**London**: Amazon Business’s report highlights that procurement professionals are struggling with supply chain disruptions, inflation, and cyber-security threats, as economic uncertainties escalate. With growing concerns about supplier relationships and talent retention, the need for strategic adjustments becomes paramount in the sector.
In a landscape marked by economic uncertainty and geopolitical tensions, procurement professionals are facing escalating challenges that significantly impact their operations. This insight emerges from Amazon Business’s 2025 State of Procurement Data report, which reveals that supply chain disruptions are perceived as the most substantial risk by 32 per cent of procurement decision-makers, along with 33 per cent of senior leaders, who list this as their foremost concern.
The report highlights that political instability is also a pressing issue, affecting 27 per cent of procurement decision-makers. Concerns about regime changes, warfare, and the potential introduction of tariffs further complicate the stability of supply chains. Alarmingly, a portion of the procurement workforce – 21 per cent of decision-makers and 18 per cent of senior leaders – acknowledge their inability to efficiently monitor and manage these various risks.
Reflecting on the complex challenges within procurement, a senior leader in manufacturing remarked, “The biggest procurement challenge today is balancing efficiency with the complexity of global supply chains, where managing both resilience and cost are increasingly hard to reconcile.”
Amid these concerns, inflation remains an ongoing issue, with 34 per cent of senior leaders and 29 per cent of decision-makers reporting it as one of their top worries. The potential for new laws and regulations is also a looming threat for many, with 31 per cent of senior leaders and 29 per cent of decision-makers expressing unease.
In addition to macroeconomic factors, procurement teams are increasingly focused on cyber-security threats. The report indicates that 34 per cent of senior leaders and 30 per cent of decision-makers regard this as their top concern, overshadowing many traditional business risks. This prioritisation suggests a notable shift towards addressing modern technological challenges such as data privacy, which is regarded as a significant issue by 27 per cent of decision-makers and 26 per cent of senior leaders.
Procurement professionals are also grappling with domestic challenges, particularly the difficulty in attracting and retaining talent, highlighted by 28 per cent of those surveyed. Compounding this issue, 31 per cent of senior leaders and 33 per cent of decision-makers express concerns about the integration of new technologies into their processes. The proliferation of artificial intelligence and advanced technologies appears daunting, as noted by 29 per cent of decision-makers and 31 per cent of senior leaders.
Operational efficiencies are further under scrutiny, with nearly half of procurement leaders citing efficiency and complexity as their primary challenge. The geographical variance shows Spain reporting 42 per cent, in stark contrast to Germany and the UK where figures rise to 49 per cent. Inefficiencies in internal systems and processes contribute significantly, with 64 per cent of French leaders and 60 per cent of leaders in the UK reporting barriers to effective operations.
While costs and budget constraints are inherent challenges in such an economic climate, the emphasis on these factors has slightly waned, with only 21 per cent of both senior leaders and decision-makers categorising them as pressing concerns.
As supply chain disruptions loom large, the importance of nurturing robust supplier relationships has become apparent. A technology procurement leader highlighted that, “It’s crucial to build strong relationships with suppliers because when challenges hit, those partnerships determine if you can stay resilient or fall behind.” Recent figures indicate that 20 per cent of senior leaders and 19 per cent of decision-makers are increasingly concerned about these relationships, reflecting a slight increase from the previous year.
However, there are growing apprehensions regarding suppliers’ capacity to adeptly navigate these challenges. About 17 per cent of decision-makers and senior leaders worry about suppliers’ failure to support digital procurement processes. This concern has surged by 11 and 10 per cent respectively in the past year.
Moreover, communication gaps between organisations and suppliers present further challenges, as demonstrated by 19 per cent of senior leaders and 15 per cent of decision-makers who identify this issue, alongside concerns regarding supplier visibility and reliable delivery.
As procurement teams navigate these conflicting issues while fulfilling ongoing purchasing demands, the complexities of accessing a diverse range of sellers and compliance with spending policies present additional hurdles for 29 per cent of both decision-makers and senior leaders. Some are resorting to outsourcing, with 72 per cent of respondents integrating this approach to manage their responsibilities effectively.
The report concludes with an emphasis on the necessity for procurement to play a more significant role within organisations. A technology procurement leader expressed, “There’s a real need to ensure procurement has a stronger seat at the table, especially as priorities shift from just cost-saving to supporting larger strategic goals.”
Source: Noah Wire Services
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