Future of procurement

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 Surveyopens in a new tab (PDF 3.1MB) 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.

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Future of procurement

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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.1

Five strategic imperatives to address signals and seize emerging opportunities

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 organization’s category management as “highly mature".2

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 organizational priorities – to help you along each step of this transformational journey.