By the end of 2025, most procurement solution providers will disappear from the map – here is what you need to know as a practitioner

Either by absorption, acquisition or just plain going out of business, most procurement solution providers will not exist in their current form by the end of 2025. This statement is a hard truth that you, as a practitioner, must recognize and accept as not only a real possibility but likely an inevitability.

Those who have been in the industry for 30 years or more likely already know this, having seen the same script play out in the past, e.g., the dot com boom and bust.

Here are a few highlights from this past week that practitioners should know and how to respond:

1. Understand that an equation-based model creates never-ending dependency and initiative failure when the well runs dry. Think of having to pay a permanent chauffeur. An agent-based model provides business insight and understanding, leading to strategic client independence and initiative success. Think of the benefits of learning to drive yourself. You need to start being the driver of your own success by knowing the difference between the two.
2. Ask yourself how many solution providers are revising or abandoning their AI strategy to recognize what is happening behind the scenes.
3. Don’t trust case studies or glowing but generalized client references that refer to big-horizon objectives or sound like everyone else. Instead, drill down into the solution provider’s past, e.g., call former executives and critical knowledge workers. Also, be concerned if they don’t let you freely contact their existing clients.
4. If you still want to use case studies, ask for ones published 6, 12, and 18 months ago. Solution providers should be willing to provide these—if not, that is a warning sign to proceed with caution.
5. Conduct the “Demo Test.” Ask for a demo and then ask the person doing the demo how their solution actually and practically addresses YOUR specific challenges, not the general industry challenges. Note: If you can’t arrange a demo or get a PowerPoint presentation in its place, proceed with caution.
6. If a professional manager or executive runs the solution provider’s company, do the same – RUN! You are dealing with a balance sheet focus and professional product pusher who see you as the way to hit their numbers.
7. Finally, remember that your ultimate initiative success isn’t based primarily or solely on the technology but on the industry experience and expertise behind it and how said expertise complements your own. In short, solution providers should know your business better than their business and technology.

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