a new NPPS, ensuring full alignment with the government’s strategy once the Procurement Act begins. Pagabo contributed to the survey for feedback that closed on 4 November.

The new NPPS

The Cabinet Office has stated the new NPPS will create a “mission-led procurement regime which builds on the transformative powers within the Act, and which meets the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value.” This aligns with the objectives of the act: increased transparency, simplicity, and the move from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT). This will ensure that procurement functions will prioritise best value over lowest cost. 

The government will draft the new NPPS before putting it out for consultation. This will allow adequate time for contracting authorities to review the updated strategic priorities. Then it will undergo a 40-day passage in parliament – consistent with the process followed for the existing NPPS. 

In the meantime, work on the central digital procurement platform will continue – designed to host all the information required to support the transparency agenda and the Procurement Act’s new reporting obligations – with the Cabinet Office currently reviewing how to use the additional time for testing and deployment.

We can expect changing processes because of the act and new terminology to understand and use, but it is unrealistic to expect everyone to be procuring perfectly straight away. However, contracting authorities and suppliers should be ready to embrace the new procurement regime and its objectives – establishing lasting behavioural change. 

Contracting authorities should examine their procurement pipeline between now and March. A key thing for them to consider is whether to adjust their timings or continue as planned using a compliant framework.

The Act will, hopefully, improve the way suppliers engage with contracting authorities. Though the new processes will become clearer as they are implemented, there are several key changes to become familiar with. 

1. Notices 

Under the current regime, notices focus on the procurement process – including tender notice and contract award. From 24 February, there will be a noticeable shift meaning that notices are required throughout the full procurement and contract lifecycle – changing the number required from four to 14. This starts as early as the new mandatory pipeline notice, which sets out information about a contracting authority’s public procurement pipeline where the anticipated spend is more than £100m within a defined reporting period. The notice will set out information on each public contract with an estimated value of more than £2 million.

The new notices will drive transparency throughout the procurement lifecycle, increasing inclusion and enabling greater scrutiny of procurement decisions and contract performance to maintain high standards.

For suppliers and especially SMEs, it will mean greater opportunity to engage in upcoming procurements, while tracking progress and performance. It will also increase transparency of underperformance, which should be considered given that it could impact the ability to bid for future work. 

Contracting authorities will need to invest time into their procurement resources or engage with managing agents like Pagabo to deliver their frameworks, but increased administrative burden may be offset by the simpler system aiming to reduce duplication.

2. Procedures 

The act streamlines the procedures under the current regime from seven down to two competitive procedures – open, and the new competitive flexible procedure. The new mechanisms aim to create maximum flexibility for procurement solutions and reduce barriers to entry. 

Suppliers will need to undertake appropriate training to ensure bid teams are aware of the changes and where to access information. Suppliers are encouraged to engage with contracting authorities to contribute to pre-procurement planning stages to support the design of procurement solutions. Therefore, suppliers should allocate the appropriate resource and time to review published opportunities and raise clarifications with contracting authorities if the documents contain any ambiguities.

Contracting authorities are encouraged to utilise preliminary market engagement to determine the most appropriate route to market and ensure their internal policies and procedures align with the new mechanisms.

3. Exclusion and debarment 

The discretionary and mandatory exclusion grounds will remain very similar, targeting non-compliance and poor performance but the scope widens under the act. The act drives the transparency agenda with plans to launch a debarment register housed on a central digital platform and the mandatory issue of a new notice detailing any unsatisfactory performance or contract breaches. Contracting authorities will need to review and verify applications against the live debarment register and any notices detailing unsatisfactory performance for each procurement opportunity. 

There is some nervousness around this. However, there are several robust steps that precede a contractor finding themselves on the debarment register. This includes the contracting authority issuing notice to the government on the recommendation to place a contractor on the register, a thorough impartial investigation, and an eight-working day standstill period also applies to any debarment decision. 

Suppliers should review their supply chains to ensure no organisation poses unacceptable risk. Policies and procedures should also be subject to a levelling up exercise to ensure the correct governance is in place. 

Ultimately, the debarment list is there to prompt accountability, ensure compliance and protect the investments of those procuring works, providing ample incentive for suppliers to get things right and keep bidding for work into the future.

4. Performance 

Procurement performance is a core focus of the Procurement Act and therefore it formalises and strengthens some of the existing requirements. This includes the issuing of at least three mandated performance measures prior to entering into contracts with an estimate value above £5m, the publishing of payment compliance information and the social value tender commitments which will form a contractual commitment and KPI. 

There will be increasing analysis of the entire procurement lifecycle, from performance of frameworks through to individual contracts via the publishing of new notices, and suppliers will be assessed on whether things are performing as intended within bids. 

