Are we at the beginning of a procurement industry “brain drain?”

Recently, I have heard industry influencers and thought leaders—including analysts—talk about leaving procurement—or, as one notable pundit said, “I am putting procurement in my rearview mirror.” I want to be clear: At this stage, it is not a large number, but what is significant is that I have never heard this kind of talk before.

Some of the reasons for this growing frustration and potential migration is that working with solution providers is becoming increasingly challenging for many reasons, including:

• Denying direct access to the clients in their case studies for independent verification.
• The steady decline in the availability of working demos – PowerPoints don’t count.
• Peddling client logos, e.g., free or low-cost access to their platform in return for posting their logo on their website. Have you ever counted the number of times the same company logos seem to pop up on solution providers’ websites?
• Trying to either control or unduly influence an unbiased expert narrative.
• Trying to block you from contacting executives or former executives directly.
• Resistance to answering too many questions beyond the approved CMO, PR, and Sales industry speak.
• Orchestrating infomercials by way of self-congratulatory posts, webinars, and podcasts.
• Perhaps the biggest one is that, according to virtually every provider, the Generative AI boom is delivering amazing success to ALL clients, while Gartner and Kearney are reporting that 80% plus of all initiatives fail, with a healthy percentage being abandoned outright by clients.
• Having to remain quiet about solution providers taking a step back or shelving their AI strategies.
• The at-times desperate focus by solution providers meeting quarterly sales targets at the expense of building the proper rapport and relationship with client practitioners.
• What is also disconcerting is that many of the players and those heading up the provider companies have limited, if any, procurement industry experience and expertise.

Of course, by asking these questions, do we risk cutting off our revenue stream?

But if we don’t ask these questions, then what good is our experience, expertise, and, ultimately, our advice?

Here Is My Take

One thing is certain: far too often, rose-colored glasses are still being handed out as the car heads toward the cliff of yet another “bubble burst” in 2025.

All this being said, there is still a solid yet finite core of solution providers who choose their clients wisely and walk away from those they know have little chance of success. The 2025 sifting event will be challenging, reducing the number of providers by 75%. However, by “thinning out the herd,” practitioners and providers can build success through better communication and collaboration and the widespread adoption of the agent-based implementation model.

Takeaway: Procurement’s success is not a technology play – procurement success is people and process-driven.

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