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, Scotland, 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

In the build up to 24 February 2025, the focus is on preparation and system testing. A transition period will follow this date for existing contracts, with full compliance required by the end of 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 those that fail to meet environmental or specified standards being excluded from future procurement.

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.

Procurement is changing. That much is clear.

At the forefront of this are advanced technology tools that are altering the way procurement lives and breathes. Indeed, the market is changing which is driven by digital agendas, sustainability initiatives and geopolitical problems which is causing Chief Procurement Officers to think on their feet. Customer expectations are also changing and this means that future-proofing supply chains has never been so important with many customers demanding quicker shipping times and more product availability all while delivering on their own sustainability ambitions.

With this in mind, here are five important lessons procurement learned this year.

1. People remain the secret sauce

Despite technology’s increasingly important influence, humans ultimately determine whether an organisation succeeds or not. With the ever-increasing complexity of global supply chains, the necessity of skilled and adaptable procurement professionals has never been greater. As technology matures, data-entry tasks that previously would have been best-placed for graduates can be undertaken by AI which means new starters need to learn more strategic skills quicker. If procurement’s digital transformation is to be managed successfully, people will hold the key. There is no doubt about that. 

2. A better understanding of generative AI

One of the biggest buzzwords of 2024 has been generative AI and the potential it has to reinvent procurement. For CPOs, GenAI is seen by many as a significant step forward in the value their teams can deliver to the business. This showcases the way to faster, more accurate decision-making, higher resilience, increased sustainability and lower operating costs. But it’s not all smooth sailing. There are challenges associated with implementing GenAI such as data quality and ethical considerations. These remain barriers to widespread use and are being continuously navigated in the world of GenAI in procurement.

3. Sustainable procurement isn’t an option anymore

Sustainable procurement isn’t something you can pick. Governments and consumers are past encouraging, there is now a real demand that organisations implement ethical and sustainable practices. Sustainability in procurement supports the green goals of an organisation and optimises the environmental, social and economic impacts over the lifecycle of a product or service. Sustainable procurement requires organisations to develop robust approaches to risk management in order to work out potential problems within their supply chains. Companies are focusing on carbon reduction targets and are working to reduce greenhouse gas emissions, eliminating waste from their supply chains and incorporating sustainable business practices. Stakeholders are now also implementing action ESG and corporate social responsibility initiatives as part of their sustainability agenda, thus driving the necessity for sustainable procurement.

4. Risk management strategies

If the past few years have taught us anything, it is the importance of having a back-up plan. In 2024, the geopolitical landscape is unstable and volatile with the threat of potential problems seemingly ever present. This year, several significant elections have taken place which always brings uncertainty with the ripple effect potentially leading to trade disputes and shifts in global market access. With this in mind, procurement teams should seek to diversify their suppliers while also identifying risks and using data-driven decision-making. By developing regional sourcing strategies, recognising geopolitical risks and expanding contingency plans can help limit exposure to these risks.

5. Supplier collaboration

Companies can’t treat their suppliers like a transaction any longer. The necessity of developing key, strategic partnerships and alliances in the modern world is too important. Previously a ‘nice to have’, delivering a great supplier experience is paramount to success in 2025 and beyond. In the wake of global challenges, organisations need support and cannot do it alone. Being open with suppliers to create a mutually beneficial relationship where both sides gain value is key.

Yesterday is history, tomorrow is a mystery.

While it forms part of a famous quote, the sentiment rings true to Chief Procurement Officers. 

Today’s world is filled with uncertainty and disruption, in addition to innovation and technological transformation as humans increasingly want things yesterday in many cases. In truth, we live in a fast-paced, digital-first environment with the acceleration of AI tools only adding speed to workflows and company operations.

But avoiding a scattergun approach and managing it successfully is a different kettle of fish. It can be tempting to rip up the carpet and adopt a new process because a rival is enjoying success, from an external point of view anyway. However, implementing any new tech or way of working for technologies sake could spell disaster and is a decision that requires strategic and critical thinking.

Simplifying challenges

With an eye on the CPO of tomorrow, Jack Macfarlane, Founder and CEO at DeepStream, believes that a procurement leader’s next step is adopting smart technology and solutions to solve day-to-day challenges, streamlining data and processes and leveraging the profound efficiencies and benefits that AI and other tech have to offer.  

“Tomorrow’s CPOs are driven by technological innovation, sustainability and the increasing importance of developing resilient supply chains to mitigate the effects of a changing world,” explains MacFarlane. “Increasing geo-political instability is affecting global supply chains and procurement strategies across the globe, leaving CPOs grasping for means and methods to withstand disaster, recover supply chains, and build a robust plan for the future.”

While technology transformation often takes headlines on the CPO agenda, an ever-increasing drive in procurement and beyond is sustainability and what initiatives organisations can implement to be more environmentally conscious. Ultimately, given pressure from government legislation and indeed customer demands, procurement functions often don’t have much room to manoeuvre. However, Macfarlane believes CPOs still have a choice about the way in which their companies go about being greener. “The growing concerns around sustainability and ethical sourcing are continuing to complicate existing procurement strategies,” he adds. “CPOs now find themselves in a role of increasing importance to the core ESG values of any business, and rightly so. Lastly, they will be using data-driven decision-making and real-time analytics to improve supplier management and optimise cost management.” 

Balancing transformation with sustainability

While Jenny Draper, Managing Director at Barkers Procurement, explains that one of the biggest factors shaping the priorities and skillsets of future CPOs is technological adoption. “Some procurement professionals may be wary when it comes to AI, and unsure how to integrate it into their day-to-day operations,” she says. “Embracing technologies such as AI, automation and data analytics will be crucial for CPOs to optimise procurement processes, identify cost-saving opportunities, and gain real-time insights into supplier performance.

