Five must-have features of procurement solutions in 2025

Procurement solutions are always evolving in response to digital transformation, supply chain disruptions, and cost optimization pressures. While organizations now see procurement as a driver of innovation rather than merely a back-office function, this increased responsibility brings new challenges, including the risk of cyberattacks and difficulties integrating new technologies.

To stay competitive, organizations need flexible, data-driven procurement solutions that enable them to shift alongside industry changes. In response, the number of adaptable solutions is growing every day as technologies follow the latest trends shaping the procurement landscape.

Four trends shaping procurement solutions in 2025

To gain insight into the biggest changes on the minds of procurement professionals, Amazon Business recently published data from its annual 2025 State of Procurement Data report, which surveyed 3,500 procurement and organizational leaders across the globe. A few of the common trends that stood out include:

• Artificial intelligence (AI)-powered procurement and predictive analytics
• Supply chain resilience and risk management
• Sustainability and ethical sourcing
• The integration of smart business buying solutions

1. AI-powered procurement and predictive analytics

Scores of procurement teams are looking to employ stronger reporting and analytics capabilities, with many decision-makers planning to invest in diverse, AI-powered technologies in the next two to three years. According to the report, generating better data, insights, and analysis is “very important” and/or a top priority over the next year or two for 64% of decision-makers and 73% of senior leaders.

While AI is currently used in today’s technology to help optimize purchasing decisions, its role is expected to expand into nearly all areas of procurement technology with tools like the following:

• AI demand forecasting: These cloud-based tools help predict future demand by going beyond historical data to include real-time market trends and consumer behavior.
• AI-driven spend analysis: Spend Visibility tools track buying patterns in different spend categories to identify cost-saving opportunities that help inform decision-making.
• AI-automated procurement activities: Automation helps save time by managing procurement functions like invoice processing, purchase order creation, and contract management.
• AI supplier risk management: AI can help mitigate risks in supply chain management by continuously monitoring supplier performance and proactively identifying potential supply chain delays.
• AI-powered chatbots and virtual assistants: AI chatbots can improve communication, provide guided buying, and automate routine supplier interactions, such as checking order status and sending updates.
• AI-informed supplier selection: AI algorithms speed the supplier selection process by analyzing pricing, performance metrics, and compliance records for many suppliers simultaneously, helping narrow down your best options.

2. Supply chain resilience and risk management

To mitigate supply chain disruptions, procurement teams are shifting from “just-in-time” (JIT) inventory management to ”just-in-case” (JIC) inventory. Instead of only ordering supplies when needed, organizations are beginning to keep a stockpile of supplies on hand to manage unpredictable demand and reduce the risk of lost sales due to a lack of inventory.

Additionally, more procurement departments are prioritizing buying from diverse supplier networks to help protect their inventory. According to the State of Procurement report, the growing importance of socially responsible purchasing processes is pushing procurement teams to embrace a stronger leadership role in fostering sustainable and diverse supply chains, with 80% of organizations working toward certified supplier mandates.

This is one reason many organizations use Amazon Business. The smart business buying solution offers a diverse network of vetted business sellers to help buyers mitigate risk by showcasing hundreds of millions of products from hundreds of thousands of suppliers, all in one place.

3. Sustainability and ethical sourcing

Companies are increasingly emphasizing corporate social responsibility (CSR) in their procurement strategies. More sustainable purchasing was identified as “very important” or a top priority for 62% of surveyed decision-makers and 67% of senior leaders over the next one to two years.

Some procurement solutions include tools to help organizations meet sustainability goals by providing more sustainable products and services or responsible shipping practices. For example, Amazon Business offers thousands of products with sustainability certifications, which organizations can identify easily by looking for the Climate Pledge Friendly label. Companies can also choose shipping options that use less packaging and consolidate deliveries to one day per week on eligible items.

