THE 2026 PROCUREMENT FORECAST: WHAT LIES AHEAD

By GROUP CPO

We spoke to a number of CPO’s here in Australia, and here is what we learnt about what lies ahead:

 1. The rise of the ‘adaptive operating model’

Static, centralised or decentralised models no longer the only options. 2026 will see:

• More fluid team structures

• Flexible pods “borrowed” by major initiatives

• Cross-functional commercial squads

• Embedded procurement leads in business units

Procurement operating models will become modular, agile and dynamic, reflecting the pace of enterprise change.

2. Commercial value skills will matter more than category expertise.

CPOs consistently expressed the same capability gap:

• Storytelling

• Executive influence

• Financial modelling

• Negotiation psychology

• Strategy formulation

Although technical category skills remain critical, commercial leadership skills will define the next generation of CPOs.

This is the time for investment in capability uplift and talent transformation.

3. By mid 2026, AI will become a negotiating counterparty

This will include:

• AI-generated negotiation strategies

• AI-led contract redlining

• Market simulations predicting supplier behaviour

• Autonomous procurement for low-value spend

However with this shift people must still lead:

• Relationship management

• Ethical judgement

• Innovation co-creation

• Trust building

AI won’t replace procurement (except maybe some poor procurement) but will support procurement.

4. Supplier ecosystems will replace supplier lists

The supplier landscape is shifting.2026 will bring:

• Multi-tier transparency

• Integrated data ecosystems

• Digitally verified supplier networks

• Shared risk platforms

This enables procurement to shift from “who we buy from” to “who we partner with to deliver enterprise outcomes.”

5. ESG will move from reporting to real impact.

Procurement must move beyond compliance and into transformation:

• Supplier decarbonisation pathways

• Circular sourcing embeds

• Indigenous and social procurement uplift

• Sustainable contract clauses

• Supplier education programmes

Boards will expect procurement to be a driving force, not just a reporter.

6. The procurement leader will evolve into the Chief Value Officer

The new mandate is “shape value, protect value, grow value.”

The CPO role will expanding into:

• Strategy

• Risk

• Innovation

• Investment

• Sustainability

• Commercial operations

This shift, will see those CPO’s roles elevated in the organisation.

HOW TO PREPARE FOR 2026

Across various interviews, search discussions and market conversations, the message was similar: CPOs in 2026 need to lead boldly, communicate clearly and transform continuously.

The most successful will:

• Invest in their talent

• Use AI as a multiplier, not a shortcut

• Build deep stakeholder understanding

• Strengthen supplier collaboration

• Measure value far beyond savings

• Position procurement as a strategic engine

CPO’s need to champion leadership behaviours that will amplify procurement’s impact: confidence, clarity, presence, influence and vision.

We spoke to one CPO who said: “Procurement isn’t changing. It has already changed. The question now is: have we?”

If you are looking for procurement leaders to shape and build your team then please reach out to Nita Arora-Parkes on info@groupcpo.com