“Another factor is regarding sustainability and ESG, which are becoming increasingly more important. ESG is being mentioned more frequently in corporate strategies, with pressure coming from the top down; CPOs are being tasked by boards and stakeholders to be accountable for ESG practices down the length of their entire supply chains. In order to do this accurately and efficiently, CPOs will need to have a process in place for tracking and monitoring their efforts, and reporting back on their successes.”

Procurement’s rise

Emma Edwards, Head of Procurement for Hard Services at OCS, believes CPOs must strive to align procurement’s strategic priorities and activities to those of the C-suite, allowing teams to focus on issues essential to the business using bold, measurable goals. She explains that tomorrow’s CPO will be an integral part of the business foundations, with ‘having a seat at the table’ a standout function. 

“They must build data-rich teams, passionate about delivery and earning trust across the organisation, and be great communicators,” says Edwards. “Appropriate stakeholder consultation and briefing is important to avoid frustration from customers and operational teams. If procurement isn’t visible, it can be hard for stakeholders to see its value. 

“Using category strategies and strategic sourcing effectively requires focus and discipline from extended teams. Supporting transition away from traditional value proposition and driving cost benefits towards mutuality with fewer, more strategic suppliers, requires stakeholder support but should provide efficiencies as suppliers benefit from potential pipelines. 

“Investment in people with strong focuses on commercial acumen, problem-solving and negotiation will differentiate teams and directly impact performance. CPOs must provide a culture offering optimum team performance.  

“With supply chains becoming more complex, and mobilisation more critical, supplier relationship management (SRM) is vital. This can be challenging, but good SRM plus digital innovation provides a platform for extracting value, transparency and ensuring suppliers meet performance obligations, anticipating and managing risk early.”

Tomorrow’s CPO

In Proxima’s Tomorrow’s CPO Report, published earlier this year, Thomas Udesen, CPO at Bayer, encouraged the next generation of CPOs to focus forward and meet tomorrow’s challenges head-on by harnessing innovation and digitalisation. “Avoiding the mistakes of the past is one thing, but coupling that with embracing new and innovative emerging solutions will be what sets you apart as a leader,” he tells Proxima. “Today’s technology has the ability to automate and drive efficiency through the legacy of the industrial age, moving focus away from demand control to impact and outcomes. This is what will drive progress.” 

Elsewhere in Proxima’s report, Laura Cook, Chief Procurement Officer at Primark, believes it is important not to rush into decisions and look to make long-term decisions. She lists three decisions – carefully consider your next move, the importance of varied experience and finding your network – as key challenges for a CPO to overcome. “Take the time to think about your next move. What type of environment is going to enable you to be yourself and thrive? Business direction and strategy, cultural fit, team maturity, and line management, to name a few, should all be considered.”

Forward-facing procurement

Looking ahead, tech transformation and a strong sustainability drive looks set to dominate procurement practitioners’ thoughts over the coming years. The efficiency created by AI acceleration has meant cost and time savings previously unimaginable so the responsibility now lies with CPOs and the C-suite to determine how these tools should be delivered strategically. While the future is unclear, one thing is certain. Tomorrow’s CPO is sure to be busy.

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.”

Exiger is on a mission to make the world a safer and more transparent place to succeed. 

The company aims to do this by revolutionising how corporations, government agencies and banks navigate risk and compliance in their third parties, supply chains and customers through software and tech-enabled solutions.

Brandon Daniels serves as Exiger’s CEO. A regulatory expert and technology practitioner, Daniels brings decades in senior management across the financial services, technology, life sciences and energy markets. Over the last 20 years, Daniels has managed some of the largest crises, compliance and risk management matters in the private and public sectors.

Given the unpredictable nature of geopolitical challenges and global disasters and the subsequent knock-on effect these events have on supply chains, Daniels stresses it is imperative to keep your finger on the pulse in order to stay ahead and mitigate problems. 

“Even if you look at the past month alone, in the United States there’s been Hurricane Helene, the Longshoreman strike and Hurricane Milton,” says Daniels. “It is one hit after another. Since the pandemic, we’ve really pulled back the veil on how fragile our supply chains really are. With climate change set to disrupt over 25 trillion dollars of assets over the next 20 years, I think the likes of natural disasters, man-made disasters and geopolitical tensions will continue to disrupt our supply chains, so we’ve got to get ahead of it. We’ve got to regain control and procurement professionals are at the front line.”

This is where Exiger comes in. 

Supply chain visibility

Exiger is a supply chain visibility, orchestration and risk management solution that helps customers to increase the resilience of their operations, reduce risk, and help drive cost efficiency throughout their organisation. Exiger helps customers with their most complex and critical issues from ESG to managing supplier financial health. The company empowers them to regain control of their supply chains when facing global challenges. According to Daniels, every challenge brings opportunity. But the real winners out of disruption are those who can achieve greater resilience. 

“Having visibility where you think you’re purchasing from seven vendors, but you’re actually purchasing from one and that vendor is in a high-risk zone that could be disrupted is key,” explains Daniels. “Firstly, you could contract directly with that vendor and use your volume to your advantage. That’s a pricing and cost management opportunity. And two, knowing that you only have one vendor and maybe diversifying away, that’s also a risk management opportunity. Companies are missing major opportunities by not gaining visibility into their supply chain.”

But with procurement and the wider world seemingly transitioning from one ‘black swan’ event to the next over the past few years, Daniels recognises the workforce is ‘exhausted.’ “People are overwhelmed,” he admits.

“Since the COVID-19 pandemic, we have all gone into this hyperdrive. Even though we’re working at home and people are remote, employees are still working all day. It’s a constant battle and a constant crisis. So the idea of saying ‘Well, if I have 1,000 vendors at my tier one that I’m managing today, and that’s already hard, how can I manage the 800,000 vendors at tier five?’ You just stare at this morass of data, this volume of suppliers and amount of risk. And you might say, ‘I just don’t want to know.’ And that’s where also AI can help us with ruthless prioritisation of what actually matters. That’s why we get up every day to help our customers to prioritise these issues and opportunities.”

