Despite the rapid advancements in technology, the 2025 Deloitte Global Chief Procurement Officer Survey underscores the indispensable role of human talent in unlocking the full potential of digital transformation in procurement. The survey reveals a robust correlation between a balanced combination of technology adoption and talent competencies and superior enterprise performance, affirming that humans must remain “in the loop” to leverage technology investments effectively.
At the centre of this transformation is the revolution brought about by Generative AI (GenAI). Powerful large language models (LLMs) and advanced chatbots are reshaping procurement by offering capabilities like built-in memory, reasoning, and the ability to operate tools such as web searches. These innovations promise to augment procurement teams’ abilities dramatically, moving beyond automation to enable more intelligent, agentic workflows.
Digital literacy stands out as a critical competency—not only for individual procurement professionals but also collectively across functions. The survey emphasises the need to develop and apply skills for core procurement processes, understand how technology can automate and augment traditional tasks, and identify optimal ways of integrating human talent with digital skills. Keeping pace with technological developments through continuous learning is essential to maintain agility and maximise value creation.
Investment in talent and digital tools has shown clear returns. Organisations that “bet big” on these areas significantly outperform their peers across a range of procurement metrics, including cost savings, cost avoidance, internal stakeholder satisfaction, supplier performance, and innovation enablement. These findings highlight digital transformation as a vital lever for competitive advantage in procurement.
However, successful digital transformation extends beyond technology implementation. An evolving perspective stresses a human-centered approach, recognising that over 70% of digital initiatives fail due to insufficient focus on change management and workforce development. Experts caution that empowering procurement teams via reskilling and upskilling, fostering cultures of adaptability and innovation, and strong leadership commitment are crucial to ensuring that technology investments deliver tangible value. Metrics such as employee adoption rates and engagement scores can help monitor the effectiveness of such efforts.
Meanwhile, procurement executives are also navigating an increasingly complex environment marked by cost pressures, geopolitical uncertainties, and rising protectionism. These challenges demand more resilient and flexible supply chains. Effective risk mitigation strategies include diversifying supply sources, enhancing visibility across supply chains, and fostering supplier information sharing and collaboration, as highlighted by the survey and industry analysts.
The survey further reveals that leading Chief Procurement Officers (CPOs) are embracing this complexity by adopting creative operating models, enhancing talent management, and accelerating digitization efforts. High-performing CPOs—referred to as “Orchestrators of Value”—hold a significant 25% performance edge over their peers through focused strategies on operating model design, talent development, and digital maturity. These leaders also shift procurement from predominantly tactical roles towards more strategic functions such as business engagement and supplier collaboration.
A critical dimension gaining prominence is the Environmental, Social, and Governance (ESG) agenda. The Deloitte survey notes ESG has surged to the second-highest priority for procurement executives, right behind operational efficiency. With 72% of respondents citing enhanced ESG and Corporate Social Responsibility (CSR) initiatives as top priorities, procurement functions increasingly drive the sustainability agenda. Collaboration with suppliers on ESG efforts is widespread, with key areas of focus including waste reduction, material circularity, and climate change mitigation. Yet, measuring and quantifying sustainability factors remains nascent, with just 40% of organisations having defined relevant ESG metrics.
While technology and digital tools such as advanced analytics and robotic process automation (RPA) are crucial enablers, procurement still faces internal challenges, notably in attracting and retaining digital-ready talent. More than 70% of CPOs grapple with this issue, pointing to a pressing need for strategic talent acquisition and retention initiatives to sustain digital transformation momentum.
Looking ahead, trends such as the rise of increasingly autonomous AI, geopolitical shifts towards protectionism, and growing regulatory complexity are reshaping procurement roles. Experts advise CPOs to enhance data maturity and collaborate closely with data and analytics leaders to ensure procurement data is AI-ready. Closing critical skills gaps and developing new talent competencies will be pivotal for success in this evolving landscape.
In sum, the 2025 Deloitte Global Chief Procurement Officer Survey presents a compelling case for a human-centred digital transformation in procurement—one where advanced technology and empowered talent combine to deliver enhanced performance, innovation, and resilience in a dynamic global environment.
Source: Noah Wire Services
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