Looking Ahead: A 2025 Outlook for the Asia Pacific Supply Chain Industry

By Anthony Larratt, Managing Director – Asia Pacific at JAGGAER

Geopolitical challenges, elections across several countries, technological innovation, and climate events were just a few of the factors shaping supply chains and procurement last year – and 2025 is expected to be no different.

Agility will be essential for stakeholders in the Australian and wider Asia Pacific region procurement and supply chain sectors as they adapt swiftly to an ever-changing landscape. As global businesses continue to face uncertainty in the supply chain, procurement leaders must stay ahead of the trends poised to disrupt procurement in 2025. Here, we explore key considerations:

Navigating Tariffs and Conflict

With ongoing international conflicts and the threat of rising tariffs and counter-tariffs affecting global supply chains, robust risk management has never been more critical. Companies are increasingly aware of the vulnerabilities in their supply networks that can be exposed by geopolitical, economic or environmental disruptions.

To mitigate these risks, procurement leaders must be equipped to forecast potential vulnerabilities across the entire supply chain, leveraging technology and supplier relationship management to enhance transparency and resilience in the event of a rapid pivot.

Cost Savings and Capital Management

In light of the global economic slowdown, managing costs remains a key concern. Companies will need to leverage technology to automate processes and reduce operational costs, while also identifying opportunities for strategic sourcing.

Investing in advanced analytics will allow procurement teams to identify cost-saving opportunities across the supply chain, pinpoint inefficiencies, optimise supplier performance, and negotiate more favourable contract terms.

Supplier Relationships Management

The importance of transparent communication and trust between businesses and suppliers has never been more apparent. Developing strategic partnerships with suppliers can lead to better risk-sharing, more reliable deliveries, and greater innovation. This collaborative approach will also contribute to sustainability goals by facilitating joint efforts to reduce emissions and promote ethical production practices.

Cyber Security

As businesses rely more heavily on digital platforms, cloud-based systems, and interconnected supply chains, exposure to cyber threats has increased. Securing sensitive information will not only protect against external threats but also foster trust among stakeholders and partners.

Artificial Intelligence

From automating routine tasks to enabling predictive analytics for demand forecasting, AI can significantly boost efficiency and support smarter decision-making. However, the integration of AI will require procurement leaders to ensure that their teams possess the skills to interpret AI-generated insights and apply them effectively. This shift will require substantial investment in AI tools and platforms capable of supporting large-scale data analysis.

Transparency

The success of AI initiatives depends heavily on data quality and transparency. As companies use AI to guide procurement decisions, they will face increased scrutiny over how data is collected, analysed, and applied. However, businesses should embrace these requirements, as the benefits of AI—such as automating time-consuming manual processes, improving accuracy, and enhancing user satisfaction—will enable procurement to play a more strategic role in driving company growth.

Sustainable Procurement

Sustainability remains a cornerstone of procurement strategy. For many organisations, Scope 3 emissions—those indirectly generated by the supply chain—constitute the largest part of their carbon footprint. To address this, procurement teams must work closely with suppliers, establish efficient communication channels, adopt eco-friendly practices, and focus on responsible sourcing of raw materials, while also minimising energy consumption.

The supply chain landscape is poised for significant transformation by 2025, driven by the interplay of technological advancements, international tariffs, regulatory pressures, and sustainability imperatives. Procurement departments that proactively adapt to these trends will be better positioned to build resilient, efficient, and responsible supply chains.