DPW Amsterdam

DPW Amsterdam’s theme for 2024 was 10X and how a moonshot mindset can take companies from incremental to exponential impact. 10X amplifies the necessity for organisations to think and act 10 times bigger than their current capacity. For Daniels, he believes companies could be aiming even higher due to the potential value that can be tapped into.

“I think you should shoot for a 100X and land at 10X. But I think there are so many opportunities as we gain visibility into our broader supplier ecosystem that we’re missing today,” he says.

“Just because I have visibility or transparency into my supplier ecosystem, or because I can manage on a multi-tier basis, it doesn’t mean I need to. For the most critical things, it means that I need to prioritise those areas where I’m going to deliver the most cost savings, the most resilience or the most significant reduction in our risk. What we’re encouraging procurement and supply chain people to do is to drive reward out of this risk and focus on those opportunities where you can have your cake and eat it too. This means I can contract with suppliers that sit deep in my supply chain that are supporting all of the metals and microelectronics buying that I’m doing, and establish a relationship that’s going to reduce cost. 

“But here’s the important point. With that visibility, I can also demand more ethical supply chains. So now that I have visibility into those suppliers that are manufacturing the critical noble gases that I need in order to etch these semiconductors, I can also demand an ethical wage. I can demand a carbon-neutral supply chain, and I can give some of that savings back. If I’ve made 15% percent savings, I can say there’s a 3% premium because we want to source ethically. When I say we can 10X, it’s the compound value of both reducing risk and increasing cost efficiency.”

AI-powered Platform

Exiger delivers AI-powered supply chain visibility, orchestration and due diligence through the 1Exiger Platform and the AI engine, DDIQ. The world’s first purpose-built supplier risk technology has been developed to navigate the biggest risk and compliance challenges in 2024 and beyond. 1Exiger accelerates growth to organised fact-finding which allows for important decisions to be made quicker. 

“We actually started with just an AI tool that built business profiles on companies,” explains Daniels. “But it’s more focused on the data that we give the system as opposed to training on the broader landscape of open source data that can cause some hallucinations. We wanted to get to high fidelity business profiles. What generative AI is doing that is so unique is it’s making that multi-tier visibility and supplier assessment possible. It wouldn’t be possible for us to come here three years ago saying you can 10X in the same way today. It’s really been the fact that people’s eyes are open to the idea you can create net new data with generative AI. If I’m trying to find something out about 1,000 companies, I used to have to go out and research that.”

GenAI drive

Now, with the capabilities of GenAI, time-consuming and cumbersome fact-finding missions can be completed within minutes. Daniels is well aware of how GenAI has changed the game in generating data while also bridging a skills gap. However, Daniels insists that while procurement professionals are incredibly intelligent in what they do, they can’t do everything.

“Procurement and supply chain people are geniuses at cost, schedule, performance, vendor value creation, supplier negotiation, and market research focused on value-based sourcing. They’re geniuses, but they’re not trained risk managers or compliance people,” he explains.

“The second thing generative AI can do is it can help to bridge that skills gap. If you’ve had risk experts in your organisation feed it on how to handle situations, then those procurement people can rely on those decisions to say, is this within risk tolerance? Is this a vendor that we can accept? Is this a supplier risk that we should either mitigate or we should make a change to? And then finally, it can support that decision-making. I need to be able to document my decisions. I need to be able to create a history of why I did that. Generative AI can help us to automate those unnecessary tasks. Generative AI has a sweeping impact on procurement, supply chain, and in the business world overall.”

Find out more about Exiger here and follow Exiger on LinkedIn

“How you communicate determines whether or not you achieve your goals.”

It is fair to say that Caitlyn Lewis, Founder and CEO at Supplier Day, believes in the power of honest conversations. 

Since 2020, her company has partnered with some of the world’s leading brands to help them elevate their supplier relationships through high-impact in-person, virtual and hybrid events. Supplier Day’s mission is to create experiences that drive powerful relationships between procurement teams and their suppliers. In order to achieve this, Supplier Day’s team combines deep expertise in event design, procurement strategy and innovative thinking to offer a full suite of services that empower customers to succeed.

The idea to create the organisation came just after the beginning of the COVID-19 pandemic when supply chains were under pressure more than ever before. Due to the sudden shift from in-person to virtual events, Lewis realised the procurement space needed a partner who had the necessary tools to support the journey. This led to the birth of Supplier Day to help create strategic events and communications while delivering spectacular supplier events that drive real impact. Four years on, Supplier Day has grown into a trusted partner for procurement teams and worked with industry giants such as Siemens, Bayer and PepsiCo.

“Good communication is something that we aim to bring to every single event that we design for our clients,” explains Lewis. “But it’s also something that we hold really close within our team because essentially everything that we do and the value that we deliver for our clients is helping them to achieve their goals through building better relationships with suppliers. And that all starts with communication.”

A positive supplier experience can lead to resilient long-term supplier relationships, increased collaboration and improved supply chain performance. In the modern world, it is vital for companies to prioritise supplier experience as part of their procurement strategy in order to harness sustainable, mutually beneficial relationships with suppliers. Through Supplier Day, organisations can work with the company’s team to deliver impactful experiences that drive engagement, collaboration and measurable success. 

One of Supplier Day’s alliances is with Alexandra Tarmo, Vice President of Procurement at Kenvue. Speaking to CPOstrategy alongside Lewis at DPW Amsterdam 2024, Tarmo credits Supplier Day with bringing the outside in to drive transformation.

