How is procurement evolving in Singapore?

Southeast Asia’s largest port, Singapore has long been known as a major global centre for logistics and trade.

However, despite this reputation, Singapore has not been immune to recent global supply chain challenges. This means procurement teams here, like anywhere else, face mounting pressure to deliver greater cost efficiencies and become more resilient and proactive.

Here’s how procurement leaders in Singapore are responding to these pressures, and how AI is shaping the future of the function.

Procurement challenges are increasing in Singapore

During SAP Taulia’s recent research, 68% of leaders surveyed said they had experienced more procurement-related challenges in the last year. While this is clearly a high proportion, it’s important to note that it is lower than the global result (72%) – and notably lower than some other regions such as the UK (74%) and France (73%). Local factors may play a role in these differences. Singapore is a stable trade and logistics centre with strong government support for building supply chain resilience and a high level of digital maturity.

Despite this, the sentiment in Singapore still shares some similarities with the rest of the world. The most cited challenge among respondents here was managing the impact of macroeconomic shifts (36%), which mirrors the results of other regions (UK: 37%, France: 34%, US: 35%).

A predictive evolution in procurement priorities

Over half (51%) of respondents in Singapore say their biggest priority today lies in optimizing their cash flow and reducing financial risk. This is also similar to findings from the US (49%), although only 42% of respondents in the UK and 35% in Germany shared this view.

Looking ahead, the top areas where respondents expect to make the greatest impact are ensuring compliance with regulations and internal policies (rising from 36% today to 47% in the future) and reducing overall business costs through supply chain efficiency (46% in the future vs 42% today).

The shift in priorities points to a progression from immediate, reactive financial management towards long-term operational resilience as procurement leaders in Singapore seek to strengthen their businesses amid persistent economic pressures.

How is AI used by procurement teams in Singapore?

In Singapore, the most popular task respondents use AI-powered procurement tools for is invoice processing and automation, cited by 41% of respondents. However, in the UK, the most popular task is forecast demand or pricing (40%), compared to risk monitoring and mitigation in the US (50%) and spend analysis and categorization in Germany (42%).

Procurement-specific AI tools are also widely used for risk monitoring and mitigation (39%) and preparing presentations or stakeholder briefings (38%) in Singapore. Meanwhile, the least cited task was supplier identification and evaluation (23%), which is an emerging opportunity for this region as AI advances rapidly in the coming years.

What are the priorities for AI investment and growth in Singapore?

The most cited priority from Singapore-based leaders is data analytics and business intelligence (43%). This compares to just 34% of respondents in the UK but 46% in the US, which shows how priorities vary across different regions.

The future of AI in procurement

In the future, the most cited area where Singapore procurement teams expect AI to have the greatest impact is developing procurement strategy or business cases (39%). Other key opportunities include spend analysis, risk monitoring, and contract management (all 38%). A common theme arises: procurement leaders in Singapore are looking beyond using AI for basic process automation, instead using it as a tool to make smarter, high-level strategic decisions.

While AI presents many opportunities, it is important to address the concerns too. Most (76%) of procurement professionals in Singapore are worried about the long-term impact AI could have on their functions, while about two in five (41%) fear procurement may be absorbed by other parts of the business due to this technology.

It is important to address these concerns, which are shared by procurement leaders in all global regions, and emphasise the benefits of adopting and scaling AI successfully. Our research shows that AI, when used appropriately, can be a powerful tool for improving productivity, efficiency, and resilience. One of the main advantages of AI is its ability to perform data-intensive, arduous tasks in a fraction of the time they would take humans.

The importance of building resilient procurement teams

Nikolaus Kirner, Chief Procurement Officer at SAP Taulia, says AI can help procurement teams move from being reactive to adopting a proactive approach, strengthening their ability to mitigate risk.

It can also strengthen interoperability between procurement, finance, and supply chain teams, which helps procurement leaders gain more visibility over their supply chain performance, working capital, and payment cycles.

Overall, AI is expected to play a significant role in the evolution of procurement in Singapore and the rest of the world.

Our research shows that its benefits go far beyond operational efficiency: it can also help procurement teams mitigate supply chain risks, strengthen operational resilience, and improve supplier relationships.

Procurement teams in Singapore that don’t embrace this technology risk falling behind as C-suite expectations for long-term value and resilience continue to rise.