Procurement at a crossroads: How South Africa can lead in a changing market?
Amid unprecedented global turbulence, South African leaders are urged to rethink their strategies: to harness technology, elevate strategic influence, and champion sustainable practices before being outpaced in a rapidly evolving marketplace.
Published globally by the Chartered Institute of Procurement & Supply (CIPS) in partnership with GEP, the report draws on insights from 281 senior procurement executives around the world. It presents a picture of an industry in transition—moving away from transactional roles towards strategic, boardroom-level influence.
'Procurement is no longer a support function. It is a strategic lever for resilience, innovation and responsible growth,' says Paul Vos, regional managing director at CIPS Southern Africa. 'But for South African procurement professionals to keep pace globally, they must prioritise digital upskilling, strategic influence and ESG delivery, or risk being sidelined.'
Intelligence meets execution
A key global finding is the mainstreaming of artificial intelligence in procurement. Over 83% of respondents believe AI will improve operational efficiency, and 81% expect it to automate significant elements of procurement workflows.
'South African procurement teams must embrace AI tools, not just for efficiency, but for critical functions like tariff modelling, supplier diversification and dynamic inventory,' says Vos. 'This is no longer experimental technology. It's a competitive requirement.'
Despite this shift, the report notes a worrying trend: investment in sustainability skills has declined for the first time in several years, indicating shifting corporate priorities amid budget constraints and automation-led transformation.
Escalating supply threats
The CIPS Pulse index shows supply chain risk perception at its highest level to date. Geopolitical instability, US-led protectionism, shipping route disruptions, and retaliatory tariffs are major contributors.
South African companies—especially those dependent on imported goods and global commodity exports—are especially vulnerable.
'Now more than ever, South Africa must diversify supply chains, build digital resilience and localise procurement where possible,' Vos urges. 'Procurement professionals have a central role to play in helping companies weather the volatility.'
Leadership gaps persist
One positive trend globally is the growing presence of procurement at the highest levels of corporate leadership. Twenty-five percent of procurement leaders now hold a permanent seat on the main board—up from 20% in 2024—with alignment between procurement and executive strategy particularly strong in larger companies.
In South Africa, however, procurement's boardroom visibility remains uneven.
'Procurement is the voice of value in many organisations globally,' says Vos. 'If South African professionals can adopt a more strategic mindset, backed by data, commercial fluency and leadership presence, we'll see more of them stepping into C-level roles and driving national economic performance.'
The report shows a notable shift in development priorities, with strategic thinking (47%), leadership (45%), and influencing skills (43%) topping the list—outpacing technical capabilities like contracting and negotiation.
'The demand is clear: leaders who can speak the language of strategy, risk and resilience are in short supply,' says Vos. 'It's time South Africa produced more procurement professionals who are ready to lead, not just manage.'
Resilience sparks growth
The data paints a clear picture: procurement is undergoing seismic change, and South African professionals must act with urgency. By embracing automation, cultivating leadership capabilities, and embedding sustainability into their strategies, the sector can not only stay relevant—but play a pivotal role in shaping a more resilient and competitive economy.
The time to act is now.
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