“Coming from a company that was newly formed, you need to find a new identity and work out how and when to engage with suppliers,” explains Tarmo. “The fact that Supplier Day brings us the outside in and reveals that your peers and competition are on the journey too is so important. Ultimately, if you don’t do it, you’re missing the boat and that has been a very big advantage in convincing leadership teams to go for it. The fact that Supplier Day knows how to drive this programme with our peers and competitors is hugely advantageous too. I’m a person of simplicity so if it has already been done and it works, let me just copy and paste it and use the same processes. It has helped us to convince management to feel confident it will work.”

With procurement and supply chain in the midst of its most exciting, dynamic era yet, Lewis believes the real challenge procurement faces is how companies differentiate themselves from competitors in a bid to win business. “I think what is really exciting is that it now comes down to the quality of that relationship and how you can pull real value out of a strong relationship,” reveals Lewis. “We’ve heard so much at DPW Amsterdam about technology and how that really helps to drive productivity and efficiency and I think that the big game changer will be for the companies and for the procurement teams that can then use that extra time to drive capabilities around relationship building so that they can extract more innovation.”

Looking ahead, Lewis is full of optimism for the future, particularly after going through a recent rebrand. “I’m just so proud as I think that it is a true reflection of the differentiation that we bring for our customers,” she explains.

“We talk about being unmissable and a large part of that is bringing that outside in. This is done for multiple companies across a range of industries for many different purposes across various cultures. We have a vast understanding of what different communication needs to look like. It means that we have that good foundation and then we are focusing on making it 10X better. What does being unmissable mean for this client? How is that going to look? Which again is that differentiation for every single client. It is that unmissable element and that’s what excites me. It’s what I get really enthusiastic about every time we’re sitting down with a client because I’m thinking ‘What’s that unmissable quality going to be for them?’

This year’s theme at DPW Amsterdam explored the mindset of aiming for 10X growth instead of an incremental approach. According to Tarmo, prioritisation is key in order to achieve goals for the coming year and beyond.

“The concept of 10X is non-negotiable,” she explains. “If we want to continue to be relevant and drive value, it’s the way to go. What I get is that we talk a lot about digital, data and systems. There are a lot of solutions and there is a lot of technology available for us as a function. The decision we need to make is where do I put my efforts? What do I prioritise? It is important to keep in mind that this is a space where the full value comes only when you bring everybody inside. What is the first priority I follow where I know I will get adoption and I will get all my team and my supplier on board to get the full value?”

Given the hype around new digital innovations such as GenAI tools like ChatGPT and Microsoft CoPilot, Lewis recognises how exciting the landscape is for procurement. However, she is quick to point out that despite the transformational advantages to leveraging new technology, they can’t be at the cost of replacing humans. “Having listened to Marcelo Stefani, CPO of PepsiCo, and Marc Engel, CEO of Unilab, on the main stage earlier, there is still this idea that AI can’t fix my toilet or do the laundry,” explains Lewis. “As great as this excitement about what AI can do and how this technology can make our lives so much easier, the human element remains so important. I think that the companies that are really going to differentiate themselves, both with their customers and with their suppliers are the ones that understand that. That’s my main takeaway from DPW Amsterdam this year.”

Moving towards 2025, Tarmo reveals that being transparent about what kind of relationship you wish to have with suppliers and where they fit into the journey is vital. “There is a necessity to be very open and transparent on what we want and what type of relationship we want to have with our suppliers,” she says. “It’s important to ensure that whatever we build as new technology, you always remember that you also need to engage your suppliers on that journey. You should question how to onboard them and make their experience easier.”

Lewis aligns herself with Tarmo’s view of honest communication with suppliers in order to grow in a mutually beneficial way. “We talk so much about user experience when we are designing products or services for consumers and essentially it’s that same value, but doing it for suppliers,” explains Lewis. “We have an approach at Supplier Day that is “Starts with Suppliers” and as Alexandra said, once you’re super clear on what it is that you are trying to achieve, you then want to put yourself in the shoes of your suppliers and work out how you can communicate with them in a way that relates to them and allows them to see where the value is in having a relationship with you as their customer.”

Read more about Supplier Day here.

“We want people to understand that suppliers are very important in their ecosystems.”

Costas Xyloyiannis, CEO of HICX, is passionate about the value supplier experience brings to procurement and supply chain. 

And he’s not the only one. Indeed, there has been a boom in popularity in recent years following decades of supplier experience being seen as a ‘nice to have’ rather than a necessity. Today, companies know they cannot go alone, particularly against the backdrop of a wave of global disruptions and geopolitical challenges.

Following the success of last year’s inaugural event, HICX Supplier Experience Live returned to the Tobacco Theatre in Amsterdam to take the conversation one step further. Once again recognised as an official DPW Amsterdam side event, HICX Supplier Experience Live’s mission is to help organisations use supplier experience to remove friction and become a customer-of-choice.

Xyloyiannis believes as the global procurement landscape evolves, the antiquated way of dealing with suppliers as a transactional deal is shifting to more of a key, strategic relationship. “This shift has happened because the objectives of procurement have moved,” he explains. “Of course, savings is still a big component of it. That doesn’t go away, but it’s not the only component anymore. You have risk, sustainability, and a lot of other requirements which are now also being considered. In order to do these things successfully, the focus shifts to working with suppliers more closely. Supplier collaboration is key.”

Speaking exclusively to CPOstrategy, Chief Marketing Officer Anthony Payne aligns with Xyloyiannis’s view and believes supplier experience now sits as an important item on the CPO agenda. “I’d like to think the boost in popularity is because the core message of supplier experience is resonating and people are recognising that the old ways of treating suppliers as an asset to be milked or a value extraction point don’t work anymore,” he tells us. “Companies are realising that it’s about the strength of their entire ecosystem in order to deliver to their own internal customers. If I’m a manufacturer, how do I work closely with my suppliers to collectively deliver value to the end customer? What supplier experience is to me is the vehicle to remove friction and figure out how companies and their suppliers can work better together.”

