Procurement transformed: The engine of strategic business value
- 10 Jun 2026
- 2 min read
Procurement stands at a turning point: while its strategic role expanded during recent crises, it is once again judged primarily on cost savings. Yet expectations continue to grow, and teams must also manage risk, strengthen supply chain resilience, drive digital transformation, and adopt AI.
The “do more with less” reality is eroding executive confidence and alignment with business strategy. AI is central but unevenly implemented, delivering limited gains so far and supporting rather than replacing human decision-making.
Ultimately, procurement must prove broader value beyond cost control to remain influential in an increasingly complex, volatile, and technology-driven business environment.
Find out more about key highlights from the Economist Enterprise report Procurement at a crossroads: From optimism to realism drawing on a global survey of 2,600+ C-suite executives, with the contribution of Schneider Electric.
- 54%
of executives identify cost savings as the primary value of procurement
- 60%
of leaders rank digital transformation as a top short‑term procurement priority
- 46%
of executives reporting AI support for tactical decisions, with humans retaining strategic control
"Procurement plays a vital bridging role across the organization. To be effective, a CPO needs to speak the language of R&D when engaging on innovation, understand profit-and-loss discussions with business owners, and be equally comfortable in conversations around finance, quality and resilience."
Ard Verboon - Chief Procurement Officer, Schneider Electric
Cost is still critical but now linked to resilience
Cost control has decisively re-emerged as procurement’s primary mandate: 54% of executives now identify cost savings as its main value (up from 43% in 2025 and 36% in 2023). This shift is structurally driven by inflation, tariff volatility, and the rising cost of supply-chain resilience. Yet, procurement is expected to reduce cost while simultaneously delivering resilience, risk mitigation, and strategic value, often without additional resources.
Procurement is expanding its role to deliver strategic value across organizations
Procurement leaders must show their value to the organization by doing more than saving money. Teams are increasingly expected to manage risk, strengthen resilience and drive transformation initiatives – with digital transformation now the top strategic priority for around 60% of executives. The function remains a key source of organizational intelligence, supporting decision-making at senior levels despite declining confidence in its overall effectiveness.
AI is high on the agenda but scaling impact remains a challenge
AI dominates the agenda, with 60% of executives naming digital transformation as the top priority and 56% citing AI adoption as its main driver. However, execution is uneven: 32% report unclear ROI as the top barrier, and 56% say AI has not improved decision-making. While AI delivers gains in automation, with around 80% reporting improvements, it has yet to unlock its promised strategic impact.
Human intelligence sits at the heart of AI-driven procurement
Despite enthusiasm for agentic AI, autonomy remains limited. Only 9% of executives want AI to lead most decisions within three years, while 46% expect AI to support only tactical activities. Procurement’s highest value – strategic supplier relationships and innovation – still depends on human expertise, highlighting a durable hybrid model where AI augments but does not replace human judgment.
In the Economist Enterprise report Procurement at a crossroads: From optimism to realism, get full insights on how procurement is changing, what it means for your organization, and how leaders in the function are responding to compounding pressures in a context of persistent tests of geopolitical risk, supply-chain reconfiguration and demand for greater resilience.
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