The Economist Impact study, sponsored by SAP and based on responses from more than 2,000 global C-suite executives, highlights the continued evolution of procurement from a traditional cost-management function into a strategic business capability. The report, The Resilient Edge: Procurement in an Era of Polycrisis, explores how procurement is responding to growing geopolitical uncertainty, economic instability, supply chain disruptions, and sustainability pressures.
One of the study's key findings is the growing confidence executives have in procurement's ability to manage external risks. Geopolitical risk emerged as the top priority for procurement leaders, while confidence in procurement's risk-management capabilities increased significantly compared with previous years.
The report also highlights the growing role of artificial intelligence in procurement. Organizations increasingly view AI skills, predictive analytics, demand forecasting, and scenario planning as critical capabilities for future procurement teams. A large majority of respondents expressed confidence in their ability to adopt AI to improve procurement efficiency and decision-making.
Sustainability remains another major focus area, with more than half of respondents identifying it as a strategic priority. Procurement functions are increasingly responsible for supplier sustainability initiatives, emissions management, ethical sourcing, and broader ESG objectives.
The ProcureScore View
For many years, procurement was largely viewed as a department responsible for negotiating prices and controlling costs. This study shows just how much that perception has changed. Today, procurement is increasingly being recognized as a strategic function that helps organizations navigate uncertainty, manage risks, and support long-term business objectives.
What stands out is how the role of procurement has expanded beyond traditional sourcing activities. Businesses are dealing with geopolitical tensions, supply chain disruptions, inflation, sustainability pressures, and rapid technological change—all at the same time. In this environment, procurement teams are expected not only to secure supply and control costs but also to anticipate risks, support innovation, and help organizations remain resilient during periods of disruption.
The study also highlights the growing importance of AI within procurement. While AI is often discussed as a future capability, many organizations now see it as a practical tool for improving forecasting, supplier management, risk monitoring, and decision-making. However, technology alone is not enough. Success will depend on procurement teams developing the skills and capabilities needed to use these tools effectively.
Another important takeaway is procurement's growing influence on sustainability. As organizations work toward environmental and social goals, procurement has become a key driver of supplier engagement, responsible sourcing, and emissions reduction across the supply chain. This places procurement at the center of many strategic business initiatives rather than on the sidelines.
Overall, the report reinforces a trend that has been building for several years: procurement is no longer judged solely by the savings it delivers. Its value is increasingly measured by how effectively it manages risk, enables resilience, supports innovation, leverages technology, and contributes to broader business goals. Organizations that recognize and invest in this expanded role are likely to be better positioned to succeed in an increasingly complex and unpredictable business environment.