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Business Pressures: Procurement is now the front line of resilience

The RS and CIPS 2026 Indirect Procurement Report shows procurement under pressure with costs, risks, and expectations all rising. Based on new research focused on the UK & Ireland, 68 per cent of respondents cite inflation as their biggest challenge, while half face renewed supply chain risk and geopolitical disruption.

If there is one defining tension for Maintenance, Repair, and Operations (MRO), it is that organisations are being asked to deliver lower costs, higher resilience and greater strategic control in the most volatile environment in recent years. These pressures, external and internal, are rapidly shaping the role indirect procurement plays within businesses.

Unsurprisingly inflation and higher costs are the biggest challenge, cited as the single biggest concern for the year ahead by 68 per cent of respondents (up from 62 per cent last year.) This pressure is universal, leading procurement teams to find ways to absorb cost where they can - and defend margins where they cannot.

The challenge is complex. Half of respondents now point to managing risk in the supply chain, while concern about global political uncertainty has jumped sharply to 47 per cent - from 37% - in a year. This illustrates a landscape in which cost, continuity and geopolitics have fused. As Martin Wakelin, Group Head of Indirect Procurement at Valeo Foods, puts it:

The only way to stay resilient is to “treat procurement as a strategic lever, not a back-office task.”

A profession under strategic scrutiny
The combination of inflation, disruption and geopolitical exposure is elevating the internal standing of procurement. The Chartered Institute of Procurement & Supply (CIPS) notes that:

“Tariffs, geopolitical tensions and supply chain reconfigurations are rewriting the map of global commerce.”

Procurement and supply chain professionals are on the frontline of these pressures and are being recognised as the ‘cool heads’ to navigate their organisations through this turbulence.

The re-emergence of tariffs and trade friction means organisations are actively re-engineering their sourcing strategy. Two dominant tactics for mitigating tariff impact emerged. There are 65 per cent who are reviewing their supply chain and the location of suppliers, with 57 per cent re-negotiating existing contracts. Larger organisations lean on commercial leverage, with 64 per cent planning to renegotiate terms. Around 24 per cent of smaller firms are more likely to hold more stock, and almost one in five (19%) are making moves toward near-shoring.

Internal constraints and blind spots
External disruption is compounded by intensified internal constraints. Reduced operational budgets remain the number one internal pressure, cited by 56 per cent of respondents, creating an almost paradoxical brief: deliver resilience at lower running cost. At the same time, the need to reduce inventory costs has risen to 44 per cent, firmly placing working capital back in focus.

Despite this focus on efficiency, a persistent blind spot remains: 38 per cent of respondents still do not know their internal cost to process an order. CIPS argues that organisations “need to invest further in technology, and perhaps AI, to surface better insights, good data and improved supply chain visibility.”

Resilience by design
Organisations are responding to volatility with two dominant tactics: consolidating the number of suppliers (50%) and driving value through supplier partnerships (46%). Fewer suppliers mean more leverage, and deeper partnerships facilitate joint problem-solving over transactional haggling.

This drive for centralisation is increasingly framed not just as a savings exercise, but as a resilience strategy. Centralising functions like procure-to-pay creates standard data, common contracts, and consistent service levels, which in turn lays the groundwork for digitisation, automation, and AI-enabled decision support. As one senior procurement manager notes, this shift moves the function “from firefighting to long-range, strategic planning.”

If the past three years have been about survival, the next three will be about engineered resilience. CIPS’ views on this are clear: “as the profession becomes increasingly influential, leaders must develop their strategic and leadership skills to effectively communicate and build close relationships with both stakeholders and suppliers”. Or as Raj Patel, MD of RS for UK & Ireland puts it, “The best operators are pulling every lever to drive efficiency - scrutinising every pound of indirect spend, consolidating tail suppliers, and building risk-mitigation plans so they can stay lean without being exposed when disruption hits.”

Cost pressure, disruption and geopolitical volatility have not reduced the scope of procurement - they have expanded it. Those who recognise this and equip their procurement teams accordingly are the ones most likely to turn volatility into strategic advantage.

To find out more about how economic uncertainty is rewriting the rules of procurement efficiency, download the report below.

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