Report urges manufacturers to digitize procurement to cut costs and boost resilience

Organizations that fail to digitize and streamline procurement operations risk higher costs, reduced visibility and greater vulnerability to external shocks, according to new research from Info-Tech Research Group.

The global IT research and advisory firm says manufacturers face growing pressure from economic uncertainty, shifting trade policies and persistent supply chain disruptions, making efficient and resilient procurement more critical than ever.

“Procurement has evolved from a cost-control function into a strategic lever for competitiveness,” said Shreyas Shukla, principal research director at Info-Tech. “Manufacturers that embrace procurement technology are improving efficiencies and building the resilience needed to withstand supply disruptions, manage inflationary pressures and accelerate growth.”

In its new report, Power Resilience, Agility, and Savings With Manufacturing Procurement Technologies, Info-Tech identifies common barriers to modernization, including siloed data, legacy systems and inconsistent supplier tracking. The firm says these fragmented processes limit responsiveness to market changes and hinder efforts to meet cost and sustainability goals.

To address these challenges, Info-Tech outlines a seven-phase framework that helps manufacturers move from manual, fragmented processes to integrated, data-driven procurement systems. The roadmap emphasizes aligning procurement strategy with enterprise goals, selecting scalable digital tools, and measuring performance through analytics and key performance indicators.

“Procurement transformation has become foundational to manufacturing resilience,” Shukla added. “By implementing a structured, technology-enabled approach, manufacturers can reduce risk, strengthen supply chain agility and create lasting value for their organizations and stakeholders.”

The blueprint includes practical tools and frameworks designed to help manufacturers assess their current procurement maturity, identify technology gaps and sustain long-term improvements.