4 priorities procurement leaders are focusing on right now

As Chief Customer Officer at Zip, I have the privilege of speaking with procurement and finance leaders from a wide range of industries every week, sometimes dozens each month. 

These executive check-ins are designed to help our customers maximize the value they get from Zip, but they also offer a front-row seat to the trends and challenges these leaders are navigating in an era of economic uncertainty.

One recent common theme, in reaction to global economic shifts, is a heightened focus on building procurement resiliency - and technology is paving new and better paths to achieve this.

These leaders are increasingly leveraging AI technology and automation to boost efficiency, control costs, and strengthen procurement processes, ultimately building greater resilience to weather economic fluctuations.

Based on some of my recent conversations, I’d like to share four key priorities that procurement and finance leaders are focusing on right now.

1. Leveraging AI for efficiency: doing more with less

Alongside today’s economic volatility, many procurement leaders are being asked to do more with fewer resources. This—plus the increasing availability of incredible new AI features in procurement—has made AI an essential part of their strategy. These leaders are deeply interested in AI’s capabilities, where it applies in the Procurement ecosystem, and how it can drive efficiency.

Some companies like Duolingo, SeatGeek, and Gong have made news for using AI to streamline operations and reduce manual workload, making AI a core and even mandatory tool across critical functions. And the same is true in procurement—or at least this transformation is beginning.

AI-driven feature sets enable procurement teams to automate routine and increasingly complex tasks, optimize spend analysis, and even intelligent predictions about risk, all while freeing up human resources for more strategic initiatives. This is becoming more and more important in order to amplify team impact and thrive in the face of economic headwinds.

Check out this recent Harvard Business Review report to go in depth on how procurement is evolving today.

2. Embracing automation amid workforce reductions

Another major trend being discussed is a broader push for automation. As budget constraints become more common, companies are looking for ways to maintain operational continuity without increasing headcount. Organizations like Canva and Flexport are doubling down on automation to keep processes moving smoothly despite smaller teams.

Procurement leaders are increasing automation in their processes by leveraging procurement orchestration tools to connect distributed systems, increase transparency into spend, and execute routine, rule-based tasks at scale. The leaders I speak to are thrilled by the possibility of eliminating time-consuming manual processes, like invoice processing and PO creation, as it allows them to focus on the higher value activities that drive real strategic impact.

3. Consolidating spend and vendor management

With every dollar under scrutiny, procurement teams are consolidating vendors and reassessing spend to find savings. Many companies I speak to are working on evaluating their supplier networks, seeking to reduce redundancy and secure more favorable terms by consolidating purchases from a smaller number of trusted partners. 

Zip’s GM of Procure-to-Pay, Shao Zhu, recently wrote about how Apple employed this strategy during times of economic uncertainty, seizing the moment to re-engage with vendors to negotiate better terms. Procurement leaders I speak to are following similar strategies, leveraging economies of scale to negotiate better contracts, and reduce the administrative burden of managing multiple suppliers.

At the same time, finance teams are being more rigorous in vetting new spend, applying a higher level of scrutiny to every new investment.

4. Stricter spend controls and approvals

Finally, procurement leaders are extremely focused on strengthening spend control processes. Finance teams are reviewing new spend with a fine-tooth comb, ensuring that every purchase is justified. This means procurement must be prepared to present data-backed rationale for each expense.

At Zip, we’ve seen how our customers are using approval workflows to maintain visibility and enforce policies, which is especially valuable in times of economic pressure. By automating approval processes and integrating them with procurement and procurement-adjacent workflows, organizations can maintain a clear audit trail while ensuring compliance with evolving financial guidelines.

Building resilience in uncertain times

There is a common thread in these conversations: procurement leaders are building resilience in their strategies to prepare for whatever the future may hold. 

By leveraging AI, automating routine tasks, consolidating spend, and enforcing stricter spend controls, these thoughtful leaders are taking proactive steps to secure their organizations' financial health.

At Zip, we’re committed to helping our customers navigate these challenges with technology that supports their evolving needs. If you’re looking to strengthen your procurement processes and build resilience into your operations, please reach out and schedule some time with us! 

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