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Procurement in 2025

The procurement of a corporation’s materials and services is, one could argue, the most complex business function in 2014. CPOs and their procurement teams have to balance a staggeringly complex landscape of pressures and requirements to execute their jobs at the highest level: from business pressures to contain costs, to legal pressures to comply with regulations, to social pressures to source ethically.

In such a daunting landscape, it is difficult to imagine new challenges emerging, but that is exactly what will happen in the decade to come. As this report will attempt to describe, issues such as globalization, social transparency, risk management and sustainability will bring new challenges to all the best procurement organizations around the world by 2025. While these changes will pose new challenges, they will also bring new opportunities for leaders who see the future and move their organizations into the new world that has already begun to emerge.

This EY report presents ten “change dimensions,” which are the high level areas in which we see the procurement function evolving in the next decade. For each change dimension, we present a short description of the functional, as well as a sense of how disruptive the change curve might be in the coming decade. We follow these remarks with a detailed discussion of each dimension and close with some potential actions to consider in 2014. On behalf of EY, we thank you for taking the time to review our report on the future of this complex and challenging function. We hope you will find our vision of procurement in 2025 insightful and the discussions thought provoking.

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