Welcome to psd’s review of the Procurement and Supply Chain sector. Here you will find our periodic review of the trends we are seeing and the placements we have made to give you an overview of the recruitment market.
2025 got off to a blistering start with several searches commissioned at senior and executive level with new and existing clients. Uncertainty and geopolitical tensions continue to dominate the headlines and the Procurement and Supply Chain community is rising to the challenge. Disruption and unforeseen circumstances seemed to be the norm. Fluctuating demand means that strategies such as reshoring, nearshoring, and diversifying suppliers are effective strategies for helping companies to navigate turbulent waters. Creativity and influencing skills are essential for the procurement and supply chain executive. Value definition goes beyond beyond cost savings. Procurement leaders are now evaluated on resilience, sustainability and regulatory compliance.
These new metrics reflect an environment where long term adaptability, ethical sourcing and effective risk management equal financial gains. Procurement functions have historically achieved success by mastering supplier management, cost optimisation and risk mitigation, among other areas. The procurement operating model is reliant on human expertise and often struggles with inefficiency, fragmented data, and labor-intensive processes. AI offers solutions and creates more opportunities to focus on high-value activities. Procurement leaders are grappling the affect AI will have on labour even ging so far to ask if the procurement function exist in the future. AI will affect the operating model, but procurement functions will continue to exist: just in a different way.
Jump to:
The Evolution of KPIs and Value Definition
Digital Transformation and Technology Skills in Demand
Sustainability and ESG as Compliance Imperatives
Talent, Upskilling and the Rise of Soft Skills
The Strategic Case for Resilience Investment
Embedding ESG into the Supply Chain Strategy
Championing Change: The Future of Procurement Leadership
The Evolution of KPIs and Value Definition
We have noticed that traditional procurement KPIs have evolved. Cost savings have usually been more straightforward to measure, but many of the addition metrics are subjective and not as defined. Resilience, for example, can be measured by supply chain flexibility or disruption management. Sustainability KPIs track carbon emissions, while supplier diversity and ethical compliance are becoming more central to supplier scorecards. A shift in how procurement teams report successes to the board and management is a key aspect of KPI evolution. Communicating the total value impact now extends beyond cost savings. It requires procurement to demonstrate how its decisions contribute to business resilience, regulatory compliance and long-term sustainability. Executives must move beyond traditional cost metrics and adopt a more holistic view of TCO that integrates geopolitical risk, environmental regulations and supply chain flexibility. This shift will require new tools and methodologies to ensure that decisions are made with a long-term strategic perspective, rather than a short term focus on cost savings.
Digital Transformation and Technology Skills in Demand
As ever technological integration is a key component and procurement and supply chain. Digital transformation is accelerating, with AI, machine learning, blockchain, and predictive analytics enhancing procurement processes. These technologies are optimising contract management, forecasting, sourcing, and supplier efficiency. With our recent searches, we have seen that technology continues to dominate the required skill set. The adoption of cloud-based procurement platforms is streamlining supplier management, enhancing collaboration, and improving data visibility for better decision-making
Sustainability and ESG as Compliance Imperatives
Environmental, social, and governance (ESG) initiatives are increasingly shaping procurement decisions. Circular supply chains, carbon footprint reduction, and responsible sourcing are becoming standard expectations for suppliers. In 2025, regulatory demands and stakeholder expectations around sustainability and compliance are substantially more stringent. Leaders must acknowledge that sustainability is more than a corporate social responsibility — it is a compliance requirement and a key source of business value.
Compliance with environmental, social and governance (ESG) standards is increasingly scrutinized by investors, regulators and consumers, making it a non-negotiable part of doing business. Leaders need to take on an active role in ensuring that ESG goals are embedded into supply chain strategies. For example, supply chain managers must track and reduce Scope 3 emissions, and ensure that suppliers adhere to ethical employment practices.
Talent, Upskilling and the Rise of Soft Skills
As procurement becomes more strategic, there is increasing demand for talent with expertise in data analytics, digital technologies, and sustainability. Companies are investing in upskilling initiatives to cover all skill gaps. Softer skills such as resilience, which is a key priority but isn’t consistently defined across businesses and industries.
The Strategic Case for Resilience Investment
As procurement becomes more strategic, there is increasing demand for talent with expertise in data analytics, digital technologies, and sustainability. Companies are investing in upskilling initiatives to cover all skill gaps. Softer skills such as resilience, which is a key priority but isn’t consistently defined across businesses and industries.
We have discussed resilience with CPOs and they acknowledge it comes at a cost. Executives need to be prepared. They label costs associated with resilience-building measures as long-term investments rather than short-term financial burdens. The true value of resilience is in ensuring business continuity during disruptions, preventing revenue loss and maintaining trust. CPOs advocating for resilience initiatives at the executive level must communicate the long-term financial benefits rather than focusing solely on immediate cost savings. Regulatory demands and stakeholder expectations around sustainability and compliance are substantially more stringent. CPOs acknowledge that sustainability is more than a corporate social responsibility — it is a compliance requirement and a key source of business value.
Embedding ESG into the Supply Chain Strategy
Compliance with environmental, social and governance (ESG) standards is increasingly scrutinised by investors, regulators and consumers, making it a non-negotiable part of doing business. CPOs need to take on an active role in ensuring that ESG goals are embedded. For example, supply chain managers must track and reduce Scope 3 emissions, and ensure that suppliers adhere to ethical employer practices. At psd encourage these objectives to be acknowledged in job briefs.
Championing Change: The Future of Procurement Leadership
CPOs who foster a culture of adaptability and invest in transformative tools and will be best positioned to grow in this new landscape. Advocating change will not only ensure survival but also secure a competitive edge, championing a future where procurement is as strategic as it is essential. This will be stand out year for forward thinking procurement and supply chain leaders. They are constantly being challenged and asked for action. The evolution of procurement from widget buyers so strategic partners show that they perennially step up.
