3 Reasons Now Is the Golden Age of B2B Procurement

Digital transformation’s impact is typically specific to each sector, company or workflow.

But no matter how granular and varied the effect, embracing innovation can help businesses turn formerly tactical processes into strategic elements of organizational growth.

This is especially true within procurement. Traditionally seen as a cost-control function focused on minimizing expenses, procurement is now being positioned as an enabler of broader organizational goals.

Amazon Business found in the “2025 State of Procurement Data” report that organizations are using procurement as a strategic lever to drive growth and sustainability. Today’s procurement teams find themselves with a seat at the table, shaping not just how companies buy, but also how they innovate.

“Procurement is no longer a back-office function — it’s a key competitive advantage, allowing companies to reduce costs, increase operational efficiencies and fuel growth initiatives,” Amazon Business Vice President Shelley Salomon said in the report.

The shift comes as organizations face a dynamic and often volatile global economy. Procurement teams are now tasked with three key responsibilities: enabling agility, ensuring supply chain resilience and contributing to long-term value creation.

Read also: Digital B2B Marketplaces Are Cutting Out Middlemen While Reshaping Procurement

Ongoing uncertainty continues to shape the procurement landscape. Global supply chains have become increasingly intricate, driven by factors such as geopolitical tensions, fluctuating market demands and environmental concerns. The PYMNTS Intelligence report “How the C-Suite Fights Uncertainty With New Workflows and Analytics Tools” found that high levels of uncertainty impacted operations and decision-making for 3 in 10 middle-market firms throughout 2024 — with the finance, food and transportation sectors more likely to face volatile conditions than others.

To address these complexities, procurement teams are doubling down on diversifying supplier bases and enhancing visibility through digital tools. Technologies like blockchain and predictive analytics are being deployed to create more transparent and resilient supply chains.

Artificial intelligence in particular is at the forefront of procurement transformation. AI-driven tools are enabling procurement teams to derive actionable insights from vast amounts of data, improve decision-making, and drive efficiencies.

“To truly unlock the power of AI, especially in a B2B world, you really need to have tremendous amounts of real-world business data to train the AI,” Rajiv Ramachandran, senior vice president of product strategy and management at Coupa, told PYMNTS in an interview published in November.

However, the integration of such technologies can remain a work in progress, with many organizations citing challenges in aligning AI capabilities with existing systems and workflows.

See also: Data Quality: The Unsung Hero of AI-Powered B2B Procurement

As PYMNTS CEO Karen Webster has written, one of the biggest benefits of AI is the time it gives back to its users. Enterprise spending on generative AI increased sixfold in 2024 to nearly $14 billion as businesses began implementing the technology after first experimenting with it.

Advanced analytics and AI-powered platforms are helping procurement teams move from reactive to proactive decision-making. For example, predictive analytics allows for anticipating supply chain disruptions before they occur and enables businesses to work closely and proactively with their suppliers, ultimately gaining better insights into risks, fostering innovation and driving mutual growth.

Procurement’s insights into market trends, supplier dynamics and cost structures provide a unique perspective that can inform broader business strategies.

The future of procurement is about much more than cost savings. It’s about creating value, driving innovation and contributing to the overall success of the organization.

Still, the PYMNTS Intelligence report “GenAI at Retail: New Technology Upgrades for Inventory and Demand Forecasting” found that 34% of supply chain executives within retail use manual inventory management, and 45% reported that lack of real-time visibility is their primary barrier to effective inventory coordination.

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