Digital procurement plays a strategic role in driving innovation, boosting operational efficiency, and building resilience across organizations, says new research from Amazon Business.

And a big pillar of change for procurement managers is to use more digital technology to generate better organizational results.

A survey of nearly 3,500 procurement decision-makers and senior leaders across eight regions (U.S., France, Germany, Italy, Japan, Mexico, Spain, and the U.K.) and nine industries by Amazon Business reveals significant trends reshaping the procurement landscape. The industries include government, retail, manufacturing, technology, health care services, medical/pharma, telecom, financial services, and hospitality.

Here are some insights from Amazon Business’ digital procurement report.

5 key developments in digital procurement

1. Digital transformation prioritized
   Digital transformation, driven by advancements in AI and data analytics, is reshaping procurement operations. More than 64% of decision-makers identified generating better insights as a top priority. However, integrating innovative technologies and ensuring cybersecurity remain persistent challenges.
2. Emphasis on socially responsible purchasing (SRP)
   The importance of sustainability and diversity in supply chains continues to grow. 80% of organizations report working toward certified supplier mandates, reflecting a broader commitment to environmental, social, and governance (ESG) goals. Almost al respondents (99%) have ESG objectives, with 63% of decision-makers and 61% of senior leaders noting increased focus on these goals over the past year.
3. Resilient supply chains as a strategic focus
   Building resilient and agile supply chains is a top priority for 69% of senior leaders and 64% of decision-makers. However, global supply chain dependencies add complexity, with 26% of respondents reporting suppliers outside their home countries, increasing exposure to risks such as disruptions and regulatory changes.
4. Procurement’s strategic role overlooked
   Despite procurement’s growing influence in driving business outcomes, only 46% of decision-makers completely agree that the function is included in top-level decision-making forums. This highlights a gap in aligning procurement with broader business strategies and underscores opportunities for better integration.
5. Supply chain disruptions and inflation remain key challenges
   One-third of respondents cited supply chain disruptions and inflation as significant risks, with new regulations and market competition further complicating procurement efforts. These challenges are expected to persist over the next two years.

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