The half-day event began with a welcome from Payne who gave an introduction into the world of supplier experience, the market developments that have happened so far and given rise to the strong community of evangelists who have placed the topic back on the agenda.

Payne handed over to futurist Dr Elouise Epstein, Partner at Kearney, who delivered a keynote on how leaders can leverage the importance of supplier experience in a disrupted world. As supply chains can no longer count on legacy technology and processes, she explained the importance of embracing digital innovation to build resilient systems for the future. Epstein also revealed how automation is taking over last-mile delivery and related her own personal experiences with self-driving taxis while injecting her trademark humour into the session.

After Epstein was a panel session with Oliver Hurrey, Founder at Galvanised, Marc Munier, CEO and Founder at DitchCarbon and Alexandra Tarmo, VP Procurement Centre of Excellence at Kenvue. While the theme was around delivering climate-conscious decision-making in ESG management, Hurrey opened the floor and asked the audience for themes to engage with the panel. One of the topics discussed was the importance of managing the challenge between regulation and reporting while still also driving change.

Later, Xyloyiannis sat down with Payne for a conversation around supplier data. Important questions were answered regarding how the tech stack should be able to address supplier data challenges and how companies can begin a supplier data project. Following this session, Duncan Clark, Director of Product Marketing at HICX, explored the topic of supplier marketing and how it can help improve supplier adoption and engagement.

Finally, Payne hosted a panel discussion with Laurens Van Den Bovenkamp, Senior Director Supply Chain and Marc Bengio, Senior Director – Head of Technology Enterprise Procurement at Johnson & Johnson. The duo focused on J&J’s revolutionary supplier digital collaboration project and uncovered how supplier interactions are boosting internal and external experiences.

Speaking to CPOstrategy following their sessions, Munier, Hurrey and Tarmo are all in agreement about how positive the future of supplier experience is within procurement and supply chain. “Whenever you talk about any procurement issue, it’s always about trying to engage with suppliers correctly in order to get them to do something but actually people don’t often think enough about what the supplier might need from a relationship,” explains Munier. “I think HICX really enables you to do that.”

Hurrey adds that the key, particularly when dealing with SaaS software, is down to adoption. “Unless you focus on the supplier experience, procurement is not going to get what it needs from the supplier and you’re not going to get that customer of choice,” discusses Hurrey. “This is because the suppliers, particularly of carbon, don’t know what you’re asking for. This is why I think it’s incredibly refreshing to hear HICX talk about supplier experience because the users of the platform that will give you the data that will enable you to make decisions are the suppliers and the buyers. It’s really important to hear that.”

Tarmo believes one of the biggest challenges in procurement is navigating how best to engage with suppliers. “Supplier engagement and collaboration is critical for everything we do in procurement,” explains Tarmo. “Everyone in procurement wants to understand how to reach out to suppliers and how to engage with them correctly. I think we also have an increasing number of requests from our suppliers so the task is about making sure we continue to engage and answer our requests because without suppliers we cannot move the needle.”

Supplier experience is certainly on an upward trajectory. Watch this space.

“We believe.”

That was the message from DPW Amsterdam’s powerful opening show. The song, performed by Elvis-E and the ZA-EL Gospel Choir, was created exclusively for the event and kicked off the highly anticipated meet in the Dutch capital.

And it is safe to say the world’s biggest and most influential tech event in procurement and supply chain lived up to its billing. With 1,300 attendees from 44 countries across 32 industries and 72 sessions featuring 140 speakers across five stages alongside 120 sponsors, 84 startup pitches over 14 tech domains, the numbers speak for themselves. Procurement gets excited about DPW.

DPW’s journey

Indeed, the story of how DPW was born is truly inspiring. Founder Matthias Gutzmann had grown frustrated at the lack of procurement conferences to showcase his previous employer Vizibl and decided to create the solution himself. He left his job in New York City, moved into his parents’ house and invested all his savings to launch DPW. Months later, DPW’s launch conference in September 2019 welcomed 400 industry leaders while being praised from across procurement. Fast forward five years and DPW Amsterdam has grown from strength to strength and even launched its first event in North America last summer back where it began for Gutzmann in New York.

DPW Amsterdam strives to deliver a great experience and its competitive advantage is it doesn’t solely revolve around procurement. DPW Amsterdam blends talks, technology, networking, performances, culinary and wellness into one immersive experience that inspires attendees and keeps them coming back. 

Every year, DPW selects a different theme to set the tone for the conference’s conversation. This year, 10X was chosen which is the idea that organisations should aim for a moonshot mindset instead of seeking incremental growth. In procurement and supply chain, 10X thinking essentially means fostering a progressive diverse culture where calculated risks are embraced, reimagining and rewiring traditional processes, moving from legacy tech to disruptive technologies, and leveraging AI and automations that deliver tenfold improvements in efficiency, cost savings, and supplier relationships.

DPW Amsterdam 2024

Held once more at the historic former stock exchange building, the Beurs van Berlage, Gutzmann and CEO Herman Knevel had a few special tricks up their sleeve. New this year were tech safaris which were guided group tours operating throughout the expo halls. Due to the 25,000ft² of exhibition space within the building, it can often be challenging to find your way around. However, the introduction of these tech safaris, which were tailored to specific themes, allowed attendees to gain real insight into the areas they cared the most about. Also new this year was a podcast studio which covered topics from AI and procurement orchestration to women in procurement and sustainability. 

As is customary for DPW Amsterdam, the conference did not disappoint once again with its speaker line-up. The headliner was Paul Polman, former CEO of Unilever, who delivered a spectacular keynote on how purpose-driven leadership can drive both profitability and positive impact. Polman, who is a globally recognised thought leader in sustainability, also took to the stage to challenge business leaders to embrace Sustainable Development Goals with urgency and courage in a separate session on exponential climate action. 

