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Procurement leaders keen to invest in new technologies and expect 2024 spend increase, Amazon Business’ State of Procurement Data Report reveals

Amazon Business Report

According to Amazon Business’ new 2024 State of Procurement Data Report, procurement teams expect their budgets to rise next year, while many leaders are evaluating investment in tools and technologies (such as AI) to deliver optimisation and bolster a more strategic approach.

The report garnered insights from 3,108 procurement decision-makers and senior leaders from organisations across Europe, the UK and the US, spanning a number of industries.

Following a year of reducing costs, more than half (53%) of all respondents reported that they expect their budgets to increase in 2024.

Procurement leaders – who listed efficiency and complexity of procurement as their top challenges – plan to use the funds they have saved in 2023 to explore approaches that will optimise procurement processes and allow for more strategic functioning.

Elsewhere, technology proved to be a hot topic with a huge 98% of respondents planning to invest in analytics and insights tools, automation and artificial intelligence (AI) over the next few years.

Commenting on the report, Alexandre Gagnon, vice president of Amazon Business Worldwide said: “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.” 

He added: “At Amazon Business, we develop scalable solutions for customers and solve their biggest procurement challenges, and I couldn’t be more excited about the evolution of procurement. 

“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 optimisation while future-proofing their companies and organisations. 

“Ultimately, procurement not only keeps operations running, but plays an integral role in achieving key organisational goals, and with smart business buying, companies have procurement solutions to serve as a growth lever for organisations.”

In other findings, 95% of decision-makers acknowledge that there’s room for procurement optimisation, while 85% said setting or achieving strategic sustainability goals for procurement is prevented by the difficulty of sourcing suppliers that follow sustainable practices.

81% of respondents said that they had mandates to buy from certified sellers, which might include sustainable, local or disadvantaged group-owned businesses. 

Interestingly, 40% of those without mandates still consider supplier environmental, social and governance (ESG) factors. 

Download The 2024 State of Procurement Data Report here.

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