**London**: The latest Amazon Business report highlights significant challenges faced by procurement professionals, including supply chain disruptions, political instability, and cyber-security threats, as they strive to balance efficiency with resilience in a complex global landscape.
In a climate marked by economic uncertainties and geopolitical instability, procurement professionals are increasingly facing significant challenges in ensuring the efficient sourcing of essential products and services. This shift in focus is detailed in Amazon Business’s 2025 State of Procurement Data report, which identifies supply chain disruptions and delays as the foremost risk, a concern shared by 32 per cent of procurement decision-makers and 33 per cent of senior leaders.
The report underscores the heightened anxiety surrounding political instability, with 27 per cent of procurement decision-makers and 25 per cent of senior leaders highlighting the potential negative impact on supply chains. Factors such as wars, regime changes, and tariffs contribute to this volatility, prompting concerns about the resilience of supply networks. Alarmingly, the report reveals that a fifth of decision-makers, alongside 18 per cent of senior leaders, acknowledge their organisations’ inadequate systems for monitoring and managing these risks.
One senior leader in manufacturing encapsulated the prevailing challenges, stating: “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.”
Inflation remains a pressing issue, despite declining trends in recent months. Approximately 34 per cent of senior leaders list it as a primary concern, with 29 per cent of decision-makers sharing similar worries. This was cited as one of the three top perceived challenges, alongside apprehensions about evolving laws and regulations, acknowledged by 31 per cent of senior leaders and 29 per cent of decision-makers.
Cyber-security threats have emerged as a dominant concern, with 34 per cent of senior leaders identifying it as the most significant issue in the procurement landscape; this sentiment is echoed by 30 per cent of decision-makers. Related to this are worries about data privacy, viewed as a concern by 27 per cent of decision-makers and 26 per cent of senior leaders.
The report indicates a clear shift in procurement priorities, with newer risks now taking precedence over traditional economic uncertainties. Additionally, challenges associated with attracting and retaining talent are perceived by 28 per cent of stakeholders in procurement roles, while integrating new technologies has emerged as a significant issue for 31 per cent of leaders and 33 per cent of decision-makers.
On the ground, many procurement teams cite operational complexities as a major hurdle. Nearly half report that efficiency and the intricate nature of supply chains are their primary concerns, with northern European countries, notably the UK and Germany, reporting the highest instances of such challenges at 49 and 42 per cent respectively. Furthermore, inefficiencies in internal systems are prevalent, particularly in France (64 per cent), Italy (62 per cent), and the UK (60 per cent).
Despite the ongoing economic climate, only 21 per cent of procurement decision-makers and senior leaders report budgetary challenges, a decrease from previous years. Conversely, the importance of fostering robust supplier relationships has grown due to fears surrounding supply chain disruptions. “It’s crucial to build strong relationships with suppliers because when challenges hit, those partnerships determine if you can stay resilient or fall behind,” remarked a technology procurement leader.
However, there are rising concerns about suppliers’ capabilities, with 17 per cent of decision-makers and senior leaders expressing worries that suppliers may hinder the adoption of digital procurement systems. This has increased significantly from the previous year, affecting the ability of organisations to navigate the complexities arising from escalating costs and supply challenges.
Furthermore, communication issues with suppliers are becoming more critical, with 19 per cent of senior leaders and 15 per cent of decision-makers noting a lack of clear communication and support. Visibility into supplier inventory is also a concern, raised by 12 per cent of decision-makers and 10 per cent of senior leaders.
Operating under these conditions compels procurement teams to navigate a myriad of conflicting priorities while meeting ongoing purchasing requirements. Access to a diverse range of sellers or products presents challenges for 29 per cent of decision-makers and senior leaders. Some procurement professionals have turned to outsourcing, with 72 per cent indicating they utilise this strategy to some degree.
Collaboration with key organisational stakeholders remains inadequate; 82 per cent of procurement leaders in Germany report insufficient collaboration, while 83 per cent cite a lack of specialist knowledge. One technology procurement leader emphasised the necessity for procurement to have a more influential role in strategic discussions, suggesting that the focus should extend beyond mere cost savings to encompass comprehensive organisational goals.
Amidst these ongoing discussions and findings, Amazon Business continues to position itself as a potential partner for businesses seeking to mitigate risks and enhance procurement capabilities.
Source: Noah Wire Services
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