Navigating Supply Chain Disruption with Procurement Strategy

Procurement professionals are facing unprecedented complexity as global supply chains continue to evolve amid geopolitical instability and market volatility.

According to the 11th Annual State of Manufacturing & Supply Chain Report from Fictiv and MISUMI Group, the traditional approach to supplier management and sourcing is being fundamentally reshaped, with procurement teams at the centre of this transformation.

The findings, based on responses from 300 senior supply chain and manufacturing leaders at director level or higher, reveal that procurement functions are being forced to adapt their strategies to manage increasing demands while building operational resilience.

The research explores how procurement teams are responding to market shifts driven by geopolitical instability, climate change and economic pressures. Major events including war, trade rerouting, tariffs, extreme weather and inflation have forced procurement professionals to rethink their approach to supplier relationships and sourcing strategies.

"Global manufacturing has entered a new phase where quality, compliance and transparency are non-negotiable," says Ryusei Ono, Representative Director and President at MISUMI.

"This research reflects what we see across our customer base: a growing expectation for consistent performance at scale amid increasing regional, regulatory and technological complexity."

Procurement's productivity challenge

One of the most significant findings involves the time spent on administrative workflows. According to the report, 83% of engineers spend four hours or more every week on procurement-related workflows, highlighting a considerable opportunity for efficiency gains.

Alongside this, 93% of leaders say productivity improves when administrative tasks are offloaded, suggesting these processes have a substantial impact on workforce operations. Manufacturing planning was cited as the main challenge for balancing cost, quality and time-to-market, followed by production, sourcing, design and demand forecasting.

All sustainability, net zero and sustainable procurement leaders should attend:

• Procurement & Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
  
  
• Procurement & Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22
  

Co-located with Sustainability LIVE, these events brings together CPOs, CSCO, CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

AI and automation reshape procurement

Procurement teams are increasingly turning to AI and automation to manage complexity. According to the report, 97% of respondents say AI is already embedded across core manufacturing and supply chain workflows, with many leaders anticipating AI-driven productivity gains exceeding 50% as workflows are redesigned around automation.

"97% of leaders are saying AI is already embedded in core workflows," comments Nate Evans, Co-Founder & Head of Climate/AI at Fictiv.

Supplier management grows more complex

The challenges facing procurement teams extend beyond internal processes. The report reveals that 81% of leaders believe supplier sourcing and management is too time-consuming and costly, representing an increase from 73% previously.

"Sourcing is becoming more complex across the entire supply chain lifecycle, especially for custom and standard mechanical components," explains Dave Evans, President & CEO at MISUMI Americas.

Procurement leaders are now prioritising quality management (59%), supply chain design support (54%) and DFM, costing and engineering services (53%). There has been a notable shift towards reliance on digital platforms, with 97% of leaders recently recognising these tools as essential for reducing complexity, compared to 86% previously.

External pressures are also reshaping procurement strategy. According to the research, 71% of respondents report that geopolitical tensions are impacting long-term supply chain strategy, an increase from 51% previously. Moreover, 98% say they are experiencing material cost pressures due to raw materials volatility.

These pressures have led to significant changes in procurement strategy, with many teams pursuing onshoring and nearshoring to build regional resilience. Currently, 73% of respondents say implementing sustainable practices is very important to their company, with 96% of businesses saying sustainability is part of sourcing decisions.