4. The integration of smart business buying solutions

Organizations are shifting toward comprehensive smart business buying solutions for their ability to streamline strategic sourcing, connect buyers with vetted sellers, and reduce costs. These solutions may offer features such as:

• Bulk discounts
• Wholesale pricing
• Consolidated purchasing
• Diverse supplier networks
• Savings on recurring deliveries
• Built-in spend management and analytics tools
• Guided Buying and automated compliance with internal policies
• Streamlined vendor management

Smart business buying solutions like Amazon Business often integrate with other procurement software as Punchout, making them easy to incorporate into your current tech stack.

Key features of high-performing e-procurement solutions

When shopping for the right e-procurement solution for your team, focus on must-have elements that go beyond desirable features. Make sure these capabilities are part of your requirements as you narrow down your options.

Scalability and flexibility

The procurement function, like the technologies driving it, is rapidly evolving. Your procurement solution must be flexible and scalable to continue adapting to the supply chain landscape and your organization’s growth. 

Look for features like customizable approval processes, reporting tools, and integration capabilities to ensure your software can evolve to your business needs over time.

Seamless integrations with ERP and procurement systems

If your procurement tools don’t seamlessly integrate with your existing tech, including enterprise resource planning (ERP) and procurement systems, they may not be sustainable or efficient in the long run. Before making a purchase, confirm compatibility with your current software to prevent needing to replace other systems or disrupting workflows.

AI-driven spend insights

At the very least, your procurement solution should provide built-in spend insights to help you track spending over time. Without this capability, you won’t be able to identify spending patterns and new opportunities for savings. Many of today's procurement tools come with reporting and analytics features, so make sure your solution is one of them.

Built-in compliance and cost control

If multiple users will make purchases on your organization’s behalf, look for a tool that lets you set custom purchasing boundaries based on your internal policies and budgets. This makes it easier to control costs and keep spending under control regardless of who’s doing the buying.

Supplier diversity and risk mitigation

Because supply chain disruptions are becoming more common and unpredictable, it’s best to invest in a tool that offers plenty of supplier diversity to help you mitigate risk. Make sure you have access to a wide range of vetted B2B suppliers, with clear comparison tools and robust options so you can pick the best fit.

How procurement solutions drive industry-specific success

Procurement looks different across industries, meaning some tools may work better for certain types of organizations than others. It’s important to factor in industry specifics when trying to solve your procurement challenges.

Enterprise and SMBs: Scaling operations efficiently

Large enterprises and small businesses have different procurement needs in terms of quantity, cost, inventory, and more. Consider the size of your business and whether your procurement solution can scale as you grow. 

Amazon Business’s smart business buying solution provides tiered options for small teams up to global enterprises. This flexibility allows you to grow with your solution regardless of your organization's size.

Healthcare and nonprofits: Ensuring compliance and cost savings

Procurement compliance is critical in regulated industries like healthcare and nonprofits. These types of organizations need to be able to stretch their budgets while remaining focused on their mission.

For this reason, healthcare organizations should prioritize easy, intuitive access to multiple diverse suppliers to find the best prices. 

For example, Seattle Children’s Hospital, consistently ranked among the nation’s best children’s hospitals by U.S. News & World Report, collaborated with Amazon Business to streamline its procurement process for smaller, off-contract purchases. “I love that Amazon Business eases the purchasing process for our staff so they can focus on their value-add work,” said James LeRoy, Director of Strategic Sourcing & Value Analysis at Seattle Children’s. “Our procurement team loves the reporting options, plus a tracking mechanism that helps our receiving team easily locate packages in transit.”

Manufacturing and industrials: Managing bulk purchasing and supplier relationships

Bulk purchasing and efficient supplier management help manufacturers reduce production costs, which is essential to maintaining profit margins. In these industries, the ability to purchase raw materials with bulk buying or wholesale discounts is a huge benefit. B2B marketplaces offering customized procurement solutions for industrial needs, such as Amazon Business, are a great place to start.

At CSAT Solutions, whose “complete care for the digital world” includes repair and logistics services for a large and growing range of electronic devices, the team needed to keep revenue growing without increasing costs. The organization adopted Business Prime on Amazon Business and is now on track to save $225,000 on costs related to products and shipping in its first year. The company has also consolidated its roster of vendors by 50 percent, reducing administrative costs. “Purchasing was comfortable with Business Prime right away,” said Chris Tiesman, former Chief Financial Officer of CSAT Solutions. “That’s part of the benefit of Amazon Business: everyone is used to having it at home, and this isn’t much different. If you’ve already purchased something online from Amazon, you know how to do this.”

