TURBULENCE AHEAD: AI REVOLUTION, PROTECTIONISM, TARIFFS, TRADE BARRIERS, AND SUSTAINABILITY TO RESHAPE GLOBAL PROCUREMENT AND SUPPLY CHAINS

• GEP'S 2025 Outlook report reveals predictions and strategies to tackle AI integration, tariffs and uncertainty in value chains worldwide

CLARK, N.J., Dec. 3, 2024 /PRNewswire/ -- GEP^®, a leading provider of AI-driven procurement and supply chain software and services to Fortune 500 and Global 2000 enterprises worldwide, has unveiled its much-anticipated Outlook 2025: Procurement & Supply Chain report. This comprehensive report identifies six driving forces that will shape procurement and supply chains in 2025, providing actionable guidance to help leaders adapt, thrive, and build resilience in an era of rapid transformation.

"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," said John Piatek, vice president, GEP. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."

Authored by GEP's Thought Leadership Council, GEP Outlook 2025 provides six key predictions and guidance for procurement and supply chain leaders in 2025:

1. Autonomous AI Agents Driving Procurement and Supply Chains
   Outlook: Advanced AI tools will automate sourcing and leverage external unstructured real-time analytics for smarter decisions, among other tasks. AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic.
   Guidance: Invest in AI to streamline processes and enhance decision-making. Pilot AI tools like orchestration platforms and agents in high-impact areas, backed by strong data governance and scalability planning.
   
   
2. Expanded Value Metrics
   Outlook: Success will be measured by resilience, sustainability, and compliance alongside cost efficiency.
   Guidance: Develop KPIs for flexibility, carbon reduction, and supplier diversity. Communicate value beyond cost savings to stakeholders.
   
   
3. Supply Chain Resilience Amid Regulatory Scrutiny
   Outlook: Increasing regulatory demands will necessitate heightened supply chain transparency and accountability.
   Guidance: Strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
   
   
4. Widening Tariffs and Trade Restrictions
   Outlook: Nearshoring and friendshoring will balance resilience with cost in response to trade barriers and geopolitical tensions.
   Guidance: Reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks. Build regional supply networks for flexibility.
   
   
5. Energy Market Volatility and Sustainability Imperatives
   Outlook: Rising energy costs and regulatory demands will accelerate the shift to sustainable operations.
   Guidance: Invest in renewable energy and redesign supply chains to align with ESG commitments and compliance requirements.
   
   
6. Resurging Prices
   Outlook: The assumption that inflation is under control and interest rates will return to near-zero levels, as seen from 2008 to 2022, overlooks the possibility that tariffs could drive prices higher.
   Guidance: Continue to secure cost savings as your primary responsibility and contribution to the success of your businesses and stakeholders.

Essential Reading for 2025 Strategy
The GEP 2025 Outlook report offers an invaluable resource for procurement and supply chain leaders seeking to navigate challenges and leverage opportunities in a rapidly evolving landscape. The report explores these trends in detail, offering practical recommendations for driving agility, resilience, and sustainable growth.

Download the Full Report at GEP 2025 Outlook report.

About GEP

GEP^® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people - this is how GEP SOFTWARE, GEP STRATEGY and GEP MANAGED SERVICES together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world's best companies, including more than 550 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP's cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit http://www.gep.com/.

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