5 trends that are changing purchasing for good

How to make procurement fit for future trends. Geopolitical uncertainties, rapid technological advances and increasing demands on sustainability and ESG are forcing companies to rethink and realign their procurement strategies.

The new KPMG study "Future of Procurement" highlights the five most important trends that will shape procurement in the coming years. KPMG's experts highlight specific recommendations for action and use practical examples to provide insights into the successful organisation of tomorrow's procurement.

Our findings are supplemented by the results of the KPMG 2023 Global Procurement Survey of 400 senior procurement managers from various industries.

• Geopolitical tensions and crises in the supply chain
• Rapid advances in artificial intelligence (AI) and automation
• Clear data basis as the key to better decisions
• Sustainability as a decisive success factor
• The battle for talent: Making procurement more attractive

Geopolitical tensions and crises in the supply chain: Global crises and political tensions such as the war in Ukraine highlight the vulnerability of global supply chains. Companies need to adapt their procurement strategies in order to become more resilient to geopolitical risks and supply chain disruptions. Diversifying procurement markets, strengthening regional supplier networks and increasing transparency in the supply chain are key levers here.

Rapid progress in AI and automation: AI and automation are finding their way into procurement and offer enormous potential for increasing efficiency and optimising costs. From automated order processing and intelligent contract analysis to AI-supported risk assessment of suppliers - new technologies are fundamentally changing the way procurement works.

A clear data basis is the key to better decisions: The increasing availability of data in procurement is opening up new opportunities for data-driven decisions. By using data analysis and business intelligence, companies can optimise their procurement processes, reduce costs, minimise risks and improve their supplier relationships.

Sustainability as a key success factor: ESG (Environmental, Social, Governance) is no longer just a buzzword, but a key success factor for companies. In the procurement sector, sustainable procurement practices, compliance with environmental standards and ensuring fair working conditions in the supply chain are becoming increasingly important.

The battle for talent: The shortage of skilled labour is also hitting procurement hard. In order to attract and retain qualified employees, companies should make roles in these areas more attractive and offer new development opportunities.

77% of purchasing managers state that the risk of supply disruptions is a critical external factor.

12-18 months - Predictive analytics and generative AI are the two key technologies that are likely to have the biggest impact on procurement functions in the next 12-18 months.

66% of procurement managers state that the increased regulatory requirements and ESG-related requirements will have a major impact on strategic procurement in the next 3-5 years.

3-5 years - The development of ESG skills is the most important priority in the next 3-5 years.

12-18 months - The implementation of data analyses is the most important single measure in the next 12-18 months, say purchasing managers according to the survey.

In the KPMG study, the authors derive "strategic imperatives" from the trends in order to be correctly positioned for the future of procurement. Case studies show how implementation can succeed in practice.

Companies that are aware of the trends outlined above and implement strategic imperatives can set up their procurement function for the future and utilise this as a competitive advantage. The experts at KPMG support companies in successfully shaping this challenging transformation.

Download the KPMG study "Future of Procurement" now and find out how you can utilise the opportunities of the future in procurement.