CAPS News-09 July 2025

Navigating the Impact of Tariffs in Procurement Systems

In our latest Quick Poll report, "Processing Tariffs in Procurement Systems," we highlight the strategies procurement organizations are employing to manage tariffs within their systems. The report reveals that 77% of responding organizations are negotiating or challenging tariff-related increases with suppliers before processing them. 

Procurement organizations might consider the following next steps when wanting to negotiate or challenge tariff-related increases:

• Implement Monitoring Processes: Establish systems to track tariff-related costs and identify negotiation or cost reduction opportunities.
• Enhance Negotiation Skills: Train procurement teams to effectively negotiate with suppliers to address tariff-related cost increases.
• Stay Informed on Trade Policies: Keep updated on trade policy changes and adjust procurement strategies accordingly.

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Quick Fact – Using Generative AI to Boost Efficiency

CAPS recent report on Generative AI in procurement highlights that the most notable success procurement organizations have achieved with this technology is in "searching and analyzing contracts and other documents." One participant noted, "Implementing Generative AI for contract review has been our biggest win, not only from an efficiency standpoint but also reduction in legal costs."

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Webinar: Rewriting the Rules: Global Trade, Sustainability, and Supply Chain Research

As part of your CAPS membership, take advantage of the upcoming webinar on August 12 at 12:00 pm ET hosted by the Center for Responsible Supply Chain Management at ASU’s W. P. Carey School of Business and the Institute for Environmental and Social Sustainability at Indiana University’s Kelley School of Business. The webinar will delve into the critical intersections of global trade and sustainability, focusing on two pivotal industries: agribusiness and consumer electronics. 

[ Register Now]

Catch Up on Recently Added Content:

Emerging Technology Implementation Framework 

Generative AI in Procurement: Practical Use Cases

Quick Poll – Practices for Managing Per-Diem Payments to Contactors 

The Persian Gulf Rises as a Friendshoring Hub

As companies seek to reduce geopolitical risk and tariff exposure, Gulf nations like Bahrain, Saudi Arabia, and the UAE are positioning themselves as trusted manufacturing and trade partners. This article explores how the region's neutrality, infrastructure, and investment in advanced industries are making it central to the future of global supply chains.

[Read More from weforum]