Education: Streamlining purchasing for schools and universities

Schools that offer K–12 education, colleges, and universities all require efficient procurement to acquire supplies, equipment, and technology that enable learning and growth. These institutions often have limited budgets and no dedicated procurement team for purchasing or optimizing spend. 

They also need a simple user experience and visual analytics to help users understand how to cut costs quickly. Tools like Amazon Business provide easy order management and tax-exempt purchasing options.

When Shelby County Schools, one of the highest-rated county school systems in Alabama, needed to streamline its purchasing process and give finance a more comprehensive view of spending patterns, the organization chose Amazon Business for its ease of use and sharp prices. “We get everything from books and office supplies to costumes for drama productions through Amazon Business. The broad catalog means a variety of products can be found in one place, and often for the lowest price. That’s a huge benefit," said John Gwin, Chief Finance Officer.

Similarly, Sharon Loosman, Procurement Director at North Carolina State University, needed to empower 2,200 faculty and 6,500 staff to operate independently as the experts of their own curriculum needs while still managing compliance. “With our [Punchout] integration, we now have all of our colleges and individual academic departments buying in one place, which is a great thing since they understand their needs better than the central administrative office,” said Sharon.

Government: Meeting compliance while reducing costs

Public sector organizations need unique e-procurement solutions that comply with local, state, and federal procurement regulations. This includes ensuring competition to get the best value for taxpayers while maintaining open and fair processes that avoid favoritism.

Some solutions have built-in capabilities tailored to meet these needs, while others focus only on the private sector. Amazon Business supports government contract purchasing, tax-exempt buying, and compliance with procurement policies, all within the same solution. 

“We can buy local by negotiating toner prices with a locally certified minority- and woman-owned business, so the off-contract toner spend is now captured in Amazon Business,” said Erin Sher Smyth, City Purchasing Agent at Baltimore City Department of Finance. “It’s a huge benefit to us that we have more transparency with pricing using Amazon Business.”

Travel and hospitality: Enhancing supply chain agility

Travel and hospitality businesses must react quickly and efficiently to customer needs despite unanticipated disruptions. Reporting and analytics tools play a crucial role in maintaining agility by offering strategic insights that can inform decision-making. 

Take, for example, procurement to supply the 25 “floating cities” that make up the fleet of ships at Carnival Cruise Line. 

“Prior to using Amazon Business, the word I would use is ‘frustrating.’ It was a very manual process, with lots of email traffic and spreadsheets,” said Scott Thompson, Vice President of Supply Chain at Carnival Cruise Line. Working directly with Amazon Business, Carnival created a system in which advance shipping notices (ASNs) were transmitted directly to ships ahead of delivery so that crews can easily scan and route to the right person or department. “Instead of runners going around with scanned documents and making copies, we’re reading bar codes off the box,” Thompson said.

By integrating Amazon Business with Oracle’s E-Business Suite iProcurement module, Thompson said identifying needs and acquiring necessary products—previously a monthslong process—could be completed in just a couple weeks. Two-week purchase order processing times were reduced to minutes with electronic approvals and delivery.

The future of procurement solutions: Why adaptability matters

Amazon Business' annual reports on the state of procurement reveal how the procurement industry evolves year after year. New technologies, a greater emphasis on risk management, and the growing popularity of B2B digital solutions continue to shape the future of supply chain management, making adaptability in the procurement lifecycle more important now than ever.

To remain agile, start by auditing your current procurement strategy to spot cost-saving opportunities, inefficiencies, and technology gaps. Then, identify key procurement upgrades for 2025 that offer modern solutions.

Explore how Amazon Business can help streamline your procurement process with flexible purchasing solutions, supplier diversity tools, and cost-saving insights. Create your free account or work with us to find the right procurement strategy for your organization.