How procurement teams are responding to a complex risk environment
With supply chain disruption, rising prices and pressure to meet ESG and CSR aspirations, it’s more important than ever that organisations have control over how they spend budgets
Procurement isn’t what it used to be. Once a behind-the-scenes function focused on reducing costs is now turning into a strategic powerhouse shaping how businesses respond to some of the biggest challenges of our time. From navigating unpredictable supply chains to meeting ambitious ESG goals, procurement teams are at the heart of the action, balancing risk, resilience, and responsibility.
The stakes have never been higher. In a world where a single disruption can ripple across global supply chains, businesses are rethinking how they spend, who they partner with, and how they can turn challenges into opportunities. And with marketplace services like Amazon Business, procurement teams are finding new ways to stay ahead of the curve.
Before procurement teams can tackle these challenges, they need visibility. Knowing what’s being spent, where, and with whom is critical to managing costs and mitigating risks. Yet, many businesses still struggle with fragmented data and outdated processes.
A new era for procurement
Digital procurement marketplace services are stepping in to fill this gap. These tools provide a centralised view of spending which enables businesses to identify inefficiencies and align purchasing decisions with broader goals, such as reducing carbon footprints or supporting local suppliers. Amazon Business, for example, offers procurement teams the ability to set parameters for spending, mandate preferred suppliers, which can help purchases align with ESG and CSR objectives.
This level of control doesn’t just help with compliance—it also enables better planning. With insights into purchasing patterns, procurement teams can anticipate demand, avoid stockouts, and even negotiate better deals. Artificial intelligence (AI) is playing an increasingly important role here, with 38 per cent of procurement leaders planning to use AI for demand forecasting and spend analysis in the next few years.
Supplier strategies
Beyond data, procurement teams are also rethinking their supplier strategies. The Amazon Business report highlights three key approaches: strengthening relationships with tier-one suppliers, diversifying the supply base, and moving supply chains closer to operating facilities. These strategies not only reduce risk but also create opportunities to align with ESG goals, such as promoting supplier diversity or supporting small and local businesses.
Take Tate Galleries, for example. With 1,500 employees spread across multiple locations, the organisation faced a lack of control over its purchasing. Employees were buying from different suppliers without a clear strategy, leading to inefficiencies and missed opportunities to save costs. By partnering with Amazon Business, Tate was able to centralise its procurement process, ensuring purchases aligned with company policies and reducing administrative burdens.
“It’s been beneficial in letting our teams know that they don’t need to spend days finding a supplier for a niche item,” says Declan McAlister, head of procurement at Tate Galleries. “They can simply do what they would as a regular customer and search Amazon Business. It’s helped us become more dynamic in our purchasing.”
Remaining relevant
The rise of ESG as a business priority is not just about compliance—it’s about staying relevant in a world where consumers, investors, and employees increasingly expect businesses to act responsibly. Procurement teams are at the forefront of this shift, tasked with ensuring that every dollar spent aligns with these values.
As businesses navigate this complex risk environment, one thing is clear: procurement is no longer just about cutting costs. It’s about building resilience, driving sustainability, and creating value across the supply chain.
To find out more about how Amazon Business could help you gain control over spending and reduce supply chain risk, visit https://business.amazon.co.uk/