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A webinar by Gartner titled, “Procurement Objectives 2025: Your Action Plan to Prepare Now,” discusses five procurement objectives that are to reshape procurement function by 2025. If you haven’t reviewed the suggestions yet, then it is time you define your procurement objectives now as 2025. It’s silly if you are the first to join a celebration party but intelligent if you rank first in procurement.

Procurement Objectives 2025

	Present	Future
Value Drivers	Cost Savings and Risk Mitigation	Execution Speed and Business Insight
Procurement’s Role	Sourcing Executor	Sourcing Advisor
Business Role	Procurement Customer	Disciplined Sourcing Agent
Delivery Model	Standalone Corporate Function	Hybrid Center of Excellence (COE)
Resources	Execution Staff and Core Technology	Professional Advisory Staff and Customer-Oriented Technology

Table Source: Gartner

Procurement Objective 1: VALUE DRIVERS

Initially, Cost Savings and Risk Mitigation were the two major value drivers. Moving forward, these will evolve into Execution Speed and Business Insight. The shift in value drivers implies a stronger focus on leveraging procurement insights about spends, suppliers, and markets to identify new sources of value generation. With the integration of advanced analytics tools, as outlined by McKinsey, procurement benefits from a centralized data repository, which accelerates execution while enhancing supplier relationships and risk management.

Download Whitepaper: Procurement Experts Outlook 2024 and Beyond

Procurement Objective 2: PROCUREMENT’S ROLE

The evolution from sourcing executors to sourcing advisors signifies a shift toward assuming full responsibility as a sourcing advisory, with a focus on top-, mid-, and low-tier buys. This transition ensures that the department delivers more high-value work rather than merely transactional deliverables. This development of process expertise and skills is critical for training new staff, allowing category managers to focus on top-tier purchases and developing newer strategies in category management, as observed in recent insights from Supply Chain Connect.

Download Whitepaper: Elevating Sourcing Process to the Next Level with Advance Deal Sourcing Strategies

Procurement Objective 3: BUSINESS ROLE

The third change in paradigm is that of the role businesses are to play. So far, the procurement function has been a mere customer to fulfill a business requirement. But going forth, this is to be replaced by a newer procurement objective wherein procurement will act as a disciplined sourcing agent to its business partners. This entails greater responsibility in making the right sourcing decision, ownership of consequences, and vendor relationship management.

The objective will expand and implement training capabilities for assisting business partners source better through proper evaluation & monitoring of sourcing.

Procurement Objective 4: DELIVERY MODEL

The transition from a standalone corporate function to a hybrid center of excellence implies less transactional work and increased business-partner management. This model promotes a greater focus on process excellence over merely enforcing category knowledge and sourcing discipline.

Learn More: Zycus eProcurement software

Procurement Objective 5: RESOURCES

The final objective for the near future in procurement involves an eclectic mix of the most resourceful advisors and world-class, customer-oriented technology. Organizations are encouraged to invest in human capital and advanced technologies that are smart and intuitive, capable of querying vital figures from expansive data sets. High technology like AI, as discussed in a KPMG article, will significantly improve the customer’s purchasing experience. In updating these objectives, it is essential to integrate contemporary data points and forecasts effectively to maintain the relevance and strategic direction of procurement functions.

Zycus Case Studies

To illustrate how businesses can effectively enhance supplier management through the adoption of technology, two notable case studies involving Zycus solutions offer valuable insights.

Firstly, Howden GmbH faced significant challenges with manually driven supplier management that was time-consuming and prone to human errors. By implementing Zycus’s iSupplier and iContract solutions, Howden achieved a 40% reduction in supplier performance cycle time, obtained ISO 9001 certification, and enhanced real-time visibility across its operations. This transformation allowed Howden to transition seamlessly from manual processes to a more efficient and transparent supplier management system, aligning with the modern procurement objective of improving execution speed and business insight.

Additionally, Abdul Latif Jameel Motors Saudi Arabia encountered inefficiencies due to manual sourcing and supplier onboarding processes. By utilizing Zycus’s Source-to-Contract and Procure-to-Pay (JS2P) solutions, Abdul Latif Jameel Motors managed to digitize its entire procurement lifecycle, achieving a 30% reduction in average supplier setup time. This enhanced visibility not only improved efficiency and compliance but also bolstered supplier performance monitoring, showcasing the advantages of transitioning from a standalone corporate function to a hybrid center of excellence.

Read the full success story here: Abdul Latif Jameel’s Procurement Transformation Journey

Conclusion

The evolution of procurement objectives reflects a strategic shift towards speed and insight, advising roles, disciplined sourcing, hybrid delivery, and resource optimization. With these future-ready objectives, organizations can redefine their procurement processes to drive value and efficiency. As demonstrated in the case studies, leveraging modern technologies, like those provided by Zycus, businesses can transform procurement into a powerful driver of growth and innovation, ensuring they remain competitive and responsive in an ever-evolving market landscape. This transformation underscores the importance of being early adopters of advanced procurement solutions, much like the forward-thinking companies who have reaped substantial benefits by integrating these solutions into their operations today.