**London**: As 2024 concludes, SAP executives outline major shifts anticipated in procurement and supply chain management for 2025, emphasising AI integration, process orchestration, and leadership changes, while aiming to enhance resilience and focus on sustainability amidst evolving challenges and opportunities.
As 2024 draws to a close, the realm of procurement, external workforce management, business networks, and travel and expense management is witnessing significant transformations. Marked by factors such as economic unease, supply chain disturbances, and an increasing emphasis on sustainability, businesses have demonstrated a noteworthy capacity for resilience and adaptability throughout the year.
Looking towards 2025, several key trends are expected to redefine the landscape, offering both challenges and opportunities for progressive organisations. In an effort to glean insights into upcoming developments, executives from Intelligent Spend and Business Network at SAP have shared their predictions.
One of the most pivotal shifts anticipated is the integration of artificial intelligence (AI) into procurement strategies. Etosha Thurman, chief marketing officer for Intelligent Spend and Business Network at SAP, forecasts a future where AI and cloud solutions become integral to data-driven decision-making within procurement. “In 2025, AI and cloud-based solutions will position procurement at the heart of data-driven decision-making, enabling real-time insights and freeing teams to focus on high-impact initiatives,” she stated. This perspective suggests a paradigm where procurement is not merely a support function but evolves into a strategic driver of business value, facilitating goals ranging from supply security to sustainability.
Concurrently, the importance of process orchestration is gaining traction. Manoj Swaminathan, president and chief product officer for Intelligent Spend and Business Network at SAP, noted the challenges organisations face due to a fragmented technology landscape. “Many companies now employ multiple systems to meet their end-to-end business needs, leading to siloed processes and confused employees,” he highlighted. To remedy this, a shift is underway toward a more unified process orchestration approach, exemplified by innovations like SAP Ariba Intake Management. This centralised solution aims to streamline procurement inquiries, improve efficiency, and promote compliance.
The procurement leadership landscape is also poised for change, as a new generation of leaders is expected to emerge in 2025. Jeff Collier, chief revenue officer for Intelligent Spend and Business Network at SAP, observed, “A shift will occur in the procurement landscape as a wave of fresh faces step into the chief procurement officer role.” He noted that this comes at a time when the requirements of the industry are evolving, highlighting the necessity for organisations to nurture talent and attract skilled professionals who are adept in sustainability and AI integration.
AI’s role in optimising business networks is another critical focus area. Val Blatt, chief revenue officer for SAP Business Network, explained that AI is already enhancing process efficiency and information sharing across companies within supply chains. “As we move into 2025 and beyond, we’ll see AI do more to synthesise intelligence and efficiency across areas like risk, demand, and inventory planning,” she said. This indicates a movement toward integrating AI capabilities that facilitate predictive analytics and decision-making across organisational boundaries, ultimately strengthening supply chains.
Moreover, the landscape of travel and expense management is expected to innovate with the incorporation of AI-driven solutions. Christopher Juneau, SVP and head of SAP Concur Product Marketing, expressed insights about how finance teams and travel managers would begin re-evaluating their T&E policies in response to evolving AI technologies. He highlighted questions surrounding the necessity of managerial approval for expense reports and the potential for enhanced automation to streamline processes.
Investments in technology innovation and security infrastructure will remain paramount as businesses strive to balance the dual imperatives of rapid advancement and risk management.
In summary, as the industry stands at the threshold of transformative change in spend management and supply chains, the trends identified by SAP’s leaders indicate a promising yet complex future. The integration of AI, the push for sustainability, and the dynamics of interconnected business ecosystems will all contribute to a redefined operational framework for organisations moving into 2025 and beyond. SAP’s active engagement in shaping these trends suggests a forward-thinking approach to navigating the complexities of tomorrow’s business environment.
Source: Noah Wire Services
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