Emerging disruptions, accelerating technologies, and evolving stakeholder demands are reshaping the procurement landscape. The Hackett Group’s 2025 Procurement Agenda and Key Issues Study, unveils cutting-edge insights into how procurement leaders at global enterprises are preparing for the future.
If you’re a Procurement Director, Supply Chain Manager, or Procurement Leader looking to position your organization for sustainable growth and innovation, this deep-dive into procurement’s strategic direction highlights key trends, priorities, and how to align your operations for success in 2025.
Whether you’re looking to integrate AI, strengthen your supply chain, or increase supplier collaboration, The Hackett Group’s latest report will keep you informed and prepared for what’s ahead! Download The Hackett Group’s 2025 Procurement Agenda and Key Issues Study.
Key Takeaways
- Digital procurement, powered by new technologies like Generative AI, is transforming processes, enabling automation, real-time data visibility, and enhanced decision-making for procurement leaders.
- Sustainability is no longer optional; procurement leaders are aligning purchases with ESG goals, focusing on supplier diversity and lowering environmental impact.
- Strategic procurement models are shifting toward centralized operations and specialized teams, increasing collaboration and unlocking measurable value through technology investment and upskilled teams.
Procurement Trends for 2025: Procurement is Pivotal
As we continue on with 2025, the procurement function remains at a pivotal point. New technologies, economic pressures, and evolving global dynamics are revolutionizing how organizations manage their supply chains and purchasing strategies. What’s more–these challenges demand proactive and well-informed responses from procurement professionals, supply chain managers, and C-level executives.
Drawing from The Hackett Group’s Report, we’re uncovering the most pressing priorities and transformative trends shaping the procurement agenda in 2025. From accelerating AI adoption to managing geopolitical disruptions, here’s what you need to know—and how you can prepare. The report highlights several important trends that are changing the way businesses work. Digital Procurement Transformations, backed by Generative AI (Gen AI) and deep real-time data visibility, is having a big impact.
Organizations that want to stay ahead are embracing technology to greatly increase their productivity and maintain a competitive advantage. By focusing on these advancements, companies can improve their efficiency and stand out in the market.
Image Source: The Hackett Group’s 2025 Procurement Agenda and Key Issues Study
Top Trends that Procurement Leaders are Prioritizing for 2025
1. Digital Procurement and Automation: Digital transformation remains at the top as organizations aim to optimize operations and reduce costs. Automation tools, e-procurement platforms, and advanced analytics continue to be integral to achieving procurement goals.
2. Generative AI & Intelligent Automation: It’s no surprise that AI and Gen AI are here to stay–accelerating the pace of change in procurement by automating and augmenting processes like intake management, purchase order processing, and category management.
3. Changing Procurement Skills: With technologies evolving rapidly, procurement professionals need to adapt. Upskilling teams to interpret analytics, communicate insights, and manage advanced technologies are critical steps in ensuring procurement teams stay agile.
4. Expanded Data Visibility: Real-time dashboards and advanced analytics are providing deeper supply chain insights for better decision-making. Organizations equipped with real-time monitoring can respond swiftly to risks and improve supplier collaboration.
5. Procurement Responsibility:: With new regional and global carbon emissions standards taking effect, embedding sustainability into procurement processes has become a mandate rather than a choice. Procurement leaders are focusing on reducing environmental impact, improving supplier diversity, and aligning with ESG objectives.
Take advantage of Ivalua’s Environmental Impact Center to accelerate progress towards sustainability goals and ensure reliable and transparent data to support reporting.
Image Source: The Hackett Group’s 2025 Procurement Agenda and Key Issues Study
Generative AI’s Role in Procurement Transformation
We know that Generative AI (Gen AI) is proving to be much more than another buzzword, with game-changing promise for enterprise procurement. Initial adoption, according to the Hackett Report, has focused on the following use cases:
- Purchase Order Processing
- Spend Analytics
- Category and Contract Management
Even in its early–yet rapidly evolving stage, organizations are keen to invest in Gen AI to drive productivity and efficiency. Yet, there is apprehension as concerns like data privacy, regulatory compliance, and IP leakage. To combat these concerns, procurement teams need to highlight the importance of forward-looking governance as they roll out customized AI applications.
Image Source: The Hackett Group’s 2025 Procurement Agenda and Key Issues Study
Procurement Performance in 2025
Procurement teams anticipate workloads to increase by 9.8%, while staffing and operating budget growth is constrained. Here’s the way the numbers add up:
- Operating budgets will increase moderately.
- Technology spending will increase 5.6%, underscoring the central role intelligent automation and technology enablement play in filling productivity gaps.
- With capital being constrained, technology spending coupled with best-in-class procurement models present strong opportunities to generate more value.
Strategic Procurement Models for 2025
Today’s procurement leaders must continue to align operating models with shifting priorities. The study says that centralized procurement operations remain the expected standard, with 71% of procurement FTEs to be run under shared governance structures (a 2% increase from the current state).
However, centralized procurement structures are expected to increase in responsibility and scope, with organizations citing plans to increase utilization of specialist supplier management teams, deploy centers of excellence (COEs) and digital enablement teams, and develop a dedicated buying-desk for low-value purchases.
By working together, automating routine tasks, and centralizing insight, these new models seek to simplify complexities, improve productivity, and extend procurement’s impact to the organization.
Image Source: The Hackett Group’s 2025 Procurement Agenda and Key Issues Study
Actionable Recommendations for Procurement Leaders
We’ve learned that The Hackett Group’s research offers essential learnings to procurement managers and directors:
- Digital Solutions for Increased Efficiency: Invest in sourcing, spend analytics, and contract lifecycle management solutions as highest priorities to reduce process complexity and enhance decision-making.
- Leverage Data and Analytics: Develop robust data-driven capabilities, including predictive and prescriptive analytics, to uncover opportunities and effectively address risks.
- Upskill and Define Roles: Arm your workforce with the competencies needed to unlock value from innovative technologies such as Gen AI. Plug gaps in skills through formal training and selective hiring.
- Prioritize Sustainability: Success over the long term will depend on synchronizing procurement activities with ESG initiatives. Collaborate with suppliers to integrate sustainability naturally into procurement processes.
- Leverage Partnership and Collaboration: Build more beneficial and strategic relationships with key suppliers to ignite co-innovation, reduce disruption, and secure agreement on strategic priorities.
Looking Ahead
The 2025 procurement agenda is based on addressing economic issues, adopting new technologies, and creating measurable results. With huge hopes for digital transformation, procurement teams need to continue looking ahead, agile, and creative in order to address tomorrow’s challenges.
To own the future of procurement and implement these changes at your organization, leaders must rely on technology-enabled solutions. Want to learn how you can integrate Gen AI and advanced analytics into your procurement strategy? Make the first step—learn about Ivalua’s solutions for smarter, data-driven procurement strategy.
Further Reading
Whitepapers:
- Powering Procurement Transformation with Autonomous AI Agents
- Generative AI in Procurement A Practical Guide to Building Your Roadmap
Blogs:
- Improving Procurement Efficiency with Advanced Contract Management Tools
- Sustainable Procurement: Sourcing Strategies for a Greener Future
- Embracing GenAI and Building Resilience for the Future
- Accelerating Adoption of Generative AI in Procurement
- Transforming Procurement with Generative AI: A Practical Approach
