Why procurement trends should matter to bidding professionals

Procurement Trends
Written by David Lunn MCIPS, CP APMP

At BidWrite, we’ve helped clients win work through the competitive sourcing process for more than 16 years.  During this time, we’ve long argued that it’s important for bidding professionals to keep a close eye on contemporary procurement trends. Why? Because these form the context into which you will be bidding, helping you shape an approach that aligns with the broader procurement agenda.     

To maintain visibility over what’s happening on ‘the other side of the bidding fence’, I regularly attend procurement events and keep up to date with a range of key procurement publications. Having digested several 2025 procurement reports including the Kearney CPO Agenda, and coupling this with what our team sees on the job daily, here are five procurement trends you can expect to see more of as the year unfolds further.

Five procurement trends to expect in 2025:

1. The rise, and rise of technology
   Large buying organisations will continue to streamline procurement operations through the ongoing automation of manual tasks. Nothing new here. But we’re likely to see an uptake of ‘smart’ AI-based solutions that can analyse large data sets to assist with forecasting, and at this stage lower-level decision making. We also expect 2025 to be a pivotal year in which organisations decide how to integrate AI into their ‘business as usual’ activities, whether that be on a make or buy basis.

2. Continued focus on cost reduction
   As major guardians of company spend, procurement teams will continue to seek opportunities to better forecast, manage and reduce costs. For product-based organisations, inventory levels will be optimised using more advanced and dynamic analytics. Procurement teams will also seek to simplify production and reduce costs through influencing design and material decisions. Supplier payment terms will be fiercely negotiated, while procure to pay processes will continue to deliver better cash-flow management and liquidity. We may also see a requirement for procurement budgets to be developed from a zero base to test and/or re-set budget fundamentals.
   Much of this cost reduction focus will be supported by the rapid and ongoing technology developments noted in trend #1 above.

3. Building an efficient and resilient local supply base
   The Covid pandemic exposed the risks of being reliant on complex global supply chains. Since then, we’ve seen (and will continue to see) a focus on reducing supply chain risks through strategies including near-shoring/local supply. However, it’s acknowledged that this will require a longer-term view that’s reliant on partnership-based approaches. These partnerships will stem from procurement teams’ dealings with their internal customer(s) as well as their external commercial relationships with contractors and suppliers. We are already seeing signs of buyers creating capability development programs designed to improve local supplier flexibility, responsiveness and conformity. Earlier and more collaborative activity with suppliers will also deliver cost optimisations and uncover innovative local supply solutions.

4. Sustainability becoming mainstream
   With sustainability reporting mandatory for larger Australian organisations since 1 January 2025, we will see more flow on effects during the year. Affected organisations will manage legal and reputational risks more tightly, while also demanding more of their supply chain in this regard. Although sustainability reporting has an environmental focus, some organisations may also bundle social and governance initiatives into the mix to progress their wider ESG agenda. Whichever approach is taken, ESG is no longer a future concern. It’s here now.

5. Hiring for the future
   It almost goes without saying that hiring decisions will be made to support the above procurement trends and priorities. Although more traditional procurement skills will remain in demand, technology embedment increases the need for tech-savvy procurement professionals. Strategic expertise in ESG implementation and monitoring will also be particularly sought after, as will the ability to build robust supplier partnerships.

Understanding assists positioning

At BidWrite, one of our fundamental principles is the importance of client-centricity. In bidding, this means developing submissions that place your buyer’s objectives firmly at the centre of your offer. But if that’s all you do, you’re going in undercooked. Understanding your buyer’s ‘why’ is equally important as it provides you with a broader framework to align your response to.

Buying organisations know where they’re heading, so if you can understand the procurement trends that matter to them and help accelerate that journey, your tender submission will be considered more favourably. 

So what’s a bidder to do?

If you’re wondering how these trends can inform your future tender responses, our next piece will look at the supplier side of the equation, explaining what these procurement trends mean for suppliers of goods and services, and how bidders can capitalise on them to develop truly client-centric tender responses.

Keep an eye out for this on the BidWrite website and subscribe to our Bid Talk mailing list, or follow our BidWrite LinkedIn page