H&Z CPO Outlook Q4/2025
Procurement sentiment has turned positive this quarter. The latest CPO Outlook shows what’s driving the rebound and where procurement leaders are focusing next.
Procurement sentiment rebounds into positive territory
- Latest European CPO Outlook Sentiment Indicator: 56.6
- Up from 51.2 last quarter (+5.4 points | approx. +10.5%)
After a prolonged period of declining confidence, procurement sentiment has moved decisively above neutral. The latest Pulse Check shows a clear improvement in how CPOs assess supply chain stability, marking a shift from stabilisation to renewed, though cautious, optimism.
The Outlook
Procurement sentiment rebounds, signalling greater stability into 2026
What’s driving this shift?
Several factors are contributing to the improvement in sentiment:
- Improved cost control, as inflationary pressure eases and organisations regain visibility across spend
- Greater supply chain transparency, supporting earlier risk identification and mitigation
- Stronger data foundations, enabling more confident decision-making
- Clearer internal ownership, particularly across procurement, IT and executive leadership
- More predictable trade conditions, reducing short-term volatility compared with prior quarters
Procurement priorities remain focused on fundamentals
Despite improving sentiment, procurement priorities remain disciplined and execution-led.
Where are CPOs focusing their procurement strategies?
Short term
- Cost control and productivity initiatives to protect margins
- Supply chain transparency to support risk monitoring
- Data quality improvements to strengthen decision-making
Mid term
- Supply chain resilience through diversification and dual-sourcing strategies
- Strategic supplier relationships to improve stability and performance
- Digitalisation in procurement, including AI-enabled tools to deliver efficiency at scale
Looking Forward
As sentiment improves, procurement leaders are shifting from crisis management towards controlled optimisation. While resilience and cost discipline remain dominant, improving confidence is allowing CPOs to selectively re-engage with digitalisation and capability-building initiatives.
The outlook suggests a measured transition, from stabilisation to structured progress, as organisations prepare procurement functions for 2026.
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Connect with our experts to discuss how the latest CPO Outlook impacts your procurement strategy and how to translate sentiment shifts into practical action.
