Fueled by a combination of geopolitical tension, economic instability, and significant supply chain shifts, procurement has taken on increasing importance.
Economist Impact report, sponsored by SAP, underscores procurement’s growing influence in advancing AI adoption and sustainability performance. However, the field still faces obstacles in assuming this larger role.
“Businesses today face a convergence of crises—a ‘polycrisis’—which includes environmental shocks, shipping delays, and growing regulatory restrictions. Tariffs are the latest disruption, prompting businesses across sectors to seek quick solutions to avoid price hikes,” according to SAP. “Weathering this storm requires procurement leaders to take on higher risk as they navigate this uncertainty.”
Key takeaways:
· Geopolitical risk has emerged as the top concern for procurement leaders, with 64% listing it as their top focus over the next 12-18 months, up from just 30% in 2024. This surge reflects both the growing complexity of global operations and procurement’s expanding influence.
· 78% of respondents expressed confidence in procurement’s ability to manage external risk—a 37% increase from last year—signaling procurement’s growing value as a strategic partner.
· 89% of respondents said they are confident in their ability to adopt and apply AI to improve efficiency and productivity.
· Over half (53%) of survey respondents named sustainability as their top strategic priority for the next 12-18 months.
