A majority of procurement teams, (53%) expect their budgets to rise next year. A large part of the planning includes how to invest in technology, according to a recent report from Amazon Business 2024 State of Procurement Report.
Among respondents, 98% said they were planning investments in analytics and insights tools, automation, and artificial intelligence (AI) over the next few years.
“We are entering a new era of smart business buying where senior leaders are understanding the impact procurement can have on efficiency and overall company success,” said Alexandre Gagnon, vice president of Amazon Business Worldwide, in a statement. “Heading into 2024, the procurement function is now cross-disciplinary, spanning both functional and strategic purviews as buyers are planning to invest more in technology and optimization while future-proofing their companies and organizations. Ultimately, procurement not only keeps operations running, but plays an integral role in achieving key organizational goals, and with smart business buying, companies have procurement solutions to serve as a growth lever for organizations.”
As procurement expands within companies and organizations, leaders are being forced to find ways to optimize their processes so that they can allocate more time and resources to addressing strategic challenges. The report also found that:
- 95% of decision-makers acknowledge that there’s room for procurement optimization.
- 85% of respondents say the difficulty of sourcing suppliers that follow sustainable practices prevents their company from setting or achieving strategic sustainability goals for procurement.
- 81% of respondents had mandates to buy from certified sellers, which might include sustainable, local, or disadvantaged group-owned businesses. Among those without mandates, 40% still consider supplier environmental, social, and governance (ESG) factors. Despite the desire for responsible purchasing (85%), difficulty finding sustainable suppliers hinders sustainability goals.