The use of Generative AI in procurement has increased by 15% in the past year, mostly for creating documentation; translating, standardizing, or improving language; as well as analyzing spend to identify opportunities for savings or consolidation. With most organizations spending under $10,000 for AI adoption, it is proving to be a cost-effective time saver.

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The most common methods that supply chain executives justify their investment in risk mitigation strategies are with ROI estimates, customer satisfaction, impact on cost, and revenue dollars at risk. Authorizing costly risk mitigation expenses is one of the primary challenges for executives, particularly when they are only potential risks.

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Organizations are currently implementing a number of strategies to manage the potential impacts of stricter immigration policies. These strategies include accelerating workforce automation, partnering with educational institutions to build a talent pipeline, and increasing wages. 

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Companies are currently implementing a number of actions in order to mitigate the impact of potential new tariffs. The leading action companies are currently taking is conducting comprehensive supply chain risk assessments with potential price impact analysis (63%). These risk assessments are crucial for procurement/SCM professionals to help ensure business continuity and understand potential financial risks to the company.

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While geopolitical risks are often unknown and uncontrollable, the top strategies global organizations use to manage these supply chain risks include increasing the number of countries as sources of supply; increasing the number of suppliers; buffering inventories; and reshoring or nearshoring. These approaches help to minimize the risk of disruptions caused by geopolitical tensions while also enabling faster responses to market demand fluctuations. 

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