Driving Procurement

One of the biggest draws of DPW Amsterdam is there is something for everyone. Sessions covered a range of topics including how to leverage data analytics and AI for guided decision-making, how to build and rethink procurement organisations with a tech mindset and how to scale 10X efficiency and impact, among others. Across the two days, there were more than 70 learning sessions spanning keynotes, workshops and pitches across seven stages. The stages were Centre Stage, Sponsors We Love Stage, 10X Stage, Masterclass Stage, CPO Summit, Expo Pitch Arena and Startup Academy. Some of the speakers across the event included the likes of Jennifer Moceri, Chief Procurement Officer at Google, Marc Engel, CEO at Unilabs and Rujul Zaparde, CEO at Zip. And for those unable to attend, DPW live-streamed the action via social media to allow thousands more people to watch the important keynote sessions along at home.

As many attendees travel to Amsterdam from other countries, there are official DPW Amsterdam side events the day before the conference begins. A padel tournament was arranged for the first time which proved a hit, alongside ORO IMAGINE, while HICX Supplier Experience Live also returned for its second year. Add in the Opening party, the Zip Canal Cruise, After Drinks and the Grand Finale Closing party, DPW Amsterdam 2024 ensured no attendee was left without plans.

Digital Procurement Boom

The conference has grown significantly over the years. Last year’s theme of ‘Make Tech Work’ laid the groundwork for technology transformation and focused on how to turn digital aspirations into a reality. As procurement’s current favourite word, generative AI, continues to create conversation and make waves within the function and beyond, collaborating to find the best strategies to leverage large language models and advanced technologies is the key to success in the modern world. 

Speaking exclusively to CPOstrategy following the event, Gutzmann was in no doubt about DPW Amsterdam’s direction of travel. “I’m overwhelmed. The final word is always with our sponsors and attendees and the feedback I’ve heard across the board is amazing. I really think this was our best one yet.”

Knevel was in full agreement with Gutzmann and revealed that he felt the momentum upon entering the building. “The energy in the room across the two days was contagious. There was a genuine interest in what these solutions are bringing to the procurement space.”

Future

And the duo of Gutzmann and Knevel have no plans to slow down yet. With a final year planned with the Beurs van Berlage as the venue, they are in the early stages of locating a new home for DPW Amsterdam from 2026 onwards as the conference continues to scale exponentially.

DPW Amsterdam is a hub of collaboration. It is an event that truly brings real-world challenges to the front of the agenda and offers real, actionable guidance on how to overcome obstacles. While today’s world is ever-changing, procurement has the keys to unlock the door. Let’s go 10X. 

Why come to DPW Amsterdam? What, in your mind, makes this event so special and such a popular meet in the procurement calendar? 

Edzard Janssen, RBI: “For me, it’s a very good overview of procurement technology trends. It asks, ‘What are the business problems and the solutions to business problems?’ It’s two days where I invest in getting a good overview, talking to people, and networking.”

Jurriaan Lombaers: “From the beginning, it’s been authentic. It’s great to see all the startups and it triggers your innovation and entrepreneurial mindset to think ‘What else can we do?’ Instead of just doing more of the same. And likewise, it creates a super exciting platform for the startup to show what they can do and what they can deliver. DPW grows every year and it’s a great networking event to meet lots of old friends and make some new ones. It’s super special.”

Kristina Andric, Tetra Pak: “To me, what really describes this event is inclusiveness and collaboration because it brings startups and the corporate world together and shows what kind of amazing synergies that can yield. No one company has all the solutions in one place. However, together we can leverage the strengths and perspectives of each other and then amazing things can happen.”

Chris Platts, SSE: “It’s an amazing event. It’s obviously full of energy. We think it’s the best event for procurement tech, and I get a lot from being here and reflecting on what’s next, what people are doing, what best practice is, and how we can leverage some of that. And then hopefully we can work with some of the vendors and help some startups. I love this event.”

Sopan Shah, IHG Hotels & Resorts: “It’s been mind-blowing. It is so exciting to be in our industry, at a conference that is focused on procurement technology. We’re at the precipice of this dramatic change in digitalising everything we do and the way we run our supply chains, and the people that are building that future are here at DPW. And so it’s hugely exciting to see this kind of startup environment with new and established players that are engaging, showing use cases, building connections, building networks. It’s hugely empowering. My team is getting a long to-do list from me after this, but I know they’re excited.”

What are some of the strategies that leaders can adopt in order to achieve 10X thinking? 

Iris van der Harst, Equans: “My main focus is to reflect my operating model every year. Is my team of procurement specialists still adding value and are we doing the right thing for our business and stakeholders both internally and externally? Also, are we bringing in the right innovations to drive 10X? It’s always really easy to blame it on the other departments but I think it’s important to look at what you can do within your own team and operating model. As a CPO, I set the vision and the strategy, but I don’t forget my team and I need to constantly train and educate them about what’s going on. I might lose some people along the way, but it must be their decision, not that I didn’t give them enough attention or opportunity to grow.”

Christophe Villain, Nestle: “You need to change the mindset of your people, and showcase the opportunities available to your colleagues. It’s also about your data maturity and foundations, because the next generation of procurement activity will be strongly data-based, and you’re relying on that data accuracy, availability, and accessibility. You’ll also need to challenge your processes and ways of working.”

Kristina Andric, Tetra Pak: “One of the key reasons is innovation. While it’s a huge competitive advantage, in terms of employee engagement striving for 10X gives teams a very strong sense of purpose as well as unity. I believe it is vital for companies to have a clear vision and ensure the right amount of emphasis on talent, a culture of innovation, and demonstrate adaptability to change.”

How would you describe the past few years in procurement as a result of advanced technology?

