A presentation at 2025 CPG Trends Shaping Category Management Success in in New York, NY, USA by Marcel Johnson
The 2026 ISG Procurement Report Roadmap: Implementation Tactics for CPOs The roadmap centers on actionable tactics to enhance value from procurement functions, emphasizing data-driven decision making, supplier ecosystem resilience, and integrated business alignment. It underscores the shift from tactical sourcing to strategic procurement that partners with finance, operations, and technology to drive enterprise growth. This alignment is a core premise of modern procurement leadership. Implementation Tactics for CPOs Establish a value-driven operating model Design an operating model that integrates category management, supplier relationship management, and governance with clear accountability. This structure supports rapid decision making and durable performance improvements. Embed advanced analytics to reveal cost-to-serve, total cost of ownership, and value leakage across the source-to-pay cycle. Digital transformation and data integration Accelerate end-to-end process digitization, linking internal data with external market signals to enable real-time insights and proactive risk management. Leverage AI-enabled tools for contract analytics, spend visibility, and supplier risk scoring to strengthen decision quality and resilience. Supplier ecosystem resilience Diversify supplier bases and build agile sourcing protocols to mitigate disruptions and preserve supply continuity under dynamic conditions. Implement digital supplier collaboration platforms that improve transparency, performance tracking, and risk mitigation across networks. Value-led performance management Move beyond price-focused metrics to holistic performance indicators such as value realization, cycle time reduction, and contract compliance, ensuring isg procurement report outcomes align with broader business goals. Align procurement incentives with enterprise value, including cross-functional metrics that reflect collaboration with finance, operations, and engineering. Talent and capability growth
Invest in skills development for analytics, negotiation, and change management to sustain continuous improvement. Foster a culture of experimentation where pilots in AI, automation, and digital procurement yield scalable business benefits. Risk, Governance, and Compliance Strengthen governance around data quality, privacy, and ethical use of AI in procurement processes, ensuring that algorithms support fair supplier practices and regulatory compliance. Establish clear risk appetite statements and monitoring dashboards to detect early warning signals of supplier distress or market volatility. Measurement and Outcome Focus Define a robust benefits registry capturing cost savings, value creation, and process efficiencies, with quarterly reviews to track progress and recalibrate strategies. Use scenario planning and should-cost models to quantify potential outcomes under different market conditions, guiding proactive decision making. Context and Reference The strategy presented aligns with broader industry guidance on transforming procurement into a strategic, AI-enabled function that drives enterprise value. For further context on how providers and transformation approaches shape procurement BPO and digital transformation, the ISG Provider Lens framework remains a useful reference point.
2025 brings major CPG changes—AI adoption, hybrid manufacturing, and new geopolitical risks. Find out what they mean for your category strategy today.
