In a rapidly evolving global landscape, procurement is no longer simply concerned with cost savings and efficiency. Now, building resilient partnerships and maintaining shared values that can support long-term business goals are paramount.
Amy Worth is Director of Amazon Business UK and Public Sector Customers EU.
What are the top challenges procurement leaders face when working with suppliers in 2025?
Procurement leaders today are navigating a complex environment shaped by digital transformation, supply chain volatility, and rising expectations around sustainability and transparency. One of the most pressing challenges is the digital mismatch between buyers and suppliers – while some organisations are embracing advanced technologies like AI and automation, others are still digitising their basic processes. This can create some friction, with 33% of UK procurement leaders cite suppliers’ inability to support digital procurement as a top challenge.
Another hurdle for procurement leaders to overcome is scalability. Over half (51%) of procurement leaders have encountered suppliers who couldn’t grow with their business. Despite the importance of data, many still struggle to access critical supplier information, such as ESG credentials, business continuity plans, and shipping route details. These gaps can hinder informed decision-making and risk management, at a time where businesses must transform at pace to maintain their competitiveness.
How important are sustainability and diversity in supplier selection for modern businesses?
Sustainability and diversity are no longer optional—they’re essential. Some organisations are grappling with internal resistance to change, which can mean that suppliers are repeatedly used due to risk aversion. In fact, according to Amazon Business’ research, 83% of procurement leaders say that difficulty sourcing sustainable suppliers prevents them from achieving their ESG goals.
There is a broader shift underway however when it comes to business priorities, as environmental and social impact are increasingly seen as central to procurement strategy. Moreover, 78% of organisations have mandates or ambitions to purchase from certified sellers, including sustainable, local, or small businesses. Responsible sourcing is not only about meeting regulatory requirements, but also about building brand trust and long-term resilience.
The last few years have shown how fragile global supply chains can be. Events like the COVID-19 pandemic, the Suez Canal blockage, and the global chip shortage have exposed vulnerabilities and forced businesses to rethink their supplier bases. To mitigate risk and ensure business continuity, procurement leaders are adopting more strategic approaches. One route is to diversify suppliers, with nearly two-thirds (66%) of procurement leaders developing a broader supplier base as a top priority.Digital transformation is reshaping procurement. Nearly all (95%) of UK procurement leaders are actively seeking new supplier relationships, often with partners who can support their digital ambitions. Procurement is no longer just about transactions; it’s about building strategic partnerships that align with long-term goals and can adapt to change.
Scalability is crucial to success in the modern world of procurement, as businesses seek suppliers who can grow with them. This is especially important given that over half (51%) have worked with suppliers unable to meet increasing demands. Access to detailed supplier data is another critical component of risk mitigation, however it can be hard to obtain. Supplier data such as business continuity plans (52%), shipping route origins (58%), and ESG practices (57%), helps to better assess and manage potential risks. Through access to data, procurement teams can forge stronger aligned relationships with suppliers that prioritise long-term stability and strategic alignment.
To what extent are businesses prioritising alignment in values—such as sustainability and digital maturity—when selecting suppliers?
Value alignment is a decisive factor in supplier selection. Businesses are no longer choosing partners based solely on price or availability; they are seeking suppliers who reflect their values and strategic direction. This includes sustainability, digital maturity, and social responsibility.
Businesses want to work with suppliers who can support their journey toward becoming more responsible and digitally advanced. With a third (33%) of leaders citing digital incompatibility as a top challenge, and 83% struggling to find sustainable suppliers, it’s evident that alignment in values is not just a preference—it’s a necessity. Procurement teams are actively expanding their supplier pools to find partners who can enhance their efforts in these areas and contribute to broader organisational success.
https://cdn.mos.cms.futurecdn.net/bNHjXbitrAkdjDNwzfwDpY-2560-80.jpg
Source link
