Procurement Embraces Innovation Amid Global Challenges, Ivalua and Procurious Report Finds

REDWOOD CITY, Calif., Feb. 4, 2025 /PRNewswire/ -- The latest report from Ivalua, a global leader in spend management, and Procurious, titled "Next Level Procurement: Embracing GenAI and Whatever Comes Next," reveals a transformative shift in the procurement landscape as organizations navigate unprecedented external pressures. The survey of 137 procurement leaders highlights the urgent need for adaptability, strategic focus, and technological integration to thrive in an ever-changing environment.

As global disruptions, geopolitical tensions, and economic uncertainties continue to reshape the industry, procurement teams are increasingly expected to pivot from traditional cost-cutting measures to more strategic roles.

Notably, 61% of respondents anticipate global conflicts to expand and further impact supply chains. More than half (55%) of respondents predict that US tariffs will force a rethink of supplier strategies, and another 50% believe that the outcome of the US election will shift the global regulatory landscape. Also, 81% of procurement leaders consider another "black swan" event to be a likely occurrence, highlighting that uncertainty is now a constant factor.

"Procurement has changed dramatically in the last several years," said Alex Saric, Chief Marketing Officer (CMO) at Ivalua. "It's a constant juggling act these days, dealing with everything from global disruptions to skyrocketing costs to uncertain trade policies. Next-level procurement means empowering teams to quickly and effectively adapt spend and supplier strategies as conditions evolve. Embracing AI and other advanced technologies can be a real game changer."

The Evolving Role of Procurement

While cost reduction remains the top priority for many (51%), procurement's scope of responsibility continues to expand beyond traditional cost-cutting measures into more strategic areas.

Namely, 77% of respondents expect their procurement teams to place a greater emphasis on strategic decision-making and value creation in 2025. Over half (54%) of procurement leaders expect their roles to focus more heavily on sustainability and ethical sourcing. Additionally, 50% of procurement professionals said they expect to spend more time collaborating with suppliers.

Leveraging Technology to Navigate Complexity

Over half of procurement teams (52%) foresee significant automation of tactical tasks through technology, allowing them to concentrate on high-value activities. In particular, 63% say Gen AI will boost efficiency and productivity and 45% of teams are already deploying generative AI to enhance areas such as spend analysis, sourcing, and contract management. Additionally, 46% believe technology will guide their decision-making.

"A growing number of teams are turning to generative AI to automate routine tasks, improve decision-making, and enhance productivity", added Saric. "Rapid advances in agentic AI will supercharge the quality and scope of its business impact in the near future".

However, challenges remain. Inflation (75%), sustainability regulations (63%), and talent shortages (58%) are the most pressing concerns for procurement professionals. In response, 74% of procurement leaders have revamped their strategies demonstrating the need for adaptability in a fast-changing landscape.

For more information on the report and its findings, please visit here.

About Ivalua

Ivalua is a leading provider of cloud-based, AI-powered Spend Management software. Our unified Source-to-Pay platform empowers businesses to effectively manage all categories of spend and all suppliers, increasing profitability, improving sustainability, lowering risk and boosting employee productivity. We are trusted by hundreds of the world's most admired brands and recognized as a leader by Gartner and other analysts. Learn more at www.ivalua.com. Follow us on LinkedIn.

View original content to download multimedia:https://www.prnewswire.com/news-releases/procurement-embraces-innovation-amid-global-challenges-ivalua-and-procurious-report-finds-302367025.html

SOURCE Ivalua