Art of Procurement

During the course of the year, I get the opportunity to talk to a lot of procurement leaders, analysts, advisors, consultants, and provider executives. Today on the Art of Procurement podcast, to kick off 2025, I share five clear trends that have emerged from these conversations related to the future of procurement. Here’s a quick look (you can listen to the podcast for more context!) ⭐ “Doing More with Less” Is Here to Stay McKinsey’s research shows that spend under management by buyers has increased by 50% in the last five years, while team sizes may drop by as much as 25–50%. Procurement’s scope is growing even as resources shrink, so we have to rethink our operating model entirely—merely improving the status quo won’t cut it. ⭐ AI Is Definitely Here to Stay From generative AI to “agentic” AI that autonomously executes tasks, every procurement team is on a journey toward broader AI adoption. According to Mary Purk and the AI at Wharton team, procurement leads in overall adoption yet feels the least positive about AI’s impact—something we must address head-on. If we’re not comfortable defining procurement’s “new value” in an AI-driven world, we risk letting uncertainty hold us back. ⭐ Process-Driven Activities Will Be Automated Rigid sourcing processes can’t be our substitute for deep supply market insights. In 2025, anything primarily driven by process becomes a target for semi or full automation. Our role? Elevate beyond the process to focus on strategic activities and higher-order value creation. ⭐ A Return to Stakeholder-Led Buying As automation grows, stakeholders will acquire what they need through advanced digital platforms, making procurement seem “invisible.” But this isn’t the end of procurement—it’s an evolution. We need to define which purchases can be fully automated and which require human leadership and strategic insight. ⭐ Geopolitical Changes Create Tailwinds for Procurement Trade shifts, regulatory uncertainty, supply disruptions, inflation, and potential new tariffs all create fresh challenges—and opportunities. Procurement and supply chain professionals who can navigate these dynamics will find themselves in the spotlight, delivering critical strategic value to the business. These five trends aren’t just predictions; they’re already reshaping our daily work. The good news? We have the chance to position procurement as a powerful lever for sustained competitive advantage. What do you think? Are you seeing the same trends—and how are you preparing for them in 2025?

Remember to download your free copy of the 2024 AOP Live Yearbook! We’ve combined an entire year’s worth of procurement discussions with real-time audience feedback and poll data to give you a snapshot of the most pressing (and sometimes challenging!) issues faced in 2024. Download your copy now! 📑 https://lnkd.in/g6a6KKhz #artofprocurement #aoplive #aopyearbook

From the rise of agentic AI and process automation to the shift toward ‘invisible procurement,’ the role of procurement is changing right before our eyes. With geopolitical and economic uncertainty waiting for us in 2025, procurement is standing at a critical inflection point that will define their role and value going forward. In keeping with his annual new year tradition, Philip Ideson draws on hundreds of conversations with procurement leaders and experts to paint a picture of procurement’s challenges and opportunities in 2025 and beyond. 🎧 https://lnkd.in/eimhHe3v #artofprocurement #procurement #newyear #2025andbeyond

This week on the Art of Procurement podcast we featured a conversation with my good friend Aaron Addicoat. Aaron and I are both strong believers that small changes can have a big impact on the trajectory of procurement. Here are 5 that I've experienced personally while leading procurement turnarounds: 1️⃣ Form an executive-level governance group that sets procurement goals and aligns them with company priorities 2️⃣ Address process problems with high volume / low impact purchases to increase the perception of procurement 3️⃣ Identify a stakeholder advocate to trial an increased role for procurement in a specific project or category 4️⃣ Provide training to internal team members to help them reimagine the role and impact that procurement can have 5️⃣ Target a small investment in ProcueTech that either 1) improves access to information (e.g. spend analytics) or 2) improves the stakeholder experience (e,.g. intake) Let me know if you have any others to add!

Friday means a new episode of Procurement 6 is now available! In this week’s Procurement 6, Kelly Barner discusses: - The origin of change that affects procurement - Whether this is the year we can go from good to great - What Nostradamus had to say about 2025 - And more! 🎧 https://lnkd.in/gXRPu2sB #artofprocurement #procurement #procurement6 Aaron Addicoat AlixPartners Art of Supply Kris Lance Una

In 2001, Jim Collins published ‘Good to Great,’ the result of a massive research project to understand why some companies out perform the rest, and why companies with equal opportunity to become great don’t. In this episode of the Art of Supply podcast, Kelly Barner re-reads ‘Good to Great’ in light of 2025 business conditions, reviewing key themes from the book and reflecting on what has changed (and what has not) in the 20+ years since the book was published. 🎧 https://lnkd.in/gS8-AdSA #artofsupply #goodtogreat #companyperformance

The goal of The Sourcing Hero podcast is to capture the epic stories of people who are creating exceptional value within procurement. 🎧 https://lnkd.in/eeJV5u3A Kris Lance, Vice President and General Manager at Una, is definitely one of those people. In today’s very first episode of 2025, Kelly Barner takes a look back at three of Kris’s most popular episodes last year, sharing a short clip from each of the three episodes. #procurement #podcast #heroes

When was the last time you felt excited about the changes happening within procurement?  🎧 https://lnkd.in/euRNJ2iy Whether it’s putting an end to something that’s not working or starting a new tactic, change is necessary to achieve business objectives and realize additional ROI. In a session from Mastermind Live 2024 Aaron Addicoat, Director at AlixPartners, shares his thoughts on approaching procurement transformation with the right mindset to accelerate results. #procurement #change #transformation

Mexico closed the 'border-skipping loophole' that leveraged the 'de minimis' provision used by SHEIN and Temu. How will this affect companies and consumers? Read more below... #supplychain #deminimis #Mexico