Ivalua: How Procurement Leaders are Adapting to Disruption

Ivalua, a global leader in spend management, has released the results of a US-focused study from 100 Supply & Procurement decision makers in the US. 

It shows how these leaders are continuing to face mounting geopolitical disruption.

Resilient organisations refuse to retreat from innovation

Ivalua's survey shows that the most resilient organisations are refusing to retreat from innovation, instead adapting their strategies to strengthen it.

Organisations are grappling with mounting pressures. 91% expect disruptions from new trade policies and 85% say international instability is impacting decision-making.

Harnessing the power of AI allows businesses to not only survive but lead, and preparedness appears to go hand in hand with innovation, according to respondents:

• 98% with fully deployed AI tools say they feel prepared for geopolitical risk, and nearly half describe themselves as very prepared.
• Preparedness drops sharply to 21% among those still implementing AI.
• Only 11% of those merely considering AI implementation feel very prepared to deal with disruption.
• And 0% of companies with no AI plans say they are prepared to deal with disruption.

"The desire for AI adoption across organisations is strong, but geopolitical instability and rising costs are pressuring organisations to shift priorities," says Alex Saric, CMO of Ivalua.

"There's a real risk that near-term disruption becomes a long-term excuse to pause innovation. However, risk is a constant in global supply chains, and the real differentiator is how leaders respond.

"The most resilient organisations adapt their strategies without abandoning them, acting decisively to innovate and strategically to become stronger and more competitive."

AI dominates conversation but cost control takes priority

While AI dominates the conversation and the sector as a whole, with 77% of those respondents saying they are currently rolling out AI tools to aid with procurement and supplier management, only 36% see AI as the top supply chain priority today.

Many are currently focused on cost control and risk mitigation, with Ivalua believing that these efforts don't have to come at the expense of innovation. In fact, the two should go hand in hand:

• 73% of US company leaders agree they must invest more in technology to help identify and mitigate geopolitical risks.
• Yet, 65% of US businesses say that trade policy uncertainty is causing them to pause or decrease investment.
• 59% still cite innovation as a priority, indicating that leaders aren't abandoning transformation, but many are adjusting timelines under pressure.

Delivering tangible business benefits

As the shifts show, there is a tendency to respond to near-term threats with more of a defensive mindset. However, the data suggests that those who continue to innovate are translating this into tangible business benefits for the most advanced organisations.

Those businesses with mature AI strategies are handling geopolitical risks and cost pressures more efficiently than those without. While 78% of unprepared companies expect profit hits from rising costs – this reduces to only 50% for well-prepared companies which share this concern.

There is also a gap between C-suite and frontline managers, as while 67% of owners and 56% of C-level executives say their organisations are "very prepared," only 17% of senior managers and 10% of junior managers agree – highlighting the need for clearer execution and communication across teams.

Ivalua's findings suggest that innovation can be a powerful risk response.

Rather than putting transformation on pause, resilient organisations are leveraging it to close preparedness gaps, strengthen operations and build competitive advantage during uncertain times.