Amazon Business’ State of Procurement Report Reveals Key Procurement Strategies for 2024: Increasing Budgets and Investments in Tech

Rhea-AI Summary

Amazon Business (NASDAQ: AMZN) released its 2024 State of Procurement Report, revealing that over half of procurement teams expect budget increases in 2024. The report highlights a focus on investing in new technologies, including artificial intelligence, to improve efficiency and strategic capabilities. It also emphasizes the challenges and priorities of procurement across various industries and global markets.

Positive

• Over 50% of respondents expect budget increases in 2024, indicating a positive outlook for procurement spending.
• 98% of respondents plan to invest in analytics, insights tools, automation, and artificial intelligence, showing a strong interest in new technologies to optimize procurement processes.
• The report highlights the strategic importance of procurement and the impact it can have on overall company success, indicating a growing recognition of the value of efficient procurement processes.

Negative

• None.

Third annual report reveals that procurement leaders are keen to invest in new technologies, including artificial intelligence, to improve efficiency and strategic capabilities, and also expect to increase their spending

SEATTLE--(BUSINESS WIRE)-- Amazon Business (NASDAQ: AMZN) today released its 2024 State of Procurement Report, revealing that a majority of procurement teams expect their budgets to rise next year, and many leaders are evaluating how they can further invest in tools and technologies to deliver optimization and a more strategic approach to business buying. The report highlights business-to-business (B2B) trends and global insights around procurement needs, priorities, and challenges. It features insights from government, financial services, hospitality and food service, health care services, manufacturing, medical and pharma, retail, technology, and telecom industries, and includes insights from buyers in France, Germany, Italy, Japan, Spain, UK, and U.S.

Amazon Business' 2024 State of Procurement Report (Graphic: Business Wire)

The report shows that more than half (53%) of respondents expect their budgets to increase in 2024. Following a year of focusing on reducing costs, procurement leaders are now planning to use the funds they saved to invest in approaches to optimize their procurement processes and allow them to operate more strategically, with the efficiency and complexity of procurement listed as the top challenge they’re currently facing. Among respondents, 98% said they were planning investments in analytics and insights tools, automation, and artificial intelligence (AI) over the next few years.

“We are entering a new era of smart business buying where senior leaders are understanding the impact procurement can have on efficiency and overall company success,” said Alexandre Gagnon, vice president of Amazon Business Worldwide. “At Amazon Business, we develop scalable solutions for customers and solve their biggest procurement challenges, and I couldn’t be more excited about the evolution of procurement. Heading into 2024, the procurement function is now cross-disciplinary, spanning both functional and strategic purviews as buyers are planning to invest more in technology and optimization while future-proofing their companies and organizations. Ultimately, procurement not only keeps operations running, but plays an integral role in achieving key organizational goals, and with smart business buying, companies have procurement solutions to serve as a growth lever for organizations.”

As procurement expands within companies and organizations, leaders are being forced to find ways to optimize their processes so that they can allocate more time and resources to addressing strategic challenges. The report also found that:

• 95% of decision-makers acknowledge that there’s room for procurement optimization.
• 85% of respondents say the difficulty of sourcing suppliers that follow sustainable practices prevents their company from setting or achieving strategic sustainability goals for procurement.
• 81% of respondents had mandates to buy from certified sellers, which might include sustainable, local, or disadvantaged group-owned businesses. Among those without mandates, 40% still consider supplier environmental, social, and governance (ESG) factors. Despite the desire for responsible purchasing (85%), difficulty finding sustainable suppliers hinders sustainability goals.

Amazon Business is dedicated to equipping its 6 million and growing business customers, ranging from large multinational enterprises to sole proprietors, with smart business buying tools that can help reshape organizational processes, fortify procurement efforts, and ultimately, ensure procurement is better prepared for the unpredictable. Through a variety of the services Amazon Business offers, such as analytics and Guided Buying, organizations of all sizes can reduce costs and improve their efficiencies to meet key organizational goals. In addition, Amazon Business simplifies the process of finding and purchasing products with sustainability certifications by partnering with trusted third-party certifications, including Carbon Neutral Certified by SCS Global Services, Bluesign, Blue Angel, and BIFMA LEVEL.

Download the 2024 State of Procurement Report [here].

Amazon Business’ 2024 State of Procurement Report Methodology

The 2024 Global State of Procurement Report was fielded online from June 6 to July 14 among 3,108 procurement decision-makers and senior leaders familiar with procurement operations at their organization. Respondents were located in France, Germany, Italy, Japan, Spain, UK, and U.S. Respondents spanned nine industries and all commercial sector respondents worked at organizations with a minimum revenue threshold set by geographical region.

The study was designed to explore procurement challenges, priorities, and needs; key attributes and assessments of suppliers; procurement trends related to ESG and technology; and differences between industry or country segments. Quotes included in the report were sourced through thought-leadership interviews conducted with five executives responsible for procurement who are based in the U.S. and UK, and span a range of industries—as well as directly from Amazon Business executives.

About Amazon Business

Amazon Business helps millions of customers worldwide—from small businesses, schools, hospitals, nonprofits, and government agencies to large enterprises with global operations—reshape their procurement with cost and time savings, greater productivity, and insightful purchasing analytics. Procurement and business leaders enjoy convenient shipping options on hundreds of millions of supplies across categories like office, IT, janitorial, food service, and professional medical supplies. Customers also have access to a variety of business-tailored features and benefits, including a curated site experience, Business Prime, business-only pricing and selection, single- or multi-user business accounts, approvals workflow, purchasing system integrations, payment solutions, tax exemptions, and dedicated customer support. Amazon Business is currently available in the United States, Canada, the United Kingdom, Germany, France, Italy, Spain, Japan, and India. For more information, visit business.amazon.com, www.amazonbusinessblog.com, and @AmazonBusiness.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231114234616/en/

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FAQ

What is the focus of Amazon Business' 2024 State of Procurement Report?

The report focuses on the intention of procurement teams to invest in new technologies, including artificial intelligence, to improve efficiency and strategic capabilities.

What percentage of respondents expect budget increases in 2024?

Over 50% of respondents expect budget increases in 2024, indicating a positive outlook for procurement spending.

What are the top planned investments by respondents according to the report?

98% of respondents plan to invest in analytics, insights tools, automation, and artificial intelligence, showing a strong interest in new technologies to optimize procurement processes.

Who provided insights for the report?

Insights were provided by buyers in various industries and countries, including government, financial services, hospitality, healthcare, manufacturing, retail, technology, and telecom industries, and buyers in France, Germany, Italy, Japan, Spain, UK, and U.S.