6 Procurement Strategy Best Practices to Drive Business Value in 2025

07 Jul 2025

In 2025, procurement continues to evolve from its traditional focus on cost savings toward a broader strategic role essential for business growth, resilience, and innovation. As procurement becomes increasingly strategic, here are six best practices to ensure your strategies deliver measurable business value.



  1. 1.Strategic Alignment with Corporate Goals

Procurement leaders must ensure that their strategies are closely aligned with corporate objectives. Companies performing in the top quartile of procurement maturity align their strategies directly with business KPIs such as revenue growth, sustainability metrics, and market expansion goals. A recent McKinsey report (July 2024) highlights that these companies achieve EBITDA margins at least five percentage points higher than their peers

  1. 2.Prioritize Supplier Collaboration

Building strategic supplier relationships has become crucial. When organizations treat suppliers as partners—not, not just vendors—they unlock opportunities for co-innovation, improved quality, and speed-to-market advantages. Bain & Company (2024) reports that leading companies leveraging supplier collaboration realize up to 12% additional savings compared to traditional procurement models.

  1. 3.Leverage Digital and Analytics Capabilities

Advanced analytics and digital procurement platforms have transitioned from optional tools to essential capabilities. According to McKinsey's March 2024 insights, organizations that invest in scalable digital procurement tools and data governance see more responsive decision-making and better spend visibility, enabling faster adaptation to market changes.

  1. 4.Embed Sustainability into Category Strategies

Sustainability is no longer a compliance exercise—it’s a strategic imperative. Embedding environmental, social, and governance (ESG) goals into procurement helps mitigate long-term risks and contributes to brand value. Forward-thinking procurement teams are integrating carbon tracking, supplier diversity, and circular sourcing into their category playbooks.

  1. 5.Enhance Risk and Resilience Planning

Risk management and supply chain resilience are now integral to procurement strategy. Scenario planning, dual sourcing, and early warning systems are standard elements for managing disruption—practices proven to reduce downtime and protect operational continuity across industries.

  1. 6.Develop Strategic Procurement Talent

The human factor remains critical. As procurement expands its influence, the need for talent with commercial acumen, cross-functional leadership skills, and digital fluency grows. Deloitte’s 2025 Global CPO Survey found that 96% of top-performing procurement functions met or exceeded their cost savings goals, versus 80% of followers. They also achieved 84% internal stakeholder satisfaction, compared to 59% in less mature organizations.


Conclusion

Focusing on these six best practices provides a clear roadmap for procurement leaders aiming to deliver tangible business value in 2025. Strategic alignment, supplier partnerships, digital enablement, sustainability integration, resilient risk management, and talent development collectively enable procurement functions to move beyond operations and become true strategic growth drivers.