What challenges will procurement teams face in 2025?

As we step into 2025, procurement teams are gearing up for a year of both opportunity and complexity. From navigating economic uncertainties to embracing new technologies and sustainability demands, the challenges ahead will test procurement professionals’ agility and adaptability.

Here, we’ve explored three key challenges that procurement professionals are likely to face this coming year, and suggested how to overcome them…

1. Navigating economic volatility

The global economic landscape remains unpredictable, with inflationary pressures, fluctuating exchange rates, and ongoing supply chain disruptions. These factors can impact budgets, pricing agreements, and supplier relationships, making cost control more challenging.

How to overcome it:

  • Strengthen supplier relationships: Collaborate closely with suppliers to gain insights into market trends and potential risks. Building trust can lead to better terms and flexibility during turbulent times.
  • Diversify supply chains: Reducing reliance on a single supplier or region minimises vulnerabilities. Explore alternative sources and establish contingency plans to maintain continuity.
  • Use data analytics: Leverage procurement analytics to monitor market trends, identify cost saving opportunities, and forecast potential disruptions.


2. Meeting sustainability demands

Sustainability continues to be a top priority for businesses, but integrating sustainable practices into procurement remains challenging. Balancing eco-friendly initiatives with budget constraints and supplier availability requires a strategic approach.

How to overcome it:

  • Define clear sustainability goals: Establish measurable objectives aligned with your organisation’s ESG commitments.
  • Engage suppliers: Partner with suppliers who share your sustainability values and work collaboratively to innovate greener solutions.
  • Embrace technology: Tools like carbon tracking software and supplier evaluation platforms can help identify sustainable practices and monitor progress.

If you would like more detail on overcoming this specific challenge, we’ve discussed it further here.

3. Adapting to technological advancements

The rapid evolution of technology, including AI, blockchain, and automation, is transforming procurement processes. While these tools offer immense potential, the challenge lies in integrating them effectively and ensuring teams are equipped to use them.

How to overcome it:

  • Invest in training: Equip procurement professionals with the skills needed to use new technologies confidently.
  • Start small: Pilot new tools on specific projects to assess their effectiveness before scaling up.
  • Focus on integration: Choose technologies that integrate seamlessly with existing systems to maximise efficiency and reduce disruptions.

4. Addressing talent shortages

Finding and retaining skilled procurement professionals remains a challenge as the demand for expertise grows. The industry is evolving rapidly, and procurement teams need professionals who can think strategically, manage complex supply chains, and adapt to change.

How to overcome It:

  • Upskill existing teams: Invest in ongoing training to enhance the capabilities of current staff.
  • Promote procurement careers: Showcase the strategic importance of procurement to attract top talent from diverse backgrounds.
  • Foster a collaborative culture: Create an environment where innovation and knowledge sharing thrive, making your organisation an attractive place to work.

As anyone within the procurement sector knows, this is nothing new: talent acquisition has long been a challenge within the procurement sector. Luckily, procurement consultancies such as Accelerate can help your organisation with talent management. Accelerate offers a range of services from leadership and professional competencies via our procurement academy platform, to training, coaching and development workshops to support your organisation’s talent management program. We can also help with recruitment, as well as bridging any gaps by providing resource for an interim role until the vacant position is filled.

Looking ahead: procurement in 2025

While the challenges of 2025 are significant, they also present opportunities for procurement teams to demonstrate their value as strategic drivers of business success. By staying proactive, embracing innovation, and fostering collaboration, procurement professionals can turn these challenges into competitive advantages, paving the way for a resilient and forward thinking future.

If you’re ready to take your business to the next level, get in touch with Accelerate today for a friendly chat.