Procurement in Industrial Goods 2025: What to Focus on Now

 

The industrial goods sector in 2025 stands at a critical juncture. As outlined in INVERTO’s recent Procurement Trends article, rigid cost management, delivering value, and managing uncertainty are more crucial than ever. These overarching strategies provide the foundation for procurement success across industries. But how do they translate to the specific challenges of industrial goods?

In this article we not only explore the key trends shaping procurement in industrial goods but also give guidance on what to prioritize to drive resilience, innovation, and growth in your supply chains.

 

Automotive & Mobility:

Build Resilience Amid Geopolitical and Technological Shifts

The automotive sector is undergoing profound transformation as new players, electrification, digitalization, and geopolitical tensions reshape the landscape. Procurement leaders must address these changes strategically to build resilient and adaptive supply chains.

  • Develop flexible supply chains with strategic partners: Geopolitical tensions pose unprecedented uncertainty andrisk of supply chain disruptions. Additionally, the instable transition from ICE to xEV models makes volume projections volatile driving commercial challenges for all involved parties. Procurement leaders need to understand their supply chain from raw material to finished product and proactively manage their supplier network. This includes tracking tariffs, trade restrictions, local content requirements and blacklisted suppliers to adapt sourcing strategies dynamically and mitigate disruptions.
  • Secure Access to Critical Resources and Technologies: In an increasingly volatile market, securing access to the latest technologies and critical materials is paramount. This requires forming strategic partnerships with key suppliers, investing in diversified sourcing strategies, and fostering innovation through close collaboration with technology providers.
  • Reevaluate Procurement Models: Automotive players should question whether their current procurement models are fit for the challenges ahead. As detailed in Inverto’s Blueprint for Automotive Procurement, new approaches to category management, supplier collaboration, and digital integration can unlock additional value and enhance agility.

What to Do Now: Conduct a comprehensive geopolitical risk assessment and identify exposure in your supply chain. Diversify suppliers to reduce dependency on high-risk regions and invest in digital platforms for real-time visibility and predictive analytics. Additionally, evaluate your procurement model using insights from Inverto’s automotive blueprint to ensure it aligns with future challenges and opportunities. Put special emphasis on understanding the effects of volume volatility and partner with your suppliers to increase flexibility in the network and collaboratively address rightsizing opportunities.

Greentech & Engineered Products:

Accelerate Sustainability and Agility while Adapting to Regulatory Pressures

The drive for sustainability and rapid innovation defines procurement in this sector. However, new regulatory frameworks especially in Europe, such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Carbon Border Adjustment Mechanism (CBAM), are adding complexity to procurement strategies. To stay competitive and compliant, organizations need to:

  • Partner with Eco-Focused Suppliers: Collaborate with suppliers who share your sustainability goals to meet the increasing demand for recyclable and sustainable materials. This alignment not only strengthens your competitive position but also ensures compliance with evolving regulations, such as CSDDD and CBAM.
  • Regionalize and Build Resilient Supply Chains: Address geopolitical risks and ensure scalability by strengthening regional supplier relationships. By reducing dependency on volatile global markets, companies can enhance supply chain resilience and better manage disruptions.
  • Adopt Agile Processes for Innovation and Compliance: Rapid innovation cycles and regulatory requirements demand procurement processes that are fast, adaptive, and compliant. Leverage AI, robotics, and automation to streamline operations, reduce time-to-market, and ensure adherence to sustainability standards.

What to Do Now: Review your supplier base to ensure alignment with sustainability goals and regional strategies. Focus on building a resilient supply chain network and integrating compliance with regulatory frameworks into your procurement processes. Use tools like INVERTO’s Volatility Manager to mitigate cost fluctuations at the portfolio and product levels.

Materials & Process Industry:

Make Circularity a Core Priority

Sustainability and regulatory pressures are reshaping procurement in this industry. Leaders must:

  • Implement Circular Economy Practices: Prioritize secondary materials and waste reduction initiatives. This not only supports environmental goals but also aligns with regulations such as CBAM, which incentivize lower carbon footprints in production and sourcing.
  • Leverage Industry 4.0 Tools: Digital integration is key to better inventory management and demand forecasting. Predictive analytics enables companies to respond proactively to market fluctuations while managing carbon-intensive materials more effectively.
  • Prepare for Commodity Market Volatility: Volatile commodity markets remain a critical challenge. Leveraging tools like INVERTO’s Volatility Manager can help companies manage cost fluctuations and ensure portfolio and product-level stability.

What to Do Now: Align procurement strategies with circular economy principles and regulatory requirements like CBAM. Collaborate with suppliers to meet sustainability goals and use advanced tools to forecast demand and manage volatility effectively. Build agility into your procurement processes to mitigate risks from market instability and regulatory changes.

Travel, Transport & Cities & Infrastructure:

Evolving with Urbanization and Sustainability

Procurement in travel, transport, and infrastructure is evolving to meet the demands of urbanization, sustainability goals, and the digital transformation of large-scale projects. To enable successful project delivery and resilience, procurement must play a pivotal role in:

  • Better Integration of Procurement into Infrastructure Projects: Urbanization and smart city initiatives demand early and integrated procurement involvement in capital expenditure (CAPEX) planning. This ensures cost efficiency, resilience, and alignment with long-term project objectives.
  • Sourcing for Sustainability: Achieving carbon reduction goals requires sourcing renewable materials and partnering with eco-certified suppliers. Aligning procurement strategies with sustainability objectives strengthens compliance with regulatory expectations and supports the green transition.
  • Leveraging Digital Platforms: Digital tools streamline procurement processes, providing enhanced visibility, accountability, and collaboration across the supply chain. This reduces inefficiencies and improves coordination in managing complex infrastructure projects.

What to Do Now: Engage procurement teams early in CAPEX planning to optimize costs and ensure resilience. Leverage digital platforms to enhance visibility and collaboration across supply chains. Develop sourcing strategies that align with sustainability and carbon reduction goals while ensuring compliance with regulatory requirements.

Conclusion: Turning Trends into Action

As highlighted in INVERTO’s Procurement Trends 2025, the industrial goods sector must focus on navigating uncertainty, delivering value, and managing costs to remain competitive. For procurement leaders, this means taking decisive steps to localize and diversify supply chains, adopt digital technologies, and prioritize sustainability. By embedding these principles into their strategies, organizations can build resilience and stay agile in the face of rapid change.

The year 2025 presents a pivotal moment for industrial goods procurement. Those who embrace innovation, deepen supplier collaborations, and align procurement goals with broader organizational strategies will turn challenges into opportunities and lead their industries toward a sustainable and prosperous future.

 

Article Procurement Trends 2025 Procurement Trends 2025

Video How Procurement must evolve in the Automotive Sector How Procurement must evolve in the Automotive Sector

White paper Rethinking Raw Material Management Rethinking Raw Material Management

 

 

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