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      Numerous forces are converging to deeply influence the future trajectory of procurement. Faced with uncertainty over their pace and impact, procurement teams should brace themselves for a myriad of potential scenarios.

      In this report we examine how these forces may affect procurement teams and discuss how procurement leaders can respond—and the capabilities they will need to thrive. Our insights are augmented by findings from the KPMG 2023 Global Procurement Survey of 400 senior procurement professionals from a range of industries.

      Procurement leaders have a real opportunity to recast their functions as strategic influencers, enabled by generative AI and automation, to drive high-performing, sustainable purchasing activity.

      future-of-procurement.pdf

      Future of procurement

      Know how to calibrate the right blend of strategic decision-making and automated support processes
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      77% of procurement executives say risk of supply disruption is a critical external challenge.

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

      66% of procurement executives say increased regulatory and ESG demands are heavily influencing strategic sourcing in the next 3–5 years.

      Five strategic imperatives to address signals and seize emerging opportunities

      through redundancy and regular risk assessments, increasing reshoring/nearshoring, and reducing sole sourcing, with enhanced supply chain transparency and flexible supplier relationships.

      dramatically speeding up data processing and analysis, generating insights that drive innovation and enhance productivity and decision-making.

      building a roadmap to guide investment in a transparent, sustainable supply chain and comply with ESG regulations.

      to optimise costs, service levels, and working capital, and rethink category strategies, enforcing vendor contracts and reviewing contract pricing formulas.

      by offering strategic roles with accelerated advancement opportunities, investing in in supplier relationship management and TPRM skills, and automating category management.

      Procurement executives say developing ESG capabilities is their number one priority in the next 3–5 years.

      Implementing data analytics is the single most important activity over the next 12–18 months.

      41% of procurement executives rate their organisation’s category management as “highly mature".

      How KPMG can help

      KPMG procurement professionals can develop strategies for procurement, design operating models and enable technology to drive value over time. KPMG firms take a multidimensional approach that anticipates continuous change in technology, market conditions, and organisational priorities – to help you along each step of this transformational journey.

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      Rakesh Agarwal
      Rakesh Agarwal

      Partner, Head of Technology Consulting, Advisory

      KPMG in Singapore

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      KPMG combines our multi-disciplinary approach with deep, practical industry knowledge to help clients meet challenges and respond to opportunities. Connect with our team to start the conversation.

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      Connect with us

      KPMG combines our multi-disciplinary approach with deep, practical industry knowledge to help clients meet challenges and respond to opportunities. Connect with our team to start the conversation.

      Contact us