#9 - AI, Inventory Under Pressure & The CPO of a Corporate Giant

Today, we’re diving into market reports and inventory management, along with a behind-the-scenes look at how the Chief Procurement Officer of a 30,000-employee company tackles global procurement challenges, turning complexity into strategy through strong supplier partnerships.

Procurement in 2025: Between AI Dreams & Cost Pressures

In 2025, procurement teams will have to walk a tightrope between innovation and operational survival. Here’s what the latest "State of Procurement" report from Amazon Business (based on insights from 3,500 global business leaders, including Italy) reveals:

• AI: Lots of hype, little execution. While 93% of companies claim to be investing in AI, actual adoption has grown by just 2%. AI is primarily used for spend analysis (38%) and predictive analytics (23%), but its full potential remains untapped. (Shameless plug: luckily, there’s compri.ai!)
• Rising costs: 34% of Italian procurement managers are already feeling the heat from increasing costs of goods and services, and 2025 won’t be any easier. Despite larger budgets (54% expect to invest more), margins are under constant pressure.
• ESG is plummeting: Only 17% of companies consider sustainability a priority for 2025, compared to 52% in 2024. While 55% have set ESG targets, turning them into action remains a major challenge. (For guidance on the latest regulations, check out our guidelines).

Unsolicited commentary from the sidelines: The data checks out. The real question is—what corrective actions are procurement teams putting in place to manage all of this? The answer remains unclear, but one thing’s for sure: flying blind won’t cut it in a year like the one ahead.

Source: Il Sole 24 Ore

The tragic tale of a Procurement Manager: struggling to hit 2025 targets, only to end up doing everything manually… 🥶

🧮 Farewell to Infinite Stock: The New Era of Supply Chain Risk Management

The numbers speak for themselves: The era of “infinite inventory” is officially coming to an end.

More and more companies are moving away from stockpiling strategies (which seemed like a lifesaver during COVID) in favor of leaner, more strategic inventory management.

According to the McKinsey Global Supply Chain Leader Survey:

• Only 15% of leaders plan to increase stock levels in the next three years.
• 35% will maintain steady inventory levels.
• A whopping 50% (yes, half!) aim to reduce stock below pre-pandemic levels.

This can only mean one thing: efficiency and agility in risk management are becoming the new supply chain KPIs.

Why is this happening?

The pandemic taught us that more inventory doesn’t always mean fewer problems. Managing massive stockpiles is expensive and kills working capital (Finance teams, take note!).

The theory now is that, with advanced monitoring systems and greater supply chain transparency, companies can eliminate excess stock and focus on agile planning instead.

Key takeaway for procurement managers?

Having a warehouse full of stock won’t help you sleep better at night—having data, a strategy, and a solid backup plan will. 💼📊

Source: McKinsey Global Supply Chain Leader Survey 2024 | McKinsey

Today’s episode features an interview with Laura Colli, Chief Procurement Officer at Prysmian, where she reveals what it takes to manage procurement at a 30,000-employee corporation.

From global procurement challenges to geographical and cultural differences shaping purchasing strategies, she breaks down what remains constant across industries—like the art of relationship-building for buyers.

At the end of the day, the secret to success is always the same: those who win are the ones who turn suppliers into true strategic partners—going beyond traditional negotiations to build long-term, mutually beneficial relationships.