ORO Labs Report: Large Enterprises Divided as 25% Loosen Supplier Risk Standards While Others Tighten Under Pressure

Global survey of 200+ executives shows rising pressures, disconnected systems, and lagging AI readiness are straining procurement’s ability to move fast and manage risk.

SAN FRANCISCO--(BUSINESS WIRE)--ORO Labs, the market’s leading enterprise-grade intake management and procurement orchestration platform, has released its inaugural 2025 State of Enterprise Procurement Agility Report. The research, based on a global survey of more than 200 executives at enterprises with $500M+ in annual revenue, reveals procurement teams are under growing strain as tariffs, inflation, and supplier volatility collide with shrinking teams and disconnected systems that slow their ability to respond.

According to the report, nearly half of procurement executives surveyed say pressure on their function is higher than usual, with 16% calling it the most intense period in the past three years, and one in four admit they’ve loosened supplier risk standards to keep pace.

“Procurement leaders are being asked to move faster while their teams are getting smaller and their systems are holding them back,” said Sudhir Bhojwani, Co-Founder and CEO of ORO Labs. “Tariffs are forcing rapid supplier turnover, but most large organizations are still running on disconnected tools and IT bottlenecks that make it harder to respond. Adding more technology to the stack hasn’t fixed the problem. What procurement needs is a connected system that harnesses agentic AI to create streamlined and autonomous workflows: one that gives leaders clear visibility, the flexibility to adapt quickly, and the confidence to make the right calls under pressure.”

The 2025 State of Enterprise Procurement Agility Report uncovers a function that’s accelerating under pressure but constrained by outdated, fragmented systems that can’t match today’s pace or complexity. Additional key findings include:

• Procurement executives are divided on risk. Alarmingly, while 24% of executives surveyed say they’ve tightened risk requirements by adding stricter vetting or compliance checks, 25% say they’ve done the opposite – increasing tolerance for risk by working with suppliers who may have lower credit ratings or limited documentation.

• Tariffs are forcing supplier churn and it’s a top concern for procurement. Eighty-six percent of procurement executives have either onboarded or offboarded suppliers in direct response to tariffs this year or expect to do so in the next three months. While 16% say they could replace a key supplier in under a week, nearly a third of all executives surveyed still cite the loss of a key supplier as a top concern.

• Teams are shrinking as expectations climb. While 30% of respondents say their procurement teams have increased in size, 38% report shrinking teams, even as 39% of these say their budgets have increased. Rather than investing in people, many organizations are deploying technology to offset the loss of capacity and keep up with growing demands.

• Tool sprawl, low ROI, and IT bottlenecks are stalling agility. Sixty-four percent of survey respondents use 10+ procurement tools, but only 8% say the majority of those tools deliver expected ROI. More than half (57%) need IT support for anything beyond small changes, while just 28% can adjust systems without technical help.

• AI adoption is accelerating, but readiness lags. Eighty-five percent of procurement executives say they’re piloting or using AI, with nearly three-quarters (73%) already deploying AI agents. Yet, only 49% clearly understand how agentic AI works, and just 39% report providing formal AI training across their teams.

The report underscores how quickly procurement is being pulled in different directions: loosening or tightening supplier risk, switching suppliers, shrinking teams, and experimenting with AI. What leaders need now isn’t another short-term fix, but a way to bring order to the chaos. Orchestration makes that possible by connecting the pieces so procurement can keep decision-making fast, risks in check, and teams ready for whatever comes next.

Survey responses were collected by Prodege, an independent provider of customer insight data, from more than 200 procurement executives at enterprises with $500M+ in annual revenue across the U.S., U.K., Europe, and Canada. For more insights and the full survey results, download the 2025 State of Enterprise Procurement Agility Report here.

To learn more about ORO Labs, visit: https://www.orolabs.ai/

About ORO Labs

ORO Labs is a procurement orchestration company on a mission to humanize the procurement experience by coordinating teams, systems, and processes so employees get what they need without frustration. ORO’s AI-powered no-code platform is purpose-built to deliver effortless user experiences that enable businesses to reduce cycle times, decrease risk through end-to-end process visibility, and increase agility in response to change. ORO is trusted by Fortune 500 companies and fast-growing global organizations to automate processes, improve cross-team collaboration, and scale procurement operations. To learn more, visit orolabs.ai.