Amazon Releases State Of Procurement Report

Nov. 30, 2023

SEATTLE – Amazon Business’ 2024 State of Procurement Report (released earlier this month) revealed that a majority of procurement teams expect their budgets to rise next year. According to a press release from Amazon, the report concluded that many leaders are evaluating how they can further invest in tools and technologies to deliver optimization and a more strategic approach to business buying.

The report highlights business-to-business (B2B) trends and global insights around procurement needs, priorities, and challenges. It features insights from government, financial services, hospitality and food service, health care services, manufacturing, medical and pharma, retail, technology, and telecom industries, and includes insights from buyers in France, Germany, Italy, Japan, Spain, UK, and U.S.

The report shows that more than half (53%) of respondents expect their budgets to increase in 2024. Following a year of focusing on reducing costs, procurement leaders are now planning to use the funds they saved to invest in approaches to optimize their procurement processes and allow them to operate more strategically, with the efficiency and complexity of procurement listed as the top challenge they’re currently facing.

Among respondents, 98% said they were planning investments in analytics and insights tools, automation, and AI over the next few years.

“We are entering a new era of smart business buying where senior leaders are understanding the impact procurement can have on efficiency and overall company success,” said Alexandre Gagnon, vice president of Amazon Business Worldwide via press release. “At Amazon Business, we develop scalable solutions for customers and solve their biggest procurement challenges.

“Heading into 2024, the procurement function is now cross-disciplinary, spanning functional and strategic purviews as buyers are planning to invest more in technology and optimization while future-proofing their companies,” Gagnon continued. “Ultimately, procurement not only keeps operations running, but plays an integral role in achieving key organizational goals, and with smart business buying, companies have procurement solutions to serve as a growth lever for organizations.”