Edzard Janssen, RBI: “Software as a service (SaaS) was a big leap forward. We started rolling out our contract management service in 2017. Normally this would have been a multi-year exercise across the whole group, but we did it in 18 months. That would never have been possible with a traditional on-prem solution. Then there’s the cloud. One of our banks is located in Ukraine, and of course we had to think about what would happen if our data centres would be affected by the war. So we moved everything to the cloud in a couple of months. That would’ve been uns]thinkable in the past. The speed of how you can do things is completely different.”

Sebastien Bals, Merck: “GenAI will enable us to move faster. The whole topic around chatbots and automating certain types of interactions with your stakeholders is definitely something that, through GenAI, will be able to go quicker. What I do see is that we’re not leveraging it yet.

“And the reason why is because data is so crucial to the entire picture when leveraging GenAI. So it starts with how we translate everything that is articulate – meaning everything that we can speak or we can write down –  and transfer that into data so that then it can be commoditised as a streaming service so we can start streaming knowledge. These large language models that GenAI is based on will enable us to transfer the knowledge that is in our heads more freely but secondly, also take away some of the time that people are spending on activities that no longer need to be spent on.”

Chris Platts, SSE: “Things are progressing, advancing, and innovating all the time. Obviously the big theme is AI; that’s front and centre of everything. When I started procurement, we had SAP and we did sourcing via email. It wasn’t any more sophisticated than that. And now, I don’t know how many digital tools we’ve got at our disposal. I’m pretty sure we’re not yet making the best use out of them yet.”

In your view, what is the best way procurement professionals can overcome data quality challenges when implementing advanced technology, like GenAI? 

Alexander Pilsl, TeamViewer: “That’s the million dollar question. I think it’s always been a challenge. I’ve spent years in consulting and seen many, many different procurement departments, and I’ve never seen good data quality. It just doesn’t exist. It’s an illusion that we try to have. It’s something to aspire to. It’s about understanding the flaws, where your data lacks, and what you can improve in some select areas. Have a use case that you actually want to achieve with your data, and work your way back from there. What does the data have to provide you with so that you can actually solve that use case? Then you can start fixing those areas wherever you can.”

Christophe Villain, Nestle: “You need to rethink your data foundations, define which your key assets are, define how you govern and input your data, and make data as relevant as any other achievement on the people performance agenda. If there’s no component of data, you’re just a recipient and you are not owning the outcome. And that’s critical going forward.”

Sopan Shah, IHG Hotels & Resorts: “Data is complicated. I think first it starts with the industry you’re in and the types of data that you’re dealing with. Fundamentally, some of the new technologies are going to allow us to take either dirty, unstructured data, and very quickly leverage AI machine learning and other tools to help clean up that data. We are seeing that again already as we’ve moved into some of our new procurement technologies.

“We’ve historically had poor data and these systems have very quickly shown us how poor that data actually is. It really changed the concept of how we think about it, because it’s not necessarily people on our teams that need to be reviewing, understanding, and dissecting that data – it’s actually the systems and the tools that are analysing it and giving us recommendations that allow you to get the right information out of poor data. So I think data is a promise. Is it perfect? No. Is it going to take time to get there? Yes. But I think it’s a promising start.”

What are the biggest considerations that CPOs need to think about when seeking to implement tools like GenAI as a business strategy in procurement? 

Alexander Pilsl, TeamViewer: “It’s really that element of procurement being an ecosystem function. A lot of the strings come together in procurement. For example, when I’m going out looking for a supplier, I check their client status. I want to know if they are customers of our company before I become a customer of their company. That’s two data bullets already that you need to check, and then you do all your external sources, your risk analysis, third party databases, check their risk status, check their financial information. There are millions of data points that come together in procurement when you make a decision. And I think getting all those right, but then also not getting distracted by the sheer numbers, is probably the single biggest challenge in business and data.”

Sebastien Bals, Merck: “I think the biggest obstacle is ourselves. Are we truly experimenting or adopting enough or are we being sceptical? GenAI hallucinates, but we’re also critical thinkers. We’re not robots. I believe that all of us who are currently working in procurement could see whether GenAI is hallucinating or not and could adjust.”

Michelle Baker, Virgin Money: “They talk about humans in the loop, which is interrogating what comes out of the black box. The hallucinations are that it’ll confidently make up garbage and confidently tell you where it came from. So essentially source the garbage. However, I believe that I have enough experience to be able to write 85% of a supplier relationship management strategy in ChatGPT to say, ‘Well, that is garbage’.

“I have experienced enough to know that it is incorrect. I don’t think that we should sacrifice our critical thought. For any of us who’ve been to university, the requirement not to plagiarise the requirement and to reference our source of data is important. If you’re going to be leaning on a tool like Copilot or ChatGPT, it doesn’t necessarily mean that you have to leave your brain at home. You can actually use your brain to question whether something makes sense and then poke a little further. But it certainly will help you get going in a way that starting with a blank piece of paper wouldn’t have.”

Is this the most exciting time to be in procurement and supply chain?

Iris van der Harst, Equans: “I think so. But it also was five or 10 years ago. I’ve been in procurement for about 15 years, and before that, I was in more commercial roles because in my time there weren’t many further education courses in procurement that you could do. Everyone just grew into procurement from different backgrounds. The reason why I still love being in procurement is that it evolves all the time. It’s always changing and it’s getting increasingly relevant. It is an exciting time and I think it still will be in 10 years.”

Jurriaan Lombaers: “It’s a great profession and I am a passionate procurement professional. I think coming out of COVID-19, we earned a lot of credibility as a procurement function, which should have enabled procurement organisations to have even more impact. I think it’s exciting because of all the technology enablement, but I think that’s just one part. The much bigger thing is all the change management. Scaling fast is all about adoption.

