How Economic Volatility Is Reshaping Procurement Strategy in 2025

By tapping into the power of collective purchasing, you not only cut costs but also insulate your business from unpredictable price swings.

Global markets are more unpredictable than ever. Supply chain disruptions, inflation, labor shortages, and geopolitical tensions have become regular challenges that businesses must navigate. For procurement leaders, these complexities bring a mix of risk, uncertainties, and opportunities.  

To tackle these challenges, procurement strategies need a complete rethink. In this blog, we’ll break down how economic volatility is reshaping procurement in 2025 and share actionable insights to help you turn risk into opportunity. By the end, you'll see why having a partner like CoreTrust can make all the difference in navigating today's unstable markets with confidence. 

What Economic Volatility Means for Procurement 

In simple terms, economic volatility in procurement refers to unpredictable fluctuations in costs, demand, and supply caused by global economic conditions. Here are some real-world examples: 

• Tariffs and trade regulations driving up costs for everything from IT hardware to raw materials. 

• Wage pressures and rising labor costs cutting into profit margins. 

• Shipping and logistics delays causing uncertainty and cost overruns. 

• Inflation drives up material and operational expenses. 

These factors are forcing businesses to rethink how they manage supply chains and procurement strategies, calling for agility, better foresight, and smarter cost-stabilization measures. 

Why You Can’t Ignore Economic Disruptions 

Economic turbulence doesn’t just shrink budgets or cause delivery delays—it can have a serious ripple effect: 

• Missed Opportunities: Without stable agreements, competitors with predictable pricing models can steal market share. 

• Lower Profits: Rising costs that aren’t managed efficiently eat away at your bottom line. 

• Customer Frustration: Delays and supply chain issues impact your ability to meet demand, weakening customer trust. 

• Limited Agility: Companies stuck with rigid procurement setups struggle to adapt during a crisis. 

But here’s the good news: procuring during volatile times isn’t just about managing risks—it’s also an opportunity to gain a competitive edge with smarter tactics. 

How to Adapt Procurement Strategies in 2025 

To stay ahead in 2025, businesses need proactive, forward-thinking, and flexible procurement strategies. Here are a few key tactics to prepare your business for economic uncertainty: 

1. Build Resilience with Strategic Partnerships  

One of the most reliable ways to overcome economic turbulence is by partnering with group purchasing organizations (GPOs) and forming strategic alliances. For instance, CoreTrust pools $7B+ in annual spend from 3,500+ members to deliver: 

• Pre-negotiated contracts with built-in price protections. 

• Supplier agreements designed to absorb market shocks. 

• Cost stability across volatile categories like IT, shipping, and labor. 

By tapping into the power of collective purchasing, you not only cut costs but also insulate your business from unpredictable price swings. With pre-negotiated contracts, you gain access to competitive pricing and a safeguard against market-driven volatility. 

2. Prioritize Predictable Pricing Contracts  

To counter price volatility, many leading procurement teams are locking in fixed or capped pricing where possible. Working with partners like CoreTrust equips companies with pre-negotiated agreements designed to reduce surprises from volatile markets. 

3. Leverage Advanced Data Analytics  

Data is your strongest ally in volatile times. AI-driven analytics tailored for procurement, like the CoreTrust Experience Platform (CXP), can: 

• Identify emerging price trends in global markets before they impact your bottom line. 

• Recommend alternative suppliers based on dynamic risk assessments. 

• Forecast spend more accurately for long-term planning. 

A proactive data program builds agility, empowering procurement teams to make informed adjustments on the fly. 

4. Expand Vendor Diversification  

Relying too heavily on a single supplier or region has become unsustainable. Businesses must diversify to ensure supply continuity. This includes: 

• Expanding relationships to include geographically diversified vendors. 

• Building redundancy in critical supply chains instead of centralizing operations. 

CoreTrust members benefit from accessing a broad supplier network, reducing sourcing risks while maintaining cost-efficiency. 

5. Focus on Supplier Relationships  

Economic uncertainty strains partnerships, making collaboration and trust with suppliers more critical than ever. Strong relationships provide: 

• More negotiating power for better contract flexibility. 

• Crisis support during high-demand periods. 

• Shared visibility into inventory and logistics data for better planning. 

Engaging with suppliers through your GPO also encourages stronger alignment between business goals. 

6. Build Flexibility into Your Procurement Ecosystem  

Flexibility is non-negotiable in 2025. From procurement automation systems to agile shipping routes, your tools and operations need to adapt quickly to changes. Pivoting to CoreTrust categories has helped members respond rapidly to cost uncertainties without disrupting operations. 

7. Train for Resilience  

Finally, investing in training programs for teams ensures they understand how to integrate tools, interpret data, and manage disruptions confidently. Procurement staff equipped with the right skillsets can more effectively execute short- and long-term strategies. 

CoreTrust: Your Partner in Uncertain Times 

At CoreTrust, we understand that for procurement leaders, surviving and thriving in volatile markets requires more than cost-saving. It demands stability, agility, and confidence. That’s why we offer more than savings: 

• Cost Predictability - Our pre-negotiated agreements shield you from surprise surcharges. 

• Agility - Gain access to an extensive supplier network and quickly pivot during disruptions. 

• Expertise - Work directly with Account Executives who guide you through tariff impacts and vendor cost increases. 

Don’t just stabilize. Optimize. With CoreTrust, businesses like yours gain competitive advantages in uncertain economies. 

A Brighter Outlook for Procurement 

The procurement landscape is transforming rapidly, and strategies that worked pre-2020 may no longer suit today’s volatile economic climate. Forward-thinking leaders and organizations understand the importance of evolving their approach. By fostering strategic relationships, diversifying suppliers, and leveraging advanced tools, procurement teams can thrive in any environment. 

Are you ready to turn economic volatility into your competitive edge?  

Learn how CoreTrust helps mitigate unpredictable costs and ensures cost certainty for 2025.