According to KPMG’s 2024 Global Supply Chain Trends report, 71% of organisations are prioritising digital transformation to drive agility and resilience, with artificial intelligence (AI), advanced analytics and cloud technologies topping the investment agenda.
The report, subtitled The digital shake-up, highlights a clear shift from reactive supply chain strategies to predictive and proactive models, powered by real-time data and machine learning.
PwC’s Digital Supply Chain Survey reinforces this, revealing that digitally mature supply chains are six times more likely to experience revenue growth and profitability than their less advanced counterparts.
These leaders are using AI to refine forecasting accuracy, cloud-based platforms to enhance end-to-end visibility, and smart systems to track sustainability metrics across procurement.
Meanwhile, SecurityBrief Asia’s 2025 trends forecast points to a sharp rise in supply chain cyberattacks, prompting a surge in investment toward cybersecurity, encrypted data exchange and secure-by-design infrastructure.
Without strong cyber defences, the promise of digital procurement can be swiftly undermined, making resilience just as important as innovation.
In South Africa, the digital momentum is gaining pace. We’re in a period of accelerated digital exploration.
Many organisations are moving from tactical automation to more strategic, integrated procurement practices. While not every sector is moving at the same speed, the pressure to modernise is mounting, driven by rising customer expectations, global competitiveness, and the need for supply chain transparency and resilience.
Retail giants like Woolworths, Checkers, and Massmart are at the forefront, deploying AI for omnichannel stock management, RFID-enabled inventory tracking, and predictive replenishment systems. In the financial and telecoms sectors, organisations such as FirstRand and MTN are embracing advanced sourcing models and AI-driven data platforms to enhance procurement performance and broader business value.
Even in more traditional sectors, procurement teams are experimenting with chatbots, warehouse automation, and digital contract management—evidence that a quiet but determined transformation is under way.
Yet, despite growing enthusiasm, the path to digital maturity isn’t without obstacles. There are three key challenges facing procurement teams:
- Legacy Systems – Outdated technologies often don’t integrate easily with new platforms, slowing adoption and innovation.
- Skills Gaps – Procurement teams sometimes lack the digital literacy and change management expertise needed to lead transformation.
- Cultural Resistance – In many organisations, procurement is still viewed as a transactional back-office function rather than a driver of strategic value.
Budgetary constraints and uncertainty around return on investment are also major concerns. But once organisations see results from a successful project, confidence tends to grow rapidly.
To support this transition, the Chartered Institute of Procurement and Supply (CIPS) is playing a pivotal role. Through globally benchmarked qualifications, upskilling programmes, executive briefings and thought leadership, CIPS is helping procurement professionals and teams acquire digital fluency.
We’re not just digitising procurement—we’re reimagining it. We want professionals to lead transformation, not just survive it.
Another pressing concern is talent. Is the current pipeline of professionals equipped to meet the demands of a digital procurement future?
The short answer is: not yet. We’re seeing growing awareness, and professionals are starting to upskill—but the pace of technological change is relentless.
CIPS is addressing this by embedding digital capabilities such as data interpretation, AI literacy, and strategic sourcing into its qualifications. It’s going to take a collaborative effort – from academia, professional bodies, and industry – to close the gap and ensure a resilient, future-ready workforce.
Looking ahead, procurement in South Africa is set to become more data-driven, ethical, and interconnected. Several trends are converging to define the future:
- Predictive and prescriptive analytics – to anticipate supply disruptions and drive smarter decision-making.
- Sustainable and ethical procurement – ESG considerations are becoming non-negotiable, and digital tools are crucial for compliance.
- Integrated digital ecosystems – Fragmented systems are giving way to unified platforms with end-to-end visibility.
But the most profound shift may be in the role of the procurement professional. Tomorrow’s procurement leader will be tech-savvy, strategic and deeply embedded in cross-functional value creation.
We’re witnessing the rise of a new procurement paradigm – one that sees technology not as a threat, but as a transformative ally.
As global and local trends converge, South Africa has both the ambition and the capability to lead the continent’s supply chain revolution.
