Procurement Pulse Check Q1/2024

ABOUT THE PULSE CHECK FROM THE PROCUREMENT INITIATIVE

In the latest Pulse Check from The Procurement Initiative, the aim is to gauge the current sentiment within the procurement and supply chain environment, focusing specifically on the role of AI in Procurement and the current state of play for the Chief Procurement Officer within organisations. Based on the pulse check survey and a CPO survey with 400-plus respondents, this report provides an overview of the current state of procurement and future trajectories.

KEY TAKEAWAYS:

The Lay of the Land:

• 62% of respondents have a rather positive to very positive outlook regarding the stability of supply chains in 2024.

• Sourcing priorities remain largely unchanged as cost remains key for decision-making in Procurement but sustainability gains momentum.

• As supply-side disruptions are expected to ease, respondents expect inflation to be at 2.4% (1st half 2024) and 1.5% (2nd half 2024).

On the Subject of AI:

• AI in Procurement: The top 3 AI application areas in Procurement include,Procure-to-pay, spend analytics and contract & risk management.

• AI application areas are vast – Procurement teams are implementing firstsolutions and capabilities in all areas.

• GenAI: 38% of respondents indicate daily use of GenAI, specifically largelanguage model (LLM) chatbots such as ChatGPT, Copilot or Gemini.On the State of Play for the Chief Procurement Officer

• CPOs are experiencing a higher interaction frequency with their top  management, demonstrating a high level of commitment.  

• CPOs should use their organisational visibility to educate their top  management about the potential and limitations of procurement.