Procurement Automation Meets Trade Turbulence: How to Stay Agile in 2025
Procurement Isn't Just Changing—It's Being Rewritten
Let’s be real: 2025 isn’t exactly a chill year for global trade. Tariffs are changing faster than your favorite streaming service updates its terms and conditions. One minute you're safe, the next you're slapped with 25% duties. It's tempting to freak out or overhaul everything—but let’s slow down.
First, A Quick Recap on Procurement Automation
According to Bain, by 2027, your 9-hour procurement grind could shrink to just 1 hour. Why? Because automation is sweeping through:
Vendor Screening: down 80%
RFP Creation: down 90%
Contracting: down 90%
Price Benchmarking: down 80%
AI and smart workflows are handling the grunt work, so you can focus on what actually matters—strategy, innovation, supplier engagement.
And brands are already onboard.
"Our category managers spend less time chasing suppliers and more time shaping value-based partnerships. It’s a game changer," says Mark Jenkins, Senior Director of Procurement at Target.
Now combine this with… tariff whiplash.
Automation Alone Isn't Enough—You Need Flexibility
We’re in a volatile period where tariffs are shifting like traffic lights—red, green, yellow—and it’s tempting to make drastic moves: fire the team, sell the business, or even walk away. But now’s not the time to walk through one-way doors. Take a breath, think through your options, and give yourself the flexibility to pivot when needed.
So What Can You Actually Do?
1. Find a Second Source
Don’t ghost China, but don’t put all your eggs there either. Look to Mexico, Southeast Asia, or even Canada as backup plans. Companies like Crocs are already doing this by opening new plants in Vietnam to mitigate risk and diversify.
2. Leverage Optionality
If your goods are coming from China, consider staging inventory in Canada, Morocco, or the Dominican Republic. That way, if tariffs hit, you’ve got faster, cheaper options to reroute.
"We positioned buffer inventory in Northern Mexico and it saved us during the last trade round. No delays, no drama," said Lily Hu, Global Sourcing Lead at Patagonia.
3. Negotiate Continuity
Lock in pricing. If you’ve got a good supplier, see if you can commit in bulk now to hedge against instability. Procurement automation tools like Arkestro and Keelvar can help identify pricing windows and negotiation timing.
"Using AI tools, we could see price volatility before it hit. That meant faster decisions and stronger supplier relationships," noted Simon Delmas, Procurement Manager at Decathlon.
Takeaways
Procurement automation will free up your time—but that time needs to be used wisely.
With tariff chaos in the mix, agility matters more than ever.
Diversification, smarter sourcing strategies, and inventory flexibility are your real weapons right now.
Let's Chat:
What’s your strategy for staying flexible with tariffs and global sourcing? Have you automated any parts of your procurement process recently? Share your stories, wins, or headaches in the comments—we’d love to learn from you.
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