New industry-wide research from RS & CIPS identifies Procurement as the essential strategic lever for managing cost, risk, and compliance in a volatile environment.In this article, Raj Patel, Managing Director for RS UK & Ireland, gives his perspective on the survey findings.
The theme of ‘uncertainty driving efficiency’ runs through the ninth annual report on the state of indirect procurement in the UK and Ireland, from RS Group and the Chartered Institute of Procurement & Supply (CIPS). The report reveals a sector under pressure, but also one becoming increasingly confident in its strategic role.
The new fusion of cost and risk It is no surprise that the single biggest challenge facing the organisations we surveyed is inflation and higher costs. Sixty-eight per cent of respondents cite it as their major concern, a rise of six per cent year on year. Yet, risk management is almost as pressing with 50 per cent of organisations highlighting supply chain risk and 47 per cent geopolitical disruption. In this climate, every pound of indirect spend, every supplier relationship, and every process is under rigorous review.
The best operators are pulling all the levers they can access to drive efficiency - consolidating suppliers and developing risk-mitigation plans to stay lean without being exposed when disruption hits. Supplier relationships are changing too. Efficiency in 2026 is not simply about paying less, it is about structuring supply so the organisation can absorb volatility without breaking stride.
ESG: proving business value One of the central questions addressed in the report is whether cost pressure is undermining sustainability. The answer is complex. Fewer organisations are prepared to pay a premium for sustainable products (down to 53% from 82% two years ago), but sustainable and ethical procurement still ranks among the top strategies being implemented by organisations, with more than half of them continuing to prioritise reducing carbon footprint, and nearly half of respondents defining the sourcing of more sustainable Maintenance, Repair, and Operations (MRO) products as important or very important.
The clear message is that ESG must prove its business value. Net zero, reduced waste, and safer, lower-impact products are being reframed as critical operational performance levers and ESG strategies are rooted in long-term commitments, not quarterly tactics and organisations.
MRO: Where cost, risk and uptime collide MRO is the point where cost, risk and continuity intersect. Deciding what to hold for a line break versus what to source in an emergency, demands plan A, B and C. Our survey data highlights how procurement teams are deliberately responding to this challenge. For instance, consolidating supplier bases to focus accountability and prioritise efficiency (the average number has reduced year on year to 83 from 92).
And harnessing technology - Artificial Intelligence (AI), analytics, workflow automation, and guided buying are changing how teams operate. As a result the average cost to process an order has dropped substantially from £89 to £77 in a year.
There are solutions available to provide more efficient ways or working and we have experience helping organisations across sectors. Some recent examples of cost being driven out of the procure to pay process include these case studies for the rail industry and aggregates.
A new discipline for procurement Procurement has always been about managing risk and cost. The difference now is that these two variables are no longer separable; you can’t talk about price without discussing continuity you can’t speak about resilience without considering efficiency and you can’t examine ESG without reviewing value.
The forces shaping our world are not easing, but the best response is reinvention, not retreat. Efficiency is no longer about doing more with less. It is about doing better, faster, and more responsibly with what we have.
To fully understand how this period of economic uncertainty is rewriting the rules of procurement efficiency and what leading organisations are doing to adapt, I encourage you to read the full report. Download the report below, to find out more.
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