Build a resilient global footprint
through redundancy and regular risk assessments, increasing reshoring/nearshoring, and reducing sole sourcing, with enhanced supply chain transparency and flexible supplier relationships.
Future of procurement
Know how to calibrate the right blend of strategic decision-making and automated support processes
Share
Procurement and Outsourcing Advisory Services
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.
77 %
of procurement executives say risk of supply disruption is a critical external challenge.
12-18 months
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
Embed big data and generative AI to accelerate automation
dramatically speeding up data processing and analysis, generating insights that drive innovation and enhance productivity and decision-making.
Reaffirm commitment to sustainability and ESG
building a roadmap to guide investment in a transparent, sustainable supply chain and comply with ESG regulations.
Drive continuous performance improvement, harnessing data and analytics
to optimize costs, service levels, and working capital, and rethink category strategies, enforcing vendor contracts and reviewing contract pricing formulas.
Build, train and retain tomorrow’s workforce
by offering strategic roles with accelerated advancement opportunities, investing in in supplier relationship management and TPRM skills, and automating category management.
3–5 years
Procurement executives say developing ESG capabilities is their number one priority in the next 3–5 years.
12–18 months
Implementing data analytics is the single most important activity over the next 12–18 months.
41%
of procurement executives rate their organization’s category management as “highly mature".*
Dive into our thinking:
Future of procurement
Download PDFFootnotes
* KPMG 2023 Global Procurement Survey: https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2023/kpmg-2023-global-procurement-survey.pdf
Explore more
Insight
KPMG 2023 Global Procurement Survey: A critical year ahead
Procurement leaders face complex risks and opportunities that require a focus on strategic sourcing, technology, and sustainable goals.
Insight
How generative AI will transform procurement as we know it
Generative AI: Game-changing technology for the procurement function that can save time and money, improve efficiency.
Insight
Accelerate supply chain value with a targeted strategy for AI
AI boosts supply chain performance with near-term solutions that expand margin, unlock capacity, and stabilize labor, making businesses more competitive in an unpredictable market.
Subscribe to Real Insights for Operations
Sign up to receive newsletters on KPMG's latest research, analysis, news and events to help operations executives innovate.
Meet our team
Chris McCarney
Principal, Procurement & Outsourcing Advisory Leader, KPMG LLP (U.S.)
Len Prokopets
Advisory Managing Director, Procurement & Outsourcing Advisory, KPMG US
Yatin Anand
Principal, Procurement and Outsourcing Advisory, KPMG LLP (U.S.)
Chris McCarney
Principal, Procurement & Outsourcing Advisory Leader, KPMG LLP (U.S.)
Len Prokopets
Advisory Managing Director, Procurement & Outsourcing Advisory, KPMG US
Yatin Anand
Principal, Procurement and Outsourcing Advisory, KPMG LLP (U.S.)