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Issue # 10 · 04th February 2025 Web version

đź“Ž The Procurement Space Weekly

📬 New blog post: Mastering Cost Analysis in Procurement -  Effective procurement goes beyond the sticker price—factoring in transport, storage, and supplier risks. Understanding total costs helps secure better deals and smarter long-term decisions.

TPS Admin



đź“° Procurement news

General:

Getting the Best Out of AI with Your Prompts -  To get the best results from AI models, it's essential to write clear and specific prompts. Ensure your instructions are precise, use correct grammar and spelling, and provide relevant context. Being polite can also enhance the quality of responses. Remember, the more detailed and clear your prompt, the better the AI can assist you.

Oscar Quine

AI Creativity: Don't Fear the Robot Overlords -  Despite widespread worries about AI seizing control of creative industries, the reality is more measured. AI-generated works without human input lack copyright protection, underscoring that human creativity remains indispensable. Rather than heralding a takeover, AI is best seen as a tool that complements—and is ultimately subordinate to—human ingenuity.

Andrei Iancu & David Kappos

Supply Chain Shortages in 2025: Geopolitics and Weather Fuel Uncertainty -  Geopolitical tensions and extreme weather are set to disrupt supply chains this year. Tariffs on key trade partners could push up costs, while climate events are already straining materials supply, particularly in construction and automotive industries.

Alejandra Carranza

Paper and Pulp Industry Outlook 2025: Steady as She Goes -  After a turbulent 2023 with declining demand, 2024 saw recovery in most paper and board sectors. The industry is expected to stabilise in 2025, returning to more typical growth rates. Factors influencing paper prices include raw material costs, energy, labour, transportation, and supply-demand dynamics. Packaging and tissue segments are anticipated to perform well, driven by evolving consumer demand. Macroeconomic elements like high interest rates and geopolitical tensions may also impact the market.

EMGE

IT & Software

Banks Can't Outsource Cloud Risks -  Banks are increasingly adopting cloud services, but they must remember that while they can outsource tasks, they can't outsource the associated risks. Regulators expect robust third-party risk management frameworks to be in place. It's essential for banks to ensure that their contracts with cloud providers clearly define responsibilities and maintain strong oversight to manage potential security breaches effectively.

Walt Williams

Rethinking IT Procurement in the NHS -  Steve Haskew of Circular Computing argues that the NHS's traditional IT procurement approach is unsustainable. He advocates for adopting remanufactured IT equipment, which offers cost savings and environmental benefits without compromising quality. This shift could help the NHS manage tight budgets while supporting sustainability goals. What do you think?

Steve Haskew

IT Leaders Struggle with Sustainability—Is It Just Lip Service? -  A recent Barco ClickShare survey reveals that while 98% of IT leaders have set sustainability KPIs, many encounter obstacles such as leadership indifference and challenges in integrating sustainable solutions. Over half feel unsupported in their efforts, with 44% citing integration complexities and 37% pointing to a lack of information on sustainable options. Additionally, 94% of IT purchasing decisions require multi-stakeholder approval, including C-suite involvement in 49% of cases, yet only 15% believe top executives prioritize IT sustainability.

Business wire

Scottish Cloud Provider Applauds UK Government's Microsoft Deal -  A leading Scottish cloud services supplier has welcomed a five-year technology agreement between Microsoft and the UK Government, viewing it as a significant opportunity to enhance public sector digital services. The deal aims to provide public sector organisations with access to Microsoft's AI-powered products and services, potentially driving innovation and efficiency across various departments.

Kevin O'Sullivan

Marketing:

Media Inflation Predicted to Rise in 2025 and 2026 -  The World Federation of Advertisers forecasts increased media price inflation in nine of the top ten global markets for 2025, with the US rising from 2.1% in 2024 to 2.3% in 2025. India is expected to see significant increases, reaching 9.6% by 2026.

Mxiq

🎥 Netflix Teases 2025 Lineup: Are We Really Ready? -  Wieden+Kennedy Portland and directing team Megaforce have dropped a dramatic teaser for Netflix’s 2025 slate, claiming “we’re not ready” for what’s coming. With major finales like Stranger Things and Squid Game on the horizon, Netflix is setting the stage for a blockbuster year.

