The Rise of Connected Procurement

Global shocks, regulatory volatility and inflation continue to disrupt global supply chains, making procurement a critical driver of agility and competitive advantage. Many organizations, however, remain stuck with outdated, reactive processes. Manual workflows limit organizational focus, supplier insights are locked in fragmented systems and talent gaps are widening as new digital skills become critical. Existing systems struggle to adapt to rapid market and economic changes, leaving businesses exposed and unable to respond with speed or confidence.

As the cost of inaction grows, CXOs are starting to act. Economist Impact’s 2024 survey of global C-suite executives showed procurement is moving out of the back office: 83% of executives now say it plays a vital role in managing enterprise risk, up from just 64% the year before.

Connected Procurement: Building Block for Agility and Resilience

While many organizations have digitized parts of their procurement process, few have truly connected them. The next step in reimagining procurement is connection. Connected procurement integrates every stage of the source-to-pay process, from strategic sourcing, contracting, purchasing to payment, into a seamless, data-driven workflow. By breaking down silos and creating real-time visibility, it makes procurement faster, more transparent and less prone to variances, laying down the groundwork for greater agility and resilience.

Procurement is also emerging as a prime candidate for autonomy, as many tasks are repetitive and rules-based. Moving to autonomy represents a business model shift that integrates data, AI insights and flexible sourcing for faster decisions.

Industry Leaders Paving the Way

Accenture research shows that 11% of companies already operate with advanced procurement capabilities, while another 36% expect to get there within two years.

These advanced capabilities include modular platforms and AI that boost efficiency, integrate with legacy systems, upskill teams, enable suppliers, enhance compliance via blockchain, and mitigate risks with predictive analytics and diversified sourcing. They improve cross-functional collaboration to overcome workforce challenges and strengthen supply chain resilience.

In this journey to connected procurement, companies face four familiar challenges: economic, technological, organizational and geopolitical. Industry leaders are tackling these challenges in instructive ways. 

1. Economic Pressures 

Digital procurement is rarely inexpensive. Infrastructure, training and platforms are costly, and inflation or budget freezes often push executives to justify short-term ROI before securing long-term investment. Accenture's supply chain maturity research found that while eight in 10 respondents believe their supply chain and manufacturing capabilities align with business priorities, budget limitations stall progress.

To overcome these challenges, organizations should focus on cost-effective solutions, adopting modular or cloud-based platforms like SAP Ariba, Coupa, iValua and Jaggaer for phased implementation and hold them accountable for AI innovation. Targeting ROI through quick wins in areas like spend analytics or supplier management helps demonstrate measurable savings, build momentum, and leverage AI and automation for efficiency.

Take our example. Accenture needed to address challenges of limited visibility, control and standardization in its procurement technology infrastructure. We reengineered our procurement strategy with SAP Ariba, shifted to a cloud-based platform that reduced infrastructure costs and enabled rapid global deployment. By embracing automation, integrating AI-driven insights, and streamlining purchasing through guided buying, we have minimized manual effort, improved contract compliance, delivered cost savings and aligned procurement with broader business priorities. 

2. Technology Gaps

Many companies rely on outdated ERP systems that hinder modern procurement, causing inconsistent data, poor compliance and security risks. Full replacement is costly, but procurement tools with API connectors, low-/no-code platforms and blockchain bridge gaps enable faster integration and strengthen security without requiring expensive, large-scale system overhauls.

For instance, a multinational telecommunications giant leveraged an integration platform to seamlessly connect its procurement systems with multiple backend and third-party platforms. It enabled real-time data exchange across procurement, finance and supplier networks. This API-led approach introduced reusable integration assets that accelerated deployment timelines and minimized maintenance overhead.

3. Organizational and Workforce Resistance

Even with advanced technology, digital adoption often falters due to resistance to change. Employees fear job loss, disruption, or lack relevant digital skills. Silos between procurement, IT and finance add friction. Companies must invest in change management, AI training, clear communication and streamlined onboarding to drive alignment, minimize disruption and facilitate successful adoption.

Siemens addressed this by putting people at the center of its transformation. The company built tailored digital training programs for procurement teams, connecting new tools directly to daily work. It designed upskilling initiatives around how employees learn, which improved adoption rates and reduced resistance. By encouraging self-directed learning and tying transformation to employee growth, Siemens built a culture of continuous learning that supported its digital transformation goals.

4. Geopolitical Volatility

Tariffs, trade restrictions, sanctions and crises disrupt procurement, exposing vulnerabilities, and slowing digital adoption. Companies are responding by diversifying suppliers, using AI risk assessments, applying predictive analytics and nearshoring production to strengthen supply chain resilience against future shocks.

The Promise of Digitally Connected Procurement

Once these challenges are addressed, organizations can adopt advanced tools that reshape procurement. Supplier 360 dashboards consolidate performance metrics and supplier profiles in one view, giving managers real-time insights. Guided sourcing platforms can streamline sourcing decisions with AI. Autonomous source-to-contract solutions combine AI, automation and smart contracts to optimize the entire sourcing lifecycle. Touchless requisition-to-pay systems eliminate manual steps, cut errors and shorten cycle times.

Together, these advances signal the rise of connected procurement where automation, integration and AI insights transform procurement from a back-office function into a strategic advantage, driving savings, resilience and creating long-term value.