Reflecting on 2024 and Looking Ahead to 2025: Procurement and Supply Chain

Reflection on 2024 predictions 

Many of the issues highlighted in 2024 remain firmly in place as we move into 2024. There is no sudden break point as we step into a new year, more of a continuation of the challenges that were apparent in 2024 still rumble forward into 2025, whether that be from a geopolitical landscape, inflationary / cost pressure from rising NI costs for UK businesses, resulting in increased prices for consumers which results in inflation at a point where we are looking to see inflation fall to hopefully lead to reduced interest rates or shortage of talent. Sadly there was no magic wand to wave to fix them on the 1st January.  

Looking into 2025 

• Wider geo-political tension issues remain – new government navigating challenging economic waters in the UK and we wait to see the impact of Trumps 2nd Presidency and the impact on tariffs and global trade.
• With costs increasing on several fronts, supply chain resilience and supplier risk will remain high on the agenda for procurement leaders throughout 2025. 
• Procurement functions still getting to grips with AI, automation and sustainability regulation and commitments. 
• Ongoing shift in the narrative around value creation versus traditional cost savings focused activity. 
• The broader public sector and those organisations selling into the public sector will have to adjust to the new, delayed 2023 Procurement Act which finally comes into effect on the 24th February with the Government Commercial Function stating that this will “create a simpler, more flexible and effective approach to procurement”. 
• Skills shortage of progressive commercially astute procurement professionals to deliver on all the above remains firmly in place. 

For more information, please contact Richard Guest.