Supply, skills and sustainability: futureproofing procurement for the UK

UK procurement professionals face a range of challenges in the next few years, from global political and economic uncertainty to recruitment and making the most of technology. Procurement in the UK is changing. The wider environment, with political uncertainty coupled with economic volatility, makes for a challenging landscape.

Procurement is increasingly tasked with striking the right balance between mitigating cost increases and ensuring security of supply, all while meeting broader environmental, social and governance (ESG) goals.

According to Amazon Business’ 2025 State of Procurement Report, 33% of procurement leaders see supply chain disruptions or delays as the most likely factor to pose organisational challenges or risks in the next two years, and one in four (25%) worry about political instability.

But the wider global context is not the only issue that is the playing on the mind of those working in procurement. Procurement professionals are also worried about the potential for new or changing laws or regulations, as well as increased competition.

The emergence of new technologies is also causing headaches, particularly around integrating these into existing systems. Cybersecurity is a concern, as is the spread of artificial intelligence (AI).

Internal issues

Alongside coping with external threats, procurement teams are under pressure internally, and this is only likely to increase as conditions become more turbulent.

More than four in 10 (44%) leaders are wrestling with operational challenges in the wake of supply chain disruption, technical change and internal processes. In the UK, 49% of procurement leaders report efficiency and complexity as their biggest challenge.

Capita is one organisation that has sought to introduce greater efficiency into its procurement processes. It uses Amazon Business to order essential business items, providing end-users with a simple way to order what they need in a controlled environment.

“The old way we use to work was very manual and high-labour intensity in terms of the effort required to place an order,” says Suraj Naik, chief procurement officer. “Amazon Business means our teams can be more productive and I can move them up the value chain in terms of their impact on our organisation.” There have been other efficiency benefits, too; knowing it can get items delivered the next day also means it no longer needs to store and manage stock.

Many procurement teams are focusing on developing effective supplier relationships, as businesses seek to ensure security of supply in a turbulent environment. This is more of a focus than cost, which is seen as less of a priority than it was a year ago.

Another internal challenge is attracting, retaining and developing talent in a competitive jobs market, and this is only likely to increase in the future as the skill-set evolves and the battle for talent continues.

One issue is how procurement is perceived within its own organisation, with many professionals feeling others in their organisation fail to appreciate the value procurement brings. Overcoming internal misconceptions and boosting the status of the function will be vital if it is to successfully impact some of the wider challenges.

Responsible buying

As procurement organisations look to the future, they’re also increasingly tasked with ensuring the business operates in a responsible manner throughout the supply chain. This means factoring in issues such as sustainability or responsible sourcing when making decisions, and being able to assess the credential of suppliers.

Almost all (99%) now say their organisation has specific ESG goals, and in the UK 66% say overarching ESG goals have increased in the past year.

Most of these relate to sustainable practices but some also have mandates around using local businesses, small firms, diversity-owned enterprises or socially or economically disadvantaged businesses.

Platforms such as Amazon Business can help with this, enabling organisations to specify the use of certified or approved suppliers in line with wider company policies. Nottingham Trent University is one organisation that has made use of this, as part of its plan to become net-zero by 2040.

“We’ve selected products from East Midlands region suppliers to come up first in the product search results,” says Claire Davies, sustainable procurement manager. “That enables us to support our local economy and allows us to reduce our carbon emissions by reducing the
amount of mileage travelled.

“By turning on the sustainability certificates against the products we’re going to see a lot more sustainable purchasing taking place.”

The quest for visibility

Staying on top of the various challenges, while also tackling longer-term goals such as ESG, means it’s essential procurement teams have the visibility they need into what is spent and with which suppliers.

But 41% of procurement leaders see a lack of data to demonstrate the impact procurement has as a significant hurdle while 34% see “improving reporting and analysis” as a top area where they want to see procurement spending more time or energy in the next year.

Technology will have a vital role to play in helping to address this, and there is more that can be done in this space. Analytics and spend management tools can help organisations better understand what they are buying, providing them with the information they need to review
policies and make better decisions.

AI also has the potential to help automate this, providing information in an easily digestible format, and can even be used to forecast demand based on previous buying habits. This is likely to be a growing focus over the coming years as those in procurement search for more efficient ways to analyse spend and identify opportunities for cost reduction.

Originally published on City AM.