Hey Procurement Legends,
Earlier this month, I attended DPW NYC 2025. What an incredible event.
Here are some highlights that I think you’ll find helpful:
🔹 Adoption Trends
Interestingly, midmarket companies are achieving twice the success rate in AI adoption compared to larger enterprises. Procurement leaders are predominantly discovering AI solutions through conferences (39%), with email marketing proving less effective.
🔹 Implementation Challenges
Current software maturity remains a significant hurdle, with many procurement-specific AI solutions falling short of leader expectations. Key concerns include:
Limited ability to train agents and learn from responses
Memory and context management issues
Incomplete procurement orchestration with embedded AI
🔹 Success Strategies
Forward-thinking leaders recommend:
Starting with focused, high-impact AI implementations before scaling
Demanding more from software vendors through close collaboration
Adopting a one-month pilot model with clear KPIs before committing
Focusing on workflows and outputs rather than technologies
🔹 Measuring Impact
To demonstrate AI's value in procurement, organisations should obsessively track:
Time to value (expecting immediate impact)
Workflow penetration (automation breadth)
Productivity lift (time returned to the business)
🔹 Future Outlook
The procurement function itself appears to be undergoing a rebrand, with less emphasis on traditional spend management and negotiations. As organisations reimagine their procurement playbooks, concepts like circular supply chains are gaining prominence, potentially signalling a shift away from the term "procurement" altogether.
As one speaker noted, forward-looking organisations are becoming "builders and tinkerers" rather than buyers - perhaps a sign of procurement's evolution into a more strategic, innovation-driven function.
As healthcare costs soar, what can procurement really do to make a difference?
In his new LinkedIn newsletter “From a Procurement Perspective”, Lennart Eltzholtz — CEO of one of Europe’s largest healthcare group purchasing organizations and recent guest on my podcast — explores how rising Med-Tech costs, market consolidation, and industry trends are reshaping procurement strategy in hospitals. Even if you’re not in hospital purchasing, his insights offer a rare inside view of how procurement can actively influence the economics of care. A must-read for anyone watching the future of healthcare unfold.