As the year draws to a close, it's customary for corporate blogs to reflect on the past year's developments and offer forecasts for the upcoming year. In this spirit, we aim to examine the key challenges that have engaged the industry and, more specifically, procurement organizations throughout this year, as well as the obstacles they are expected to face in 2025.
Purchasing Trends – What Kept the Industry Busy in 2024 Let us briefly summarize the critical milestones that 2024 brought – or at least those that have affected, and will continue to affect, the industry. The ongoing Russia-Ukraine war is still disrupting supply chains and logistics routes, and it is influencing global food prices and energy supply chains. Other force majeures, such as the earthquake in Turkey and Syria, as well as in Taiwan, have caused infrastructure damage, factory closures, and transportation breakdowns. Geopolitical tensions in the Middle East have affected oil and gas supply chains, impacting industries that rely on energy imports. Industry sectors such as steel, chemicals, cement, and automotive, which are highly energy-intensive, were hit especially hard. Many factories were forced to slow down or even temporarily shut down production.
A recent development worth mentioning, as it will have significant impacts on the global economy, is the reelection of U.S. President Donald Trump. Experts and economists fear a repetition of his first term, which was characterized by protectionist trade initiatives, such as higher tariffs and customs duties.
1. Sustainability in Procurement: the jungle of regulations CBAM, CSRD, LkSG, EU ETS, CSDDD, EUDR, ESRS, GRI, ESG: The Jungle of Emerging EU Regulations to ensure sustainability in procurement. The EU has passed numerous ESG regulations as part of the Green Deal and the EU Taxonomy, which increasingly impose requirements on companies regarding their reporting and due diligence obligations. These regulations also focus on the sustainability, monitoring, and decarbonization of supply chains, creating a complex and evolving regulatory landscape.
ESG demands will become a substantial part of organizations' strategies and are unlikely to disappear anytime soon. A recent KPMG study shows that 66% of procurement leaders believe that growing regulatory and obligations regarding sustainability in procurement will significantly impact strategic sourcing decisions over the next 3 to 5 years.
2. Procurement in 2025: Time to shine It is common knowledge that every crisis also presents an opportunity for growth. This is certainly true for procurement organizations. Over the past four years, which brought us many crises, procurement teams had to go the extra mile. Often underestimated, these departments have proven their worth – and in 2025, it will be their time to shine.recent survey by SAP and Economist Impact , involving 2,307 C-suite executives across industries, highlighted how external pressures are driving the growth of procurement organizations. The "hidden champion" is evolving from an operationally driven function to a value-driven executor, ensuring business success in modern enterprises. Procurement no longer operates in silos but collaborates closely with other departments such as development, production, and logistics. Procurement now works across departments, driving organizational goals and influencing business strategy. This evolution is increasing its influence in long-term planning. As expectations rise, procurement's role is being reshaped, breaking down barriers and delivering greater value to modern enterprises.
3. Purchasing Trends 2025: Building Supply Chain Resilience While the Trump administration is most likely to introduce protectionist initiatives, manufacturers worldwide must protect their own supply chains to ensure the availability of goods. Supply chain resilience is the (not so) new mantra, accelerating the need for nearshoring strategies. To make their supply chains resilient enough to withstand constantly changing markets, effective risk management must be in place. It is crucial to quickly understand the effects on their supply chains and make data-driven decisions, such as contingency plans. Even better, proactive risk management can help anticipate and mitigate some risks, minimizing their impact. Early in the upcoming year, procurement teams will need to prove what past crises have taught them in terms of risk management – changes in US trade policies are expected.
4. Overcoming Procurement Challenges with Transparency and Data Quality According to KPMG’s industry survey , implementing data analytics is seen by procurement leaders as the single most important activity they will focus on in the next 12–18 months. With the right tools in place, procurement organizations will no longer struggle with fragmented systems, but will benefit from a single source of truth that consolidates all relevant data.
5. AI in Procurement A blog post on procurement trends wouldn't be complete without mentioning one crucial topic: AI. Companies need to recognize that AI is not just a technical upgrade within their digital transformation but a transformation in itself. By automating repetitive tasks, processing vast amounts of data, and providing real-time insights, AI enables companies to make smarter decisions, act more cost-efficiently, and secure a real competitive advantage.
6. Procurement Roles 2025: Balancing Talent Acquisition and Upskilling Lastly, a shift in procurement roles is expected for 2025. Instead of heavily relying on older workers , companies should focus on attracting younger talent. Knowledge transfer remains a crucial aspect of maintaining a certain skill level within the organization. However, rather than hiring new talent immediately and hoping for a quick return on investment, companies should consider upskilling initiatives for their existing teams.
To wrap up, companies must prepare for an exciting and challenging year in 2025. Ongoing globalization, geopolitical tensions, and increasing demands for sustainability and risk management will significantly shape procurement strategies. In this context, the use of digital tools, especially in data analytics and AI, will be crucial. These technologies enable companies to make smarter decisions, build more resilient supply chains, and secure long-term competitiveness. Those who recognize the opportunities of digitalization and invest early in the right tools will be better equipped to navigate the challenges ahead.