Netflix

Energy

UK’s Heat Network Plans: £95bn Investment or a Repeat of Past Mistakes? -  The UK is pushing heat networks to decarbonise heating, with up to £95bn in potential investment. Like the district heating systems seen in former communist countries, the idea is to provide efficient, centralised heating to multiple buildings. But while those systems were state-controlled, the UK’s version leans on private investment—raising concerns that profit-driven motives could take precedence over long-term efficiency and affordability. After decades of privatised utilities struggling to deliver, will this be a smart step toward Net Zero or just another example of putting business before people?

James Evison

Pod Point Enters Energy Flexibility Market Under P415 -  James with another! Pod Point is now selling energy in wholesale markets under the P415 regulation, making EV charging smarter and more rewarding. With access to the biggest flex market, they aim to boost grid stability and Net Zero goals—now if only finding a working charger was this easy!

James Evison

Vattenfall CEO Champions Sustainable Energy Infrastructure -  Under CEO Anna Borg, Vattenfall is advancing Europe's energy transition by developing offshore and onshore wind farms. The company achieved a milestone with the inauguration of the Hollandse Kust Zuid offshore wind farm in the Netherlands, the world's first modern subsidy-free offshore wind project. Borg emphasizes the importance of collaborations in driving the energy transition forward. Despite challenges like rising costs and supply chain constraints, Vattenfall remains committed to investing in fossil-free projects that align with its sustainability goals.

Sean Ashcroft

Food & Beverage:

FSMA Rule 204: Catching Up to Europe on Food Transparency -  Coming in 2026, FSMA Rule 204 mandates stricter food traceability, requiring companies to track key data points across the supply chain. While a big step for the U.S., Europe has long led the way in supply chain transparency—raising the question: is the U.S. playing catch-up?

Liz Serti

RFID: Revolutionising Food Retail -  RFID is helping food retailers by improving inventory tracking, cutting waste, and boosting supply chain efficiency. Unlike when you awkwardly tap your phone on a card reader five times before it works, RFID in retail actually makes operations smoother and more reliable.

Food Bev media

Food Prices Remain a Concern—Will 2025 Bring Relief? -  The Food Standards Agency's Consumer Insights Tracker reported that in March 2024, 87% of consumers were concerned about food prices, with 22% worried about affording food in the coming month. Looking ahead, industry forecasts suggest that food inflation could reach nearly 5% in 2025, driven by increased production costs and economic factors. This raises the question: will consumers face continued financial strain at the supermarket, or will measures be implemented to alleviate these pressures?

Food Bev media

Diageo Partners with Castel, Sells Guinness Ghana Stake -  Diageo is shifting to an "asset-light" model in Africa, selling its 80.4% stake in Guinness Ghana Breweries to Castel Group for $81m. The deal allows Diageo to focus on brand ownership while partnering with local operators for production and distribution. Guinness will continue to be brewed under licence in Ghana.

Siân Yates

In brief:

From MEAT to MAT: Redefining Value in Procurement -  The UK's Procurement Act 2023 introduces a shift from the 'Most Economically Advantageous Tender' (MEAT) to the 'Most Advantageous Tender' (MAT). This change allows contracting authorities to consider a broader range of factors beyond just cost, such as social value, environmental impact, and community benefits, when awarding contracts. The aim is to encourage procurement decisions that deliver lasting positive outcomes for communities and the environment, rather than focusing solely on the lowest price.

Sarah Fraser

Penny Software: A Game-Changer for Housing Procurement -  Penny Software is shaking up the housing sector with its digital platform, streamlining procurement processes and boosting efficiency. It promises to simplify supplier management and contract handling in an industry that's long overdue for a modern touch.

Aaron McMillan

Icertis Optimises Procurement with AI -  Icertis is now deploying AI agents to streamline procurement processes. This innovative approach automates routine tasks, enhances compliance, and provides deeper insights, allowing procurement teams to focus more on strategic decision-making.

Sophie Rice


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