Supply chain management in 2025 is undergoing a significant shift, with sourcing and procurement and logistics and inventory management emerging as the foremost priorities for organisations. Recent research conducted by a leading global benchmarking and research firm underscores this change, highlighting a growing emphasis on strengthening supplier relationships, digital transformation, and supply chain visibility as key pillars for building resilience in an increasingly uncertain environment.
Central to the evolving supply chain landscape is the renewed focus on sourcing and procurement. Half of the surveyed organisations are now prioritising supplier relationship management (SRM), a striking increase from 32% just the previous year. The nature of SRM itself is transforming, moving beyond mere compliance to fostering closer collaboration aimed at innovation, agility, and improved risk management. Supply chain professionals identify enhancing relationships with strategic suppliers as their primary strategy for success in 2025. This shift reflects a broader move towards risk mitigation by developing deeper partnerships rather than transactional interactions.
Complementing this relational focus is the drive towards digitising and automating procurement processes. Nearly half of organisations are engaged in standardising workflows, with over a third adopting new technologies to streamline sourcing activities and reduce operational costs. This approach not only improves efficiency but also supports broader digital transformation efforts within supply chains, facilitating quicker decision-making and greater responsiveness.
Logistics and inventory management claim the second-highest priority, with organisations increasingly aiming for enhanced supply chain visibility—from raw materials to final delivery. This end-to-end transparency is critical for managing complexities and responding effectively to disruptions. Statistics reveal 62% of companies prioritise inventory optimisation, with sizeable percentages also focusing on process standardisation and transportation cost reduction. These measures collectively enhance resilience and risk management, crucial in a context where global supply chains have grown more fragile and complex.
Nevertheless, despite advances, comprehensive visibility remains a challenge. While around 60% of firms report having clear insight into their direct suppliers, only 30% claim visibility further down the supply chain. This gap underscores ongoing vulnerabilities and the pressing need for better tools and strategies to monitor extended supplier networks in real time.
Leading procurement executives are similarly prioritising strategic improvements for 2025. They plan to harness data analytics and artificial intelligence (AI) tools to gain spend visibility, adopt the Internet of Things (IoT) for real-time tracking of assets, and embrace cloud-based procurement platforms to increase agility and scalability. There is also a pronounced focus on sustainable procurement, integrating environmental, social, and governance (ESG) factors into decision-making processes as companies respond to regulatory pressures and societal expectations.
Broader technological trends will shape supply chains further. The adoption of cloud-based solutions is expected to surpass 60% across operations, enabling faster and more flexible responses to market fluctuations. Robotics, big data analytics, and cybersecurity enhancements will augment efficiency and protect critical information flows. Digitalisation through IoT devices and blockchain technologies is making supply chains smarter, allowing near-instantaneous visibility and the ability to address issues proactively.
The geographical composition of supply chains is also shifting, with companies favouring regional sourcing to mitigate risks posed by global disruptions. At the same time, advances like 3D printing and smart factories are transforming manufacturing approaches, fostering greater localisation and customisation in production.
In sum, 2025 will see supply chain leaders adopt a more integrated and technology-driven approach to managing sourcing, procurement, and logistics. Standardising processes remains a foundational step to unlocking the full potential of digitisation and automation. Yet, beyond technology, the human element—strengthening supplier collaboration, prioritising sustainability, and enhancing risk management—will remain paramount to building resilient and adaptive supply chains capable of weathering future uncertainties.
Source: Noah Wire Services
