Top 5 Supply Chain Risks in 2025
5 Procurement Trends we're seeing
Hello PROCUREMENT LEGEND,
In this edition, we cover:
Top 5 Supply Chain Risks for 2025
Challenges Facing Mid-Sized Businesses
5 Game-Changing Procurement Trends for This Year
Let’s get started!
Top 5 Supply Chain Risks for 2025
The supply chain landscape is increasingly complex. Everstream Analytics has identified the following critical risks:
Climate Change & Extreme Weather (90% risk score)
Geopolitical Instability (80%)
Cybercrime (75%)
Shortages of Rare Metals & Minerals (65%)
Forced Labour Crackdowns (60%)
Why It Matters:
In 2024, 84% of companies experienced disruptions. I think being prepared is essential. These risks can significantly alter procurement strategies, from securing raw materials to ensuring supplier compliance.
Action Step:
Assess your supply chain for vulnerabilities—Utilise data-driven strategies to enhance resilience against these risks in 2025.
ICYMI
Challenges Facing Mid-Sized Businesses in 2025
Mid-sized businesses are gearing up for a challenging year with the following key concerns:
29% anticipate supply chain disruptions
28% are worried about rising operating costs
32% expect to need additional financial support
Why It Matters:
These challenges can reduce profit margins and stall growth. Innovative solutions, such as leveraging AI to optimise operations or renegotiating supplier contracts, are crucial to overcoming these hurdles.
Not to mention using tech that can help you mitigate all of these for a fraction of the cost.
Action Step:
Please look at your cost structures and explore ways to diversify your revenue streams to mitigate supply chain disruptions.
5 Trends Redefining Procurement in 2025
AI-Driven Transformation:
AI is evolving from automation to managing complex workflows autonomously, allowing teams to focus on strategic initiatives.Procurement Orchestration:
Self-service procurement platforms now incorporate predictive analytics for more informed decision-making. I’ve never been more bullish on this capabability.Digital Transformation:
The biggest boost is going to come from well implemented Gen AI. Don’t sleep on it.Sustainability and ESG:
Ethical practices and sustainability are becoming essential for securing long-term supplier partnerships. However - there’s a caveat here. We’re seeing a rollback in the US of these policies and that might see the end of a highly politicised agenda.Supplier Diversity and Inclusion:
Building diverse supplier networks is gaining importance and aligning with ESG objectives…as per the above. We’re likely going to see some push back here too especially from the US organisations.
Why It Matters:
Procurement is rapidly changing. Adapting to these trends can open up opportunities for growth and innovation.
Action Step:
Please review your procurement processes to ensure they align with these trends and are ready to leverage new technologies. Be aware of where you have gaps and where you might need to adapt…fast.
What’s Next?
2025 will be a transformative year for procurement and supply chains. From tackling global risks to embracing cutting-edge trends, there's much to address.
P.S.
Please support us by subscribing to the World of Procurement YouTube Channel. We delve deeper into these insights and more. Join our community and stay ahead of the curve.
Stay legendary,
Daniel