Sustainability is set to play a key role in reshaping global procurement and supply chains in 2025, according to a new report by GEP.
The GEP Outlook 2025: Procurement & Supply Chain report noted that with the world facing increasing regulatory pressures, energy market volatility, and rising sustainability demands, the business community will need to invest in measures that both enhance resilience as well as align with broader environmental and social goals.
‘Calm before the storm’
“After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm,” commented John Piatek, vice president, GEP.
“But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025.”
Rising energy costs and regulatory mandates are accelerating the transition toward sustainable operations, prompting firms to restructure their supply chains to improve sustainability, meet compliance requirements, and respond to evolving consumer and stakeholder expectations, the report states.
Six areas of focus
The report, which was authored by the AI-powered procurement provider’s thought leadership council, identifies six areas of focus for procurements and supply chain leaders in 2025, including the need to invest in AI to streamline processes and enhance decision-making; the importance of KPIs for flexibility, carbon reduction, and supplier diversity; the need to strengthen supplier audits and integrate compliance into strategic procurement decisions; reassessment of total cost of ownership (TCO) metrics to include geopolitical and environmental risks; investment in renewable energy and ESG compliance requirements; and the need to focus on cost savings in a likely high-tariff environment.
‘The GEP 2025 Outlook report offers an invaluable resource for procurement and supply chain leaders seeking to navigate challenges and leverage opportunities in a rapidly evolving landscape,’ GEP said in a statement. ‘The report explores these trends in detail, offering practical recommendations for driving agility, resilience, and sustainable growth.’ Read more here.
