Five priorities for the Chief Procurement Officer in 2025
In an ever-evolving landscape, procurement teams will need to navigate all kinds of challenges and opportunities to remain successful in 2025. A new report from ArcBlue sheds light on priorities that should be at the forefront of any Chief Procurement Officer’s agenda.
1) Rethinking supply chains amid geopolitical tensions
There is a growing trend of organisations re-evaluating their supply chains in response to shifting geopolitical dynamics, particularly post-US election. That is because supply chain resilience has become a critical priority for companies, especially in light of the global disruptions seen in the past years (China, Covid-19, and so on).
Chris Hampden, Director for Southeast Asia at ArcBlue, noted that Donald Trump’s return to the US presidency is expected to bring significant trade shifts, including a tariffs-heavy approach towards negotiations with major trade partners.
“Trump has already begun this with threats of significant tariffs aimed at China, Canada, Mexico, and the EU. Introducing tariffs has the potential to reshape global trade dynamics.”
“Businesses should act now to diversify supply chains, exploring ‘China-plus-one’ strategies in Southeast Asia to mitigate disruptions and future-proof operations before tariffs take effect. There’s plenty of opportunity for procurement teams to step up and help their companies navigate the cost and resilience challenges of these shifting dynamics.”
With growing interest in reducing reliance on China for manufacturing, businesses are focusing on strategies such as creating digital twins for supply chain modelling, diversifying sourcing locations and enhancing flexibility to adapt to global disruptions like pandemics and natural disasters.
2) Harnessing emerging technology
Emerging technology is radically transforming procurement. New technology is enabling procurement to drive operational efficiency (automation and digitisation), enhance demand forecasting, and assess supplier risk, among others.
The development of artificial intelligence will be a gamechanger for procurement. AI enables data analytics to go deeper and quicker through the analysis phase and to create a more transparent view of spending behaviours. And AI-powered platforms are equipping businesses to predict disruptions before they occur, empowering more informed and proactive decision-making.
“To stay competitive, companies must embrace AI’s rapid transformation or risk falling out of step with the industry,” said Barry Ward, Head of Analytics at ArcBlue.
In addition to AI, data analytics provides actionable insights into demand trends and inventory management, improving efficiency across the value chain. This transformation extends to intelligent contract negotiation.
“Companies must embrace these tech-driven innovations to stay ahead in the rapidly evolving procurement landscape,” Ward said.
3) Tackle inflationary pressures with bold action
Rising costs and economic pressures will demand smarter strategies from procurement leaders in 2025. With prices up across the board, margins are eroding.
These price pressures have significant flow-on effects across supply chains, and according to ArcBlue’s report, quick fixes are just part of the solution. Businesses must embrace strategic supplier partnerships and focus on value creation, leverage technology and prioritise sustainability to build resilience, drive savings and secure long-term success.
Chris Gardner, Director of the Savings Practice at ArcBlue, said: “As businesses continue to face economic pressures in 2025, managing cost remains a top priority for procurement and supply chain leaders. In the wake of inflationary pressures, global disruptions and volatile supply chains, organisations are under increasing pressure to tackle rising costs effectively.”
“Companies must move beyond quick fixes and adopt more strategic, sustainable approaches to cost management. Embed cost management within ways of working, leverage technology for cost optimisation, and nurture sustainability initiatives that also unlock long-term savings – all while not compromising on quality.”
4) Build procurement transparency
As businesses face growing pressure to be accountable for their ethical practices and integrity, consumer trust and transparent processes are emerging as critical priorities for procurement.
With increasing scrutiny from stakeholders, consumers, regulators and investors, procurement teams must operate with greater accountability and visibility. Younger generations in particular are prioritising the ethical and sustainable impact of an organisation, including in their personal purchasing decisions. This shift is increasingly influencing supplier selection, making ethical and sustainable practices a prerequisite in the procurement process.
“A focus on good governance and ethics is becoming increasingly important for procurement,” highlighted Elisabeth Lette, ArcBlue’s Director for Queensland & Northern Territory. “Demonstrating ethical and transparent procurement practices can enhance a company’s appeal to socially conscious investors, positively affecting stock performance and customer loyalty.”
“Moreover, organisations that prioritise transparency around their ethical sourcing practices can experience significant benefits, not just in reputation enhancement, but also in investor relations and revenue generation.”
Dan Fielding, Managing Director at ArcBlue, added: “Procurement is pivotal in driving efficiency and fostering resilient, ethical supply practices that meet the demands of a rapidly evolving global environment.”
5) Build influence through storytelling
The ability to communicate effectively and influence is becoming one of the most critical skills for procurement professionals, said ArcBlue’s report.
Fiona Nissen, Director for New Zealand at the firm (which is part of strategy giant Bain & Company), explained: “We’re observing a change of style when it comes to communicating and influencing in the last years. Procurement teams are developing skills in communicating with and influencing stakeholders through enhanced storytelling.”
Leveraging storytelling, procurement teams can make complex ideas easier to grasp, evoke emotions and resonate on a deeper level. This in turn helps them better articulate their objectives and strategies to suppliers and executives, fostering collaboration and mutual understanding. It also helps them gain influence in the ‘business’ and the C-suite.
The shift toward storytelling goes beyond simple communication. “It’s about tailoring narratives to resonate with different individuals and functions, positioning strategies visually and emotionally, and taking ‘hearts and minds’ on a journey. By using varied communication levers – such as data visualisation, relatable anecdotes and emotional framing – procurement professionals can enable alignment, foster trust and secure resources for long-term success.”
