Procurement is constantly evolving, influenced by technological advancements, policy shifts and global economic changes. In 2025, companies will focus on technology, flexibility and sustainability to enhance supply chains. Here are the top seven trends that have shaped and will continue to have an impact this year.

1. Stakeholder Experiance.

A fundamental shift is occurring in how procurement teams operate. More procurement professionals are embedding themselves within business units, allowing them to better understand stakeholder needs and provide tailored support.

We are now witnessing the emergence of procurement orchestration teams that emphasise process design and stakeholder experience as key performance indicators (KPIs). Companies like Unilever, Coca-Cola, and Lego are recognised for their strong stakeholder engagement, fostering positive experiences for employees, customers and communities.

As procurement evolves from a cost-savings function to a strategic driver of business value, companies will increasingly prioritise collaboration and long-term impact over traditional savings metrics.

2. Multinational companies cross-border investment.

With rising U.S tariffs and China’s volume-based procurement policies, companies are proactively restructuring their supply chains. Rather than merely bracing for disruptions, businesses are relocating production, forming strategic partnerships, and exploring new markets.

China’s ambitious 2025 “Made in China” action plan exemplifies this shift. Designed to stimulate foreign investment in high-tech sectors, the initiative is backed by a 1 trillion yuan venture fund. Premier Li Qiang is spearheading efforts in research and development to achieve a more technological self-reliance while fostering a more investor-friendly economy.

Companies that successfully adapt to these evolving trade dynamics will gain a competitive advantage by leveraging new production locations, innovative partnerships, and diversified supply chains.

3. The AI Revolution.

AI is transforming procurement by leveraging vast datasets to generate insights, automate processes and enhance decision-making. Rapid advancements in AI are set to revolutionise procurement, category management, strategic sourcing and contract lifecycle management.

AI analytics is set to help procurement teams anticipate market trends and optimise sourcing. For example, Amazon use AI-powered forecasting to analyse historical data and external factors, predicting spikes, such as increased iPhone sales during the holiday season, and adjusting inventory accordingly.

Companies that effectively integrate AI will gain a competitive edge through improved supply chain forecasting, cost savings and resilient supply chain management.

4. Flexibility in Contracting Agreements.

Market volatility in 2025 is prompting companies to adopt more flexible contracting strategies. Businesses increasingly favour shorter contracts with lower financial commitments or adaptable arrangements that allow them to pivot quickly in response to economic shifts or supplier disruptions.

One effective approach is using framework agreements with logistic providers. These agreements establish standard terms in advance, enabling businesses to issue service orders without renegotiating contracts each time. This strategy saves time and resources while allowing modifications if needed.

By incorporating flexible contracting strategies, businesses can better manage risks such as geopolitical instability, fluctuating demand, and supply chain disruptions.

5. Environmental  Social Governance.

Consumers are increasingly holding companies accountable for ethical sourcing and fair labor practices. As a result, procurement teams must work closely with suppliers to develop sustainable solutions that minimise environmental impact.

Patagonia exemplifies ethical supply chain management, maintaining strict labor, environmental and transparency standards. It’s a code of conduct, aligned with the International Labor Organisation principles, that applies across all suppliers. Regular audits ensure compliance, integrating sustainability into procurement strategies.

Aligning procurement with ESG values not only supports corporate responsibility but also enhances brand reputation and customer loyalty.

6. Intake and orchestration technologies.

Procurement technology is advancing rapidly with intake and orchestration (I&O) tools gaining traction. Intake tools streamline data capture, while orchestration tools enhance workflow automation across platforms. These solutions challenge traditional enterprise software by offering greater flexibility, faster implementation and improved user experience.

Companies like Zip lead the way by unifying procurement tasks into a seamless platform. AI-powered orchestration connects various applications, simplifying complex processes such as contracting. By integrating AI, orchestration tools improve risk analysis, automate approvals, and manage contract renewals more effectively.

The future of procurement will be increasingly reliant on I&O technologies. As AI and orchestration tools work symbiotically, procurement teams will gain greater agility and risk mitigation capabilities.

7. Filling in labour shortages.

The healthcare sector faces significant challenges due to the staffing shortages, rising costs and limited government funding. To bridge these gaps, providers are leveraging digital efficiencies and adapting new technologies to maintain service quality.

How companies are using innovation to fill labor shortages:
• AI and analytics technology, telemedicine platforms,geonomics, smart health devices, robotics, and other software are helping to deliver better care.
• Digital technologies will automate some work, dispense with and augment human effort.
• AI diagnostic tools are already being used for cancer, neurology and cardiology.
• AI can help because it has vast amounts of unstructured health data to help create more accurate and faster diagnostics.
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With this shift to using more technology in healthcare and the human workforce now working alongside virtual assistants, the human and more personal aspect of healthcare will become more critical. With the emergence of AI, robotics, and other new technologies, healthcare providers.

Conclusion.

The procurement landscape in 2025 is shaped by rapid technological advancements, evolving geopolitical factors and growing sustainability demands. Companies that embrace AI, flexible contracting, and ESG priorities will position themselves for success. Meanwhile, the rise of orchestration and innovation in supply chain strategies will further enhance efficiency and resilience. As organisations adapt, procurement will evolve from cost-focused into a strategic enabler for business growth and long-term value.