The future of procurement

To keep ahead of change, procurement needs to not just evolve but innovate. Quickly.

Organizations are facing unprecedented change and disruptions that threaten their future viability. Inflationary pressures, expanding regulatory requirements, pricing fluctuation, an ever-evolving industry landscape due to M&A activity, and shifts to outcome-based pricing are all key forces compelling procurement leaders to reevaluate strategies.

In the midst of continuous disruption, it’s time for procurement leaders to be the disruptors, bring the function to life, work across siloes, and shift its reputation from cost-cutting to customer-centric and business enabling; this can be achieved with wholesale transformation that engages executives and peers, allowing procurement to take on greater strategic responsibility.

Added to the global picture are rising geopolitical tensions, which are damaging and shifting supply chains, the economic hangover of the COVID-19 pandemic, as well as soaring costs driven by broader inflationary pressures.

How can procurement professionals navigate all this whilst also building a digital-first function that can support the wider business in their growth aspirations? Companies should challenge their thinking and consider how they can rebuild the function focusing on the entire target operating model spanning the service delivery model (on and offshore), process, people, governance, data and technology layers whilst driving the needs of the entire business, delivering sustainable value and meeting regulatory compliance at the core.

Procurement needs a new perspective that is forward-looking, focused on aiming to maximize third-party relationships, innovation, integration, collaboration and data-driven performance.

Envisioning frictionless purchase and delivery

The CPO agenda for the future of procurement

Leading procurement organizations have developed an agenda to deal with disruption. They are moving into the future by becoming:

Third party centric

Drive supplier performance and take partner relationships to a new level.

Category innovators

Use deep supply market insights and predictive analytics to deliver on organizational needs.


Become user-friendly by delivering seamless procurement experiences and business compliance.


Integrate within the wider supplier risk and value chain agenda, while driving a social, sustainable agenda.

They are also enabling the future of procurement with:

Insights, analytics, and platforms

How do you capitalize on data to drive work prioritization and deliver superior procurement experiences?

The workforce of the future

Are your procurement professionals ready to become relationship brokers and data masters?

An agile operating model

How do you restructure procurement to enable flexibility and a stronger connection to other parts of the business?

It’s no longer business as usual for procurement.  There are more disruptors at work than ever before – and they’re moving fast and at scale. The key to success is to develop a blueprint for how your procurement team can turn these disruptors into opportunities to grow and gain competitive advantage.

This is what the future requires of procurement.  Contact us today to accelerate your digital transformation journey.

Contact us

Dipan Karumsi

Dipan Karumsi

Principal, Procurement and Outsourcing Advisory Practice Leader, KPMG U.S.

+1 614-249-2384
Yatin Anand

Yatin Anand

Principal, Procurement and Outsourcing Advisory, KPMG US

+1 312-665-2491
Chris McCarney

Chris McCarney

Principal, Advisory, Procurement & Outsourcing Advisory services, KPMG LLP (U.S.)

+1 312-665-1262