Greater access to information may increase scrutiny and the volume of challenges. It could potentially increase opportunity or damage chances depending on what performance data shows. Reputational damage is a risk if performance is below the expected standard, but the act aims to encourage collaboration in pre-procurement stages to ensure performance measures are suitable and support everyone involved in procurement to improve processes and benefit from attention to detail.

5. Challenges 

The provisions remain broadly the same, but there are some changes to the challenge process, including changing the standstill period to eight working days. Contracting authorities must provide all bidding organisations that have been assessed with feedback in the new assessment summary format. This drives transparency and will aid industry betterment by enabling suppliers to improve future bids. 

Contracting authorities must now provide all bidding organisations that they have assessed with feedback in the new assessment summary format. This also drives transparency and will aid industry betterment by enabling suppliers to improve bids.

There are two pieces of advice for suppliers. The first – and most obvious – is to thoroughly digest all feedback using the assessment summaries provided. The second is to flag confidential information within bids. This ensures no one shares the information with other bidding parties, reducing competitive edge. 

Where to go for further guidance

These are just some of the changes to be aware of ahead of February, and there are various free government resources available online to help prepare for a more successful and transparent future in procurement. 

Despite the recently announced delay, there is no impact on the availability of content or any of the official materials, which will continue to be available up to and after the new commencement date. The official line from the Cabinet Office is that if you plan onstarting any training in the new regime, or have booked a ‘Deep Dive’ session, you should continue as planned.

If all goes to plan, prolonged time to learn and become familiar with the upcoming changes will lead to greater levels of practical understanding and confidence within procurement teams once the act comes into force. 

For more information, please visit www.pagabo.co.uk or www.pagabo.co.uk/procurement-reform

Shamayne Harris is head of procurement at Pagabo.

The UK government has announced new controls on the public procurement of consultancy services by government bodies. The new restrictions are being introduced to cut “unnecessary spending” on consultancies in order to save the government £1.2 billion by 2026. Departments are already expected to save the £550 million committed to this financial year.

More oversight, less spend

The new controls, according to a government press release, will provide more oversight for any consultancy spend over £600,000. They will also affect contracts lasting more than nine months. Ministerial signatures will be required for such projects to go forward. Additionally, spending over £100,000, or lasting more than three months, will now require a signature by the relevant permanent secretary.

When combined with commercial agreements that are focused on value for money, the government expects these controls to drive a reduction in consultancy spend in Whitehall.

“We’re taking immediate action to stop all non-essential government consultancy spend in 2024-25 and halve government spending on consultancy in future years, saving the taxpayer over £1.2 billion by 2026,” commented Georgia Gould, Parliamentary Secretary at the Cabinet Office.  She added that the restrictions are part of the governments work to” make the Civil Service more efficient and effective.” She also hailed the government’s efforts to take “bold measures to improve skills and harness digital technology.” 

New framework agreement bidding announced

In conjunction with its announcement, the government has also invited companies to bid for a new framework agreement. The agreement’s purposeis to streamline the way the government uses consultants in the years to come. 

The goal is to create a single, centralised list of suppliers. These organisations, will have already been through a rigorous and competitive tendering process to gain a place on the agreement. As such, it will cut down the time spent by departments on the procurement process. Ultimately, the government believ es this will ensure better value for money and more competitive prices.

In line with its commitment to cut consultancy spend, plans are already in place to dramatically cut the framework’s value. The framework’s total value will fall, from £5.7 billion over four years as planned to £1.7 billion over two years.

The new agreement will be managed by the Crown Commercial Service (CCS), the UK’s biggest public procurement organisation and an executive agency of the Cabinet Office, which will play a coordinating role in consolidating the government’s consultancy spend as it delivers change for working people.

“Consultancy services are sometimes needed to support government to deliver for citizens, but taxpayers must get value for money,” said Sam Ulyatt, CEO of Crown Commercial Service. 

“This agreement will help to ensure a behavioural and cultural change of how consultancy is procured throughout the UK public sector.”

Organisations are supposedly “neglecting” artificial intelligence (AI) adoption and, according to a new report by Icertis, it’s hurting their contract negotiation performance. Costly contract mistakes are a widespread pain point that the majority of C-suite executives believe can be solved with AI.

A new survey of C-Level executives by AI contract management tool provider Icertis found that as many as 90% of CEOs and 80% of CFOs are failing to negotiate contracts effectively. This major oversight is, Icertis claims, leaving millions of pounds on the table. It represents “vast amounts of money” that could be recouped with better pre-signature contract negotiations.

