The year 2024 brought its share of disruptions and milestones in supply chain and procurement, with some of the most controversial and disruptive changes forcing businesses to rethink their strategies. From regulatory shifts and talent shortages to rapid technological disruption, procurement professionals faced mounting pressure to adapt quickly. Below, we break down the top challenges from 2024 and key lessons procurement leaders can carry into 2025.
1. Regulatory Changes Added Complexity to Procurement
One of the most pressing challenges this year was navigating regulatory changes, particularly in the UK and European Union. The Procurement Act 2023 in the UK, set to take effect in 2024, created significant debate. While it aimed to simplify procurement processes, procurement teams had to rapidly adapt to new transparency requirements and sustainability considerations.
Similarly, new EU directives focusing on ESG (Environmental, Social, Governance) reporting forced organisations to align procurement processes with stricter sustainability standards. Non-compliance wasn’t just costly but also damaging to brand reputations.
Companies must take a proactive approach to monitoring and implementing regulatory changes. Procurement leaders should collaborate closely with compliance teams to build agile systems that anticipate changes rather than react to them.
2. Talent Shortages Exposed Skills Gaps
While demand for procurement and supply chain roles surged, organisations faced significant skills shortages across key areas like data analytics, sustainability, and supplier relationship management. According to CIPS, “green skills” became a major focus, yet many procurement professionals lacked the expertise to drive circular and sustainable procurement practices.
Companies that invested in upskilling and leadership development were better equipped to bridge this talent gap. For instance, multinational retailers introduced targeted training programmes to prepare their teams for the demands of sustainable procurement.
To overcome talent shortages, organisations need to focus on skills development through certifications like CIPS, strategic training programmes, and the integration of digital tools to empower existing teams.
3. Disruptions in Global Trade Created Uncertainty
Geopolitical conflicts and supply chain disruptions—particularly in regions like the Middle East and Eastern Europe—had a cascading effect on global procurement. The ongoing war in Palestine and escalating tensions in the South China Sea caused rerouting of trade lines, increasing shipping costs and delivery delays.
Businesses that diversified their supplier base and invested in real-time visibility tools weathered these disruptions far better than others.
Building supply chain resilience remains a top priority. Procurement leaders must focus on supplier diversification, nearshoring options, and investing in technology for predictive risk management.
4. Technological Disruption Changed the Procurement Landscape
AI-driven tools, blockchain, and automation continued to revolutionise procurement in 2024, but adoption was not without its challenges. Companies that failed to invest in modern procurement technologies found themselves lagging behind. Tools like Coupa and Jaggaer became industry standards, helping businesses optimise costs and streamline workflows.
However, rapid tech implementation also brought risks, such as data privacy concerns and cyberattacks on procurement systems.
Companies must balance technological adoption with robust security measures. Procurement teams should prioritise solutions that offer tangible ROI, improve visibility, and integrate seamlessly into existing processes.
5. Sustainability Goals Exposed Supply Chain Weaknesses
Meeting ambitious sustainability targets remained one of the most significant hurdles for businesses in 2024. Organisations were under increasing pressure to adopt greener procurement strategies, with stakeholders and consumers demanding transparency. Large corporations like Unilever and IKEA led the way, implementing circular supply chain initiatives and reducing their carbon footprints.
On the flip side, companies that failed to address sustainability faced reputational damage and regulatory penalties.
Sustainability must be embedded into procurement strategies. Procurement professionals should focus on sourcing responsibly, exploring circular economy models, and adopting technologies that enhance supply chain visibility.
Looking Ahead: Preparing for 2025
The challenges of 2024 highlight the need for procurement leaders to remain agile, forward-thinking, and innovative. Companies that excelled this year were those that combined resilience, digital transformation, and talent development to tackle disruptions head-on.
As we head into 2025, procurement professionals must take these lessons to heart:
Prioritise adaptability to regulatory changes.
Invest in skills development and leadership training.
Build supply chain resilience through diversification and visibility tools.
Embrace AI and automation while mitigating risks.
Embed sustainability as a core procurement goal.
By turning the challenges of 2024 into actionable strategies, procurement teams can position themselves as key drivers of business success in the years to come.