How has the world of procurement and supply chain treated you and your business this year?
Chances are, you’ve spent a considerable amount of time in 2025 juggling cost pressures and regulatory changes. Or perhaps you’ve been wrestling with the best approaches to meet your sustainability commitments, or getting your head around the ongoing challenges of AI, LLMs and automation. Resilience is nothing new in this profession – but this year really has demanded it in spades.
As we head towards year-end, it’s worth pausing to reflect on how the UK market has shifted and what procurement and supply chain leaders can do to prepare for 2026.
What’s been shaping the UK agenda
UK businesses have spent much of 2025 balancing inflation, volatile import costs, ever-persistent geopolitical turbulence and ongoing supply-chain fragility. At the same time, procurement has continued its shift from a cost-cutting function to a strategic driver of innovation, resilience and growth.
KPMG’s UK Supply Chain Stability Index and its broader 2025 outlook both point to a sector that is under strain, but also one that offers significant opportunity for reinvention – and getting the competitive edge.
Here are the headline insights UK leaders need to know.
Smarter cost management
Traditional cost-saving levers have not so much been squeezed dry as reduced to a husk over the past few years. That’s one of the key reasons UK organisations are leaning heavily into cost-to-serve analytics to uncover more sustainable efficiencies. By breaking down the actual cost behind customers, products and fulfilment routes, procurement leaders can target savings in strategies and tactics that don’t compromise long-term value.
Many UK procurement teams will have increased their use of analytics in 2025, and KPMG highlights AI-driven spend intelligence as an enabler of this shift. Machine learning (ML) and predictive tools are helping teams forecast inflation, identify cost anomalies and adjust quickly.
Risk management front and centre
Risk management and mitigation continue to dominate every board agenda this year. According to KPMG’s 2024/25 UK CEO Outlook, supply chain disruption remains one of the top three risks UK chief executives expect to influence performance through 2026.
The drivers will be familiar with all our readers, but are doubtless escalating due to:
- Inflation and input cost volatility
- Tightening regulations across the EU and UK
- Threat and complexity of cyber-attacks
- Increasingly complex global supply routes
- Geopolitical events
KPMG recommends building much deeper supplier-network visibility and strengthening predictive capabilities using tools such as Digital Twins and scenario modelling.
ESG and Scope 3 pressures intensify
The UK Net Zero Business Census revealed a pretty cllear picture of where UK businesses stand when it comes to climate action.
- 79% of large organisations see net zero progress as a medium to high priority over the next year, influencing their supply chains.
- 51% of large organisations have been asked for carbon data by suppliers, rising to 62% for exporters.
- Despite steady ambition, only 11% have formal net-zero targets.
- 59% have improved energy efficiency, and 55% have reduced waste.
- Costs remain the main barrier, cited by 66% as limiting progress.
The need for great AI governance
Generative AI is undoubtedly an incredibly useful tool for businesses. But without ethical application, robust governance and smart human intervention, its benefits could transform into serious problems. UK organisations are increasingly piloting AI for supplier risk scoring, contract drafting, demand forecasting and category analysis. Perhaps you have experimented with these uses yourself in 2025 or are planning on doing so next year. Whatever your strategy, the message is consistent across KPMG’s guidance: AI works when governance works.
This includes having a business and technology-specific strategy that incorporates:
- Data ethics
- Transparency
- Auditability
- Regulatory alignment
Transforming procurement tech
Intake & Orchestration (I&O) platforms have been the rising star of UK procurement technology in 2025. These tools help teams streamline requests, approvals and cross-system workflows. This is particularly useful for mid-size businesses trying to modernise without replacing entire ERP systems.
Sourcing and securing the top talent: The defining issue for 2026
The biggest limiting factor for many of the above challenges and opportunities is people. The UK talent shortage is becoming acute. Many UK organisations struggled to hire the right procurement professionals in 2025, and demand for data, risk and ESG-literate professionals significantly outstrips supply.
KPMG also highlights talent as one of the biggest blockers to transformation, emphasising the need for procurement teams who understand AI, sustainability and analytics, not just category management.
At Bramwith, we’re proud to partner with organisations across the UK and worldwide to secure high-performing procurement and supply chain talent, including specialists in AI, ML, data and ESG. If you need to grow your team in 2026, get in touch. We’d love to help.
In summary: What UK business leaders should prioritise in 2026
KPMG’s insights echo our own outlook. The procurement and supply chain organisations that will thrive in 2026 will be those that bring technology and human capability together.
Here are the practical takeaways:
- Invest in digital and ESG skills now
Talent shortages are growing. Build your talent pipeline early.
- Strengthen visibility and governance
Supplier mapping, risk dashboards and strong data foundations are non-negotiable.
- Treat sustainability as strategic, not administrative
ESG should influence sourcing decisions, not simply reporting.
- Work with specialist recruiters
Competition for UK procurement talent is fierce. Partnering with specialists ensures access to scarce AI, ML and ESG skills.
If you’d like support building a resilient, skilled procurement function for 2026 and long into the future, our specialist team at Bramwith is here to help. Get in touch today to find out how we can support your business.