Everything runs on contracts 

Contracts define every business relationship and form the foundation of global commerce. In the current financial climate, every pound counts. Icertis’ report argues that contract mismanagement is a key pain point for organisations looking to prevent revenue losses. The report surveys 1,000 c-suite executives to illuminate how contract inefficiencies are causing severe revenue leakage within organisations. Industry experts have called the digital transformation of conteact management the next frontier for the procurement industry.

70% of CFOs stated that most revenue loss occurs from rising costs in their contracts due to inflation adjustments. These adjustments have largely gone unchecked or ignored in contract reviews. Also, a further 30% of business leaders point to revenue loss from unchecked auto-renewals.

Both issues which could be easily captured through AI-driven contract monitoring.

Icertis: “AI is being overlooked” 

Despite being complex, Icertis argues that AI-driven contract monitoring is now capable of capturing the reoccurring issues associated with contract value leakage. However the report also shows that CEOs are underestimating the role AI can play in addressing costly contract gaps within their legal departments – the hub for contract negotiations and agreement management across the enterprise.

When asked where AI would deliver the most business value by 2025, the legal function (23%) was ranked last. It came in behind finance (47%), marketing (46%), sales (35%), and several other business units. Icertis argues that the ranking indicates that many leaders are overlooking the transformative potential of AI in mitigating legal inefficiencies and boosting profitability.

“Millions of dollars flow in and out of the enterprise through commercial agreements with customers and suppliers. This survey from Icertis proves that c-suite leaders lack confidence when it comes to optimising those agreements and are unknowingly overlooking critical areas of value leakage in their business relationships,” said Rajat Bahri, Chief Financial Officer at Icertis. “Executives in all industries want to increase revenue and improve profit margins in 2025, no matter what the economic landscape looks like. Turning contracts into strategic assets with the right AI technology is key to recapture revenue and ultimately get ahead as global commerce continues to evolve.”   

Other Key Report Findings Include:

1. CFOs are turning a blind eye to value leakage. CFOs cite late or outstanding customer payments, unused discount opportunities with suppliers among the top five sources of revenue leakage.
2. Overconfidence is the biggest threat to regulatory compliance. 70% of c-suite leaders feel “very prepared” to demonstrate compliance in 2025’s rapidly shifting regulatory landscape. However, nearly half (44%) of businesses were fined for regulatory violations in the last five years.
3. AI will trump macro-economic factors in shaping the 2035 business landscape. Executives believe advancements in AI will have the biggest effect on how their business evolves in the next 10 years. That’s even more of an impact than climate change, increased market competition, geopolitical shifts, and evolving supply chains.

 The research findings serve as a call to action for business leaders. Icertis argues that they need to urgently need to rethink how AI could play a vital role in contract management. AI can prevent costly errors and ensure more efficient negotiations throuh automated monitoring, inflation adjustments, and real-time insights.

Going forward, businesses will continue to face economic pressures. However, Icertis argues that those that adopt AI to tackle contract inefficiencies will likely see significant reductions in revenue leakage and unnecessary expenditures in the years to come.

In today’s rapidly evolving healthcare landscape, the estates and facilities profession face a complex array of challenges ranging from capability and capacity constraints to financial efficiency and the urgent need to reach net zero carbon emissions. As the NHS and public sector strive to deliver high-quality healthcare services amid these pressures, the NHS needs more than just a route to market. 

More than just a route to market

The size of the UK public health decarbonisation market has been estimated in the billions. The sector, however, requires a step change in terms of the support offered to public sector organisations to make and succeed in funding applications and private sector funding alternatives. The public sector needs more than just a route to market; it needs new ways of financing and delivering its net zero goals.

This means engaging more deeply with the clean technology procurements themselves — procurements of sustainable and energy-efficient solutions, such as LED lighting and solar PV, for example. We need to go beyond mere target-setting for climate mitigation to be able to effectively serve the NHS and the public sector. 

Buying green with procurement frameworks

Over £100 million of green technology transactions have been processed for UK public bodies since 2021. So far, procurement frameworks have enabled promising levels of access to fundamental clean technology upgrades. These include implementing smart LED lightning systems that adjust brightness based on the time of the day and occupancy as well as building upgrades for energy efficiency. Engaging early with procurement frameworks is a key action for estates and facilities teams to focus on, as this will significantly reduce the time and effort required to identify, evaluate, and implement green technologies.

The public sector and NHS are dealing with increasingly complex projects. From £20million solar farm installations through to nationwide LED deployments, these complex projects require specialised skills and funding. This is where procurement frameworks provide much needed structure for sourcing green technologies and act as a springboard to accelerate delivery, for example, public bodies can move from piloting LED rollout to scaling-up through a direct award. 

