In its 2024 State of Procurement Report, Amazon Business noted that a majority of procurement teams expect their budgets to rise next year, and many leaders are evaluating how they can further invest in tools and technologies to deliver optimization and a more strategic approach to business buying with sustainability a significant consideration.
The report indicates that 53% of respondents expect their budgets to increase in 2024. After a year of focusing on reducing costs, procurement leaders are now planning to use the funds they saved to optimize their procurement processes so that they can allocate more time and resources to addressing strategic challenges and operating more strategically with the efficiency and complexity of procurement listed as the top challenge they’re currently facing. Among respondents, the company noted, 98% said they planned investments in analytics and insights tools, as well as automation and artificial intelligence, over the next few years.
In addition, according to Amazon:
- 95% of decision-makers acknowledged that they can do more to maximize optimization.
- 85% of respondents said the difficulty of sourcing suppliers that follow sustainable practices prevents their company from setting or achieving strategic environmental goals for procurement.
- 81% of respondents had mandates to buy from certified sellers, which might include sustainable, local or disadvantaged group-owned businesses.
- 40% of those without mandates still consider supplier environmental, social and governance factors.
- 85% of respondents stated that, despite the desire for responsible purchasing, difficulty finding sustainable suppliers hinders environmental goals
“We are entering a new era of smart business buying where senior leaders are understanding the impact procurement can have on efficiency and overall company success,” said Alexandre Gagnon, vp of Amazon Business Worldwide, in introducing the report. “Heading into 2024, the procurement function is now cross-disciplinary, spanning both functional and strategic purviews as buyers are planning to invest more in technology and optimization while future-proofing their companies and organizations. Ultimately, procurement not only keeps operations running but plays an integral role in achieving key organizational goals, and with smart business buying, companies have procurement solutions to serve as a growth lever for organizations.”
