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9 quiet but critical procurement areas not enough people are talking about

Ebit-News-2025

We’ve identified 9 quiet but critical areas of procurement that not enough people are talking about.

Procurement conversations in 2025 have been dominated by AI, ESG, and digital transformation, ignoring the foundations that need to be in place for these emerging trends to flourish. These themes are important, but they risk overshadowing the fundamentals that quietly determine whether procurement delivers strategic value.

For executives, overlooking these “quiet but critical” areas can mean missed opportunities, hidden costs, and reputational risk. We thought of nine areas that have been under-discussed this year

Poor Scoping and Requirements Definition: Procurement failures often begin before an RFI is released and a long time before any contract is signed. Inadequate scoping leads to change orders, delays, and hidden costs. While executives celebrate negotiated savings, the real value is lost when requirements are vague or misaligned. Strong upfront scoping with engaged and informed stakeholders ensures procurement delivers what the business actually needs, not just what was cheapest on paper.

Supplier Relationship Governance: Segmentation gets attention, but governance frameworks can be neglected. Clear escalation paths, dispute resolution mechanisms, and performance review cycles prevent small issues from escalating into costly disputes. Governance may not be glamorous, but it is the glue that holds supplier relationships together and ensures resilience under pressure.

Lifecycle Costing vs. Purchase Price; Procurement discussions frequently fixate on upfront savings. Yet the total cost of ownership—including maintenance, energy, compliance, and disposal—often dwarfs the initial purchase price. Lifecycle costing is under‑discussed but critical for long‑term profitability. Executives should demand metrics that reflect the full financial impact of procurement decisions.

Indirect Spend Discipline; Indirect categories—marketing services, office supplies, facilities management—rarely receive the same rigor as direct materials. Yet indirect spend can account for 20–40% of budgets, with significant leakage if unmanaged. Procurement leaders who bring discipline to indirect spend unlock savings and efficiency that competitors often overlook.

Contract Management Beyond Signing; Contracts are celebrated at signing, then forgotten. Without ongoing monitoring, compliance erodes, negotiated value disappears, and risk exposure grows. Effective contract management ensures that procurement delivers on promises long after the ink dries. For executives, this is about protecting value through disciplined execution

Supplier Diversity and Local Sourcing; ESG dominates headlines, but supplier diversity and local sourcing are less discussed. These strategies strengthen resilience, build community ties, and enhance brand reputation. Diversity isn’t just a compliance checkbox—it’s a source of innovation and agility. Local sourcing reduces risk exposure and aligns procurement with broader corporate purpose.

Data Quality in Procurement Systems: AI and analytics are trending, but their effectiveness depends on clean, structured data. Poor data hygiene undermines insights, creates misleading dashboards, and erodes executive confidence. Procurement leaders must invest in data governance before chasing advanced analytics. For C‑suite audiences, this is about ensuring decisions are based on truth, not noise.

Service Procurement Complexity; Goods procurement is often easier to benchmark than services. Consulting, IT, and facilities contracts are harder to measure, and as a result often negotiated without clear performance metrics. Service procurement is under‑discussed but represents a significant share of spend. Executives should demand transparency and benchmarking in service categories to avoid hidden inefficiencies.

Change Management in Procurement Transformation :Digital tools are adopted quickly, but cultural adoption lags. Procurement transformation fails without stakeholder buy‑in, training, and change management. Technology alone doesn’t deliver ROI—people do. Executives must champion change management as a core component of procurement transformation, ensuring tools are embedded into daily practice.

Why These Areas Matter

These nine areas may not trend on LinkedIn, but they quietly determine procurement’s success. They represent the difference between procurement as a tactical cost‑cutter and procurement as a strategic enabler.

Procurement in 2025 is often represented as being at a crossroads. The headlines focus on AI, ESG, and digital transformation. For C‑suite leaders, the challenge is to balance attention between the trending whilst giving enough attention to the fundamentals. We help companies realise the value in their supply base and evolve their capabilities to ensure that value can be delivered for the long term

Get in touch with us now and take the first step toward transforming your procurement expectations. 

Are you looking to drive value to your business? It may be to offset increasing costs elsewhere or to free up time and budget to focus on your strategic goals. If you recognise that improved procurement practices and performance can be a driver to this, we would love to talk with you, understand the challenges you face and the opportunities these bring to drive your business. Our average client ROI remains 5:1

We’re proud of the clients we work with and the projects we have completed. The savings and service improvements we have delivered have helped many companies add value to their bottom line. Our average ROI remains 5:1 across our client engagements. If you want to find out how we can make a difference to your business start the conversation.

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