As we close out 2024, it is time to reflect on the year’s developments in procurement, external workforce, business networking, and travel and expense management. The past year has been marked by economic uncertainty, supply chain disruptions and an increased focus on sustainability and social responsibility. Despite these challenges, businesses have demonstrated remarkable resilience and adaptability.
Looking ahead to 2025, several key trends are poised to reshape the landscape, promising both challenges and opportunities for forward-thinking organizations. To get a glimpse of what’s to come, we reached out to the heads of smart spending and business networks at SAP for their predictions.
The AI-powered shopping revolution
Etosha Thurman, director of marketing for Intelligent Spend and Business Network at SAP, envisions a future where artificial intelligence (AI) takes center stage in procurement:
“In 2025, AI and cloud-based solutions will put procurement at the heart of data-driven decision-making, enabling real-time insights and allowing teams to focus on high-impact initiatives. The future belongs to purchasing professionals who combine strategic thinking, relationship management and a combination of functional and technological expertise. These skills will be crucial to fostering cross-functional collaboration and advancing business goals, from supply assurance to compliance to sustainability. In the digital age, expertise in expense management extends not only to supporting, but also to managing the business.
This prediction highlights the critical role AI will play in transforming procurement from a support function to a strategic driver of business value.
Streamlining processes through orchestration
Manoj Swaminathan, president and product manager for Intelligent Spend and Business Network at SAP, highlights the growing importance of process orchestration:
“The technology landscape is evolving rapidly and organizations are grappling with a heterogeneous mix of solutions. Many companies now use multiple systems to meet their end-to-end business needs, leading to siled processes and employee confusion. Procurement, in particular, often suffers from fragmented systems that handle everything from purchase requisitions to supplier onboarding, creating inefficiencies and frustration.
To address this challenge, we are seeing a shift toward process orchestration – a centralized approach that connects disparate systems, streamlining procurement requests and status updates. Our latest solution, SAP Ariba Intake Management, can tackle this problem head-on by automating request creation and providing a single point of entry so organizations can enable employees to adhere to policies and regulations without the burden of manual corrections. This approach can not only save valuable time and resources, but also drive user adoption and increase compliance and efficiency, positioning businesses to thrive in an increasingly competitive landscape.
The emergence of a new generation of purchasing managers
Jeff Collier, chief revenue officer for Intelligent Spend and Business Network at SAP, predicts a significant shift in procurement leadership:
“In 2025, a shift will occur in the procurement landscape with a wave of new faces rising to the role of procurement director. AI-driven sourcing strategies, ever-changing requirements, and changing demographics have created the perfect storm for new leaders to emerge. As the industry stands on the brink of transformation, organizations must prioritize developing existing talent, upskilling their workforce, and attracting bright young professionals to the procurement function. The stage is set for young procurement leaders, who have proven themselves during the challenging COVID-19 years, to rise to the occasion, particularly those who can demonstrate tangible achievements in sustainability, integration of AI or risk management. Get ready for a year of new names, new perspectives and a reshaped procurement industry in 2025.”
The power of AI in enterprise networks
Val Blatt, Chief Revenue Officer of SAP Business Network, provides insight into how AI will transform enterprise networks:
“In the short term, AI is already making waves by optimizing process efficiency and information sharing within and between companies in a supply chain. Looking to 2025 and beyond, we will see AI do more to synthesize intelligence and efficiency in areas such as risk, demand and inventory planning, as well as manufacturing and delivery . This development becomes all the more relevant as no company does business alone and AI can synthesize and predict beyond company boundaries. We will see AI-based decision support evolve into decision-making – and, ultimately, automated process execution. These advancements will occur as the need for AI to detect and predict situations with proposed planning recommendations increases, covering all functional areas and related processes involving business partners in a supply chain.
In his Network Adoption Research Study*Sponsored by SAP, IDC found that “digital champions” who use modern cloud-based tools like AI, analytics and enterprise networks have seen their revenue and profit numbers rise increase by more than 140% between 2016 and 2021. As AI capabilities expand to predict, and execute across organizational boundaries, businesses will gain greater efficiency, visibility, and compliance. This will enable them to maintain a resilient supply chain that delivers on customer promises, particularly during times of disruption, by leveraging the collective intelligence of their entire business network.
The Evolution of Travel and Expense Management
Christopher Juneau, senior vice president and head of SAP Concur product marketing, smart spending and marketing and business network solutions, shares his thoughts on the future of travel and spending (T&E):
“As executives work to position their companies for growth in 2025, they will still attempt to keep employee spending at 2024 levels. Inflation has led to higher spending starting in 2023, leading to a decrease in travel in 2024. As inflation slows, many executives likely expect their travel and travel budget – even if it remains flat year over year – goes further in 2025.
Meanwhile, finance teams and travel managers will adjust their travel and travel policies to account for AI as more tasks and processes are automated. Will managers have to approve each expense report? Will they need to see them again? How can policies and rules be changed so that travelers spend as little time as possible in travel and travel tools? These are some of the questions they will start asking themselves in 2025.
Investments in technological innovation and security infrastructure will be the main priorities. The risks associated with security and privacy incidents will only grow, meaning businesses are looking for technologies that provide greater value to customers with less risk. It really is a balancing act to move quickly without neglecting the very important aspects of security and privacy when architecting solutions – internally and for customers.
Looking to the future
Looking ahead to 2025, it’s clear that the world of spend and supply chain management is on the cusp of transformative change. The convergence of AI, sustainability imperatives and interconnected business ecosystems will reshape the way organizations operate and compete.
At SAP, we don’t just observe these trends: we actively shape them, ensuring our customers are well-equipped to navigate the complexities of tomorrow’s business landscape.
The future may be uncertain, but one thing is clear: those who embrace these emerging trends and technologies will be best positioned to thrive in the dynamic world of 2025 and beyond. As we continue to design and deliver spend management and enterprise networking solutions that drive efficiency, leverage AI responsibly, and create greater visibility for businesses of all sizes, we look forward to to collaborate with our clients on this exciting journey of transformation and growth.
Cindy McKendry is Director of Smart Spending and Corporate Communications for Business Network at SAP.
*Source: “IDC Network Adoption Study eBook: Driving the Best Supply Chain Collaboration with an Enterprise Network», # US5084723, August 2023, page 18.