Estate and facilities managers can also seek support with contract development and agreement to ensure the project meets the requirements set within the direct award parameters defined as part of the framework. This will also help the NHS process projects promptly, as well as deliver savings. According to London Borough of Waltham Forest for instance, “the energy saving LED lightbulbs use less electricity than traditional incandescent light bulbs, with the improvements expected to shave off around 7% off the Council’s annual energy bills.”

Beyond strategic procurement

Looking beyond strategic procurement, addressing the current challenges of capability, capacity and efficiency will require workforce development, skills building and careful fiscal management. Through framework procurement we can unite supply chain experts with NHS client teams, for example, to jointly execute on clean technology projects. 

Only through a well thought-out and collaborative approach can we ensure the continued delivery of high-quality healthcare services while advancing sustainability objectives.

With the Budget expected October 30^th and the new Procurement Act set to come into force in February 2025, it is a time of change for the public sector, its capital works programme and procurement processes. Amidst the change, we must not take our eyes off the prize. In the UK, the public sector provides the size and scale of energy and climate projects needed to boost British supply chains to make every UK home net zero. Better hospital, school and local authority buildings will mean better outcomes for us all.

Clean tech poses unique challenges 

Clean technology procurement is different from procuring stationery or purchasing digital and telecoms solutions. With informed procurement support from clean technology experts, our public health system can focus on doing what it does best: delivering high-quality healthcare services. Working together in this way, we can procure effectively for net zero.

Finally, the transition to net zero in the public sector also presents an opportunity for innovation and collaboration between various stakeholders. By fostering partnerships between public bodies, private sector companies, and research institutions, we can accelerate the development and implementation of novel clean technologies. These collaborations could lead to the creation of pilot projects that test cutting-edge solutions in real world settings, such as energy-positive buildings or advanced waste-to-energy systems. 

Moreover, such initiatives could serve as valuable case studies, providing insights and best practices that can be scaled across the entire public sector. This approach not only supports the UK’s decarbonisation goals but also positions the country as a global leader in sustainable public infrastructure, potentially opening up new export opportunities for UK green tech firms.

Asset management and investment firm Achieve Partners is throwing its weight behind new boutique procurement and supply chain advisory firm RiseNow. The investment is part of Achieve’s broader project. The firm’s strategy is to identify high growth companies in fields facing severe talent shortages. Then, it builds apprenticeship programs to close those gaps and speed up growth. 

Dealing with disruption and disarray 

The COVID-19 pandemic threw the world’s supply chains into disarray from which they are still working to recover. Simultaneously, new sources of disruption continue to create major challenges for supply chain executives and purchasing departments. From extreme weather events and political conflict to the skills shortage, CPOs are facing myriad challenges. As a result, execs are looking for new solutions to the problems presented by this era of perpetual disruption. 

As a result, organisations are embracing technology at a remarkable rate. Ongoing challenges are driving the need for advanced SaaS platforms to support critical digital functions. However, according to RiseNow, many organisations adopted technology as a quick fix. As a result, they have overlooked critical process design and talent considerations needed for long-term success. Uniquely positioned to build the operating models and talent necessary to implement, configure, integrate, and manage these technologies at scale, the newly launched RiseNow is ensuring companies achieve sustainable outcomes in an increasingly complex landscape. 

Meet RiseNow

RiseNow was one of the first implementation partners of leading platforms like Coupa, JAGGAER, SAP Ariba, and Tecsys, and is currently investing in building an intake and orchestration practice. The organisation was a pioneer in inventory management, point-of-use, and warehouse management, especially in healthcare, so hospitals and clinicians have sustainable, reliable, and efficient access to what they need to provide the best patient care. 

Achieve’s investment will reportedly enhance and propel RiseNow’s capabilities in these already-established areas. 

“Procurement and supply chain are evolving at an unprecedented rate, which is both driving reliance on expert boutiques and exacerbating a longstanding talent shortage to manage next-gen software and processes that support these functions,” says RiseNow co-founder and CEO Matt Stewart. “Many companies rely on offshore talent, but we’re committed to creating opportunities for the next generation’s workforce here at home. I would not be here without those who apprenticed me, and this disruptive model is exactly what’s needed right now. So we’re delighted to announce the launch of RiseTalent, the first apprenticeship program for digital procurement and supply chain.” 

“RiseNow is bringing both domain expertise and innovative thinking to bear on addressing the unique challenges facing modern supply chains,” added Cassidy Leventhal, Principal at Achieve. “This investment goes beyond capital – we’re partnering with RiseNow to redefine how talent, technology, and processes intersect, ensuring their customers not only implement advanced systems but also have the people and operational frameworks to leverage them effectively.”