Procurement in 2025: Predictions and Priorities

Join procurement experts Zach, Natasha, and Conrad on Proc-N-Roll as they share their bold predictions for procurement in 2025. From mastering the basics and aligning priorities with business goals to navigating the rapid rise of AI and emerging technologies, this episode dives into how organizations can evolve amidst industry challenges. Explore the shift from cost savings to enterprise-wide value, the critical need for talent development in an automated world, and the growing role of procurement in managing supplier risk. Packed with insights and practical takeaways, this conversation prepares procurement leaders to thrive in a transformative year ahead.

Watch now or read the transcript below.

Transcript: Proc-N-Roll 03 | Procurement in 2025

Zachary | Welcome back to Proc-N-Roll! Today, we’re looking ahead to the future of procurement in 2025. Natasha, Conrad, what are your top predictions for the year ahead?

Natasha | It’s time to get back to basics! While technology continues to advance, many companies still struggle with fundamental procurement practices. In 2025, I predict a renewed focus on things like operating models, talent development, and aligning procurement priorities with business objectives. We also need to find ways to marry the maturity of technology with the maturity of procurement organizations. Finally, I think we’ll see a shift from focusing solely on savings to a broader emphasis on value.

Conrad | I agree that technology will be a major focus, driven by the excitement around AI and automation. Executives are expecting procurement to become as easy as shopping on Amazon, and they’re willing to invest in technology to make that happen. Talent will also be a critical issue, as the demand for skilled procurement professionals continues to outpace supply. And finally, risk management will become even more important, with CPOs increasingly taking on the role of Chief Supplier Risk Officer.

Zach | Those are all great points. I’m seeing a similar trend toward getting back to basics, but it’s complicated by the rapid pace of change in procurement. We’re moving from a focus on cost to value, from category management to enterprise-wide impact.

Natasha |  Zach, do you see these trends across a wide range of companies?

Zach | Yes, I think the need to get the basics right is pretty universal. Many organizations have invested in technology, but now they’re realizing that they need to mature their processes and operating models to maximize the value of those investments.

Conrad | I think the need for continuous improvement is a constant, regardless of the maturity level of the organization. We’re always striving to get better.

Natasha |  And that requires investment. Procurement teams need the resources to eliminate inefficiencies, streamline processes, and elevate their capabilities.

Zach | Conrad, you mentioned talent as a key trend. Can you elaborate on that?

Conrad | I think the talent shortage in procurement is only going to get worse. We’re seeing a shift in supply and demand, with not enough qualified professionals to fill the growing number of procurement roles. This is compounded by factors like an aging workforce, immigration challenges, and the changing nature of work.

Zach | So the demand for specific skill sets is changing as well?

Conrad | Absolutely. We need people who can manage stakeholders, understand technology, and navigate an increasingly complex risk environment.

Natasha | I think this will force companies to focus on developing talent from within. We need to upskill our existing teams and prepare them for the future of procurement.

Conrad | It would be amazing if we could just download our experience into our team members! But I agree that there’s no substitute for real-world experience.

Natasha | AI can be a valuable tool, but it’s only as good as the people using it. We need to ensure our teams have the skills and knowledge to leverage AI effectively.

Zach | So how can procurement leaders get ahead of the AI curve?

Natasha | It’s about self-learning, talking to peers, and engaging with suppliers. We need to be proactive in understanding the technology and its potential applications.

Conrad | We need to get our hands dirty and experiment with AI. We can’t lead from three levels above the work.

Zach |  And don’t forget to tap into the knowledge of your team. They’re already using AI in their personal and professional lives.

Natasha | That’s a great point! There’s a real opportunity for collaboration and knowledge sharing between generations.

Conrad |  I love that idea. We can learn a lot from each other.

Zach | Conrad, you also mentioned the increasing importance of risk management. Can you tell us more about that?

Conrad | The regulatory landscape is becoming increasingly complex, with new requirements related to privacy, sustainability, human rights, and more. Procurement is on the front lines of managing these risks, and we need to be proactive in ensuring compliance.

Zach |  Natasha, do you agree that risk is a growing concern?

Natasha | We’ll have to save that discussion for another episode!

Zach | Sounds good! We’ll definitely do a deep dive on risk management in the future. For now, I want to thank you both for sharing your insights. We’ve covered a lot of ground today, from the importance of getting back to basics to the evolving role of technology and the growing emphasis on risk. It’s clear that 2025 will be an exciting year for procurement.

Conrad | I’m looking forward to revisiting these predictions next year and seeing how they hold up.

Natasha | Me too! It will be interesting to see how the procurement landscape evolves in the coming months.

Zach |  Thanks for listening, everyone! We wish you all a successful and innovative 2025.

This transcript has been edited for clarity while maintaining all substantive content