“There’s still a long way to go to get these things embedded into the organisation. That’s why you have to start small and take people by the hand. People might be a bit frightened about all the automation on offer because it is taking work away that they have done for many years. What we need to learn is that it’s taking some of the more administrative or repetitive work away. Secondly, as part of 10X, there’s so much more that the business is asking of procurement that needs to be done that can be utilised by the time you gain from further automation.”

Michelle Baker, Virgin Money: “Technology has always been an interesting thing and I’ve grown up with it. So when I started work, there were no PCs on desks. The only person who had a typewriter was the managing director and secretary. So technology for me has always been really interesting in terms of how it can augment our lives. If you look at DPW behind me, we’ve got 1,400 attendees excluding exhibitors. That is a massive number of people who are interested in technology now. If we’d had the same conference 10 years ago, we’d barely have filled a room of 100 people. I think there’s a sense now that data analytics, digital, all of these cool words actually have an impact upon your business and it’s an inescapable, unavoidable impact.”

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.” 

Koray Köse, futurist and expert in geopolitical risk, supply chain technology, and strategic advisory, has announced the launch of Kōse Advisory. Specialising in providing actionable insights, Kōse Advisory focuses on the convergence of people, processes, and technology to create tangible business impact for its clients.

Kōse Advisory: The Vision 

Kōse Advisory’s vision, according to its founder, is to inspire and empower technology companies, corporations, and investors to navigate an ever-evolving landscape by helping them strategise for visionary success, prioritise transformative initiatives, and elevate their operations through innovative technology and AI. The organisation has committed to managing the convergence of people, processes, and technology. It will do so with a focus on effectiveness, responsibility, and competitiveness. 

Sustainability is also central to its founder’s vision for the business. Kōse Advisory’s services also focus on ensuring the organisation’s comittment to a more resilient and responsible future.

Kōse Advisory will serve a wide range of clients, including:

• Technology Firms (Startups & Scale-ups). Companies eager to advance in market presence, investor and analyst relations, and efforts to scale.
• Corporations on a Journey. Enterprises seeking technologies to enhance their value and supply chains while becoming more sustainable and resilient.
• Venture Capital & Private Equity Firms. Investors exploring their next supply chain technology investment or looking for industry expertise to support their current portfolio through mergers and acquisitions.
• Events & Conferences: Organisers seeking cutting-edge, research-driven content, engaging public speakers, and dynamic panel discussions.
• Research Organizations and Consultancies. Firms looking to collaborate on advancing their coverage in AI, advanced technologies, and supply chain risk management.

“In today’s interconnected world, sustainable supply chains are not just a competitive advantage; they are essential for long-term success. At Kōse Advisory’s, we empower organisations to harness the potential of AI and emerging technologies, transforming challenges into opportunities for growth and resilience,” said Köse. “We are dedicated to providing strategic insights that not only enhance operational effectiveness but also foster a responsible and sustainable future.”

Kōse Advisory’s mission is to deliver actionable strategies and cutting-edge insights to technology companies, corporations, and investors. Going forward, the company will focus on creating tailored strategic plans. These plans will prioritise key initiatives, and leverage advanced technology and AI to drive operational excellence. “Our research into technology, geopolitics, and economics informs our approach to enhancing global value chains and procurement. We guide clients through every phase of transformation—from strategy development to implementation—while integrating sustainability to achieve lasting benefits for businesses and the environment,” added the company in a press statement. 

Looking back over the last few years, it’s no wonder that procurement leaders are worried. 

From geopolitical conflict and a pandemic to material shortages and inflation, the decade so far has been defined by disruption. It’s also re-defined supply chains, seeing nearshoring and protectionism start to supplant thirty years of globalisation. And none of this looks like it’s about to change any time soon. 

According to a new report from Gartner, supply disruption is currently sitting at the top of procurement leaders’ list of reasons to lose sleep. However, it’s far from the only challenge keeping the industry’s CPOs up at night. 

“CPOs’ concerns about supply disruptions reflect the often unpredictable nature and potentially existential impacts of these events,” Andrea Greenwald, Senior Director Analyst in Gartner’s Supply Chain practice, commented. “They are coming to understand that the reactive measures they have employed to manage risks over the past four years will not be sufficient for the next four.”

Competing anxieties

Gartner’s latest survey was conducted from June through July 2024, and interviewed 258 sourcing and procurement leaders. The data, Gartner claims, intends to help CPOs understand and prioritise the most significant risks that could impede procurement operations, as well as what actions can be taken to manage them effectively.

The responses revealed a strong tendency to worry about supply disruptions. Almost half (42%) of respondents listed it as the biggest risk procurement faces, including natural disasters and transportation issues. According to Gartner, this prioritisation is due to the unpredictability and speed of such disruptions as well as their magnitude. It’s worth noting that the findings are from the months before two severe hurricanes hit the United States. Since then, Helene and Milton threw millions of lives into disarray and severely disrupting supply chains across North America. With hindsight, the data feels almost prescient. 

After supply disruption, macroeconomic factors, including economic downturns, inflation, and other economic factors, rank as the second most significant risk. These factors, while easier to predict, can still have a major influence on long-term procurement strategies.

Geopolitical issues, including tariffs and regulatory changes, and compliance issues, including regulatory and contractual risks, tied for the third most significant risks. 

Responding to the risks 

Gartner’s report recommends that CPOs manage these risks by taking the following steps. 

• Assess and prioritise risks: CPOs should evaluate the impact of all major risk factors. They should then prioritise them based on their likelihood, impact, and speed. This includes considering organisational maturity and industry-specific factors.
• Develop and/or strengthen partnerships: Segment suppliers that provide critical goods and services to the organisation. Then they should implement techniques to proactively safeguard the organisation.
• Navigate internal complexity: Collaborate with strategy, finance, and legal teams to address macroeconomic factors and compliance issues effectively.