Hi {{FIRST_NAME|readers}},

2 key points stood out to me from this month’s top story:

  • 91% of ProcureTech vendors now claim "Gen AI capabilities"... but true “Agentic AI” functionality is still rare.

  • Procurement functions building sustainable advantages with “AI” aren't buying into every shiny new feature. In fact, they’re not really thinking about an AI strategy at all to be honest… They're identifying their most valuable business problems and being ruthlessly selective about which vendors they explore to move the needle… If that’s AI-based, so be it. If it’s not, doesn’t matter. They just want the problem solved.

As for the rest of the stories, the takeaways are below!

Onwards!

How the Monthly Top 5 Works…

Every month, I comb through 1000+ articles across 40+ sources to bring you the best free procurement articles on the web.

My picks are based on what I feel is the most concrete, actionable and useful content I came across that month.

I sort through the noise so you don’t have to.

📰 In this month’s edition:

  • No. 1 - Vendors Claim AI Capabilities, But Most Are Just Fancy Chatbots

  • No. 2 - Why Customer-Centric Supply Chains Fail (It's Not Execution)

  • No. 3 - Why Your Materials Forecast Is Always Three Months Behind

  • No. 4 - Expedia Ditched Transformation Theater for Real Results

  • No. 5 - The Negotiation Signal That Makes Them Feel Like They Won

Let’s dive in!

Note: Some of the content above is only available in the email version of this newsletter. Don’t miss out! Sign up for free to get the next edition.

No. 1 🥇

Everyone Has Gen AI Capabilities but True “Agentic AI” Is Still Rare

Spend Matters' Fall 2025 SolutionMap reveals an interesting fact: 91% of 100 procurement vendors included in the SolutionMap now claim GenAI capabilities.

However, real “Agentic AI” functionalities (systems that independently plan and execute multi-step workflows) remain rare. Most "AI agents" in ProcureTech are rebranded automation tools with “goût du jour” marketing on top.

The reality? Truly Agentic Systems are coming but they will require changes to data governance, data readiness and underlying tech stacks to be successful… This is important to consider when thinking about timelines.

  • The Bottom Line: The “AI revolution” is about role redesign and increased output capacity per person, not replacement. Winners aren't chasing features, they're identifying which AI subdomains are optimal to solve different procurement use cases.

  • Action Item: Access to high quality data is an important key to unlocking “Agentic AI”. Audit your system stack with skepticism. Can you access every fields in every application easily via API? Is there data governance around key pieces of data to ensure consistently high levels of quality?

👀 In Case You Missed It…
My Best Linkedin post of the month:
25 Procurement Technology demos. All in one place. All free to access.

No. 2 🥈

Why Customer-Centric Supply Chains Fail (It's Not Execution)

Supply Chain Movement's new mindmap exposes why "customer-centric" transformations crater: misaligned departmental incentives. Finance battles price erosion. Sales juggles omnichannel chaos. Marketing needs personalization. R&D demands speed. IT patches legacy systems. HR can't hire fast enough.

Supply Chain sits in the middle trying to balance volatile demand, supplier bottlenecks, and delivery pressure. Everyone optimizes their own KPIs while the chain fragments.

  • The Bottom Line: Customer-centricity fails because of misaligned incentives, not poor execution. Winners build control towers with real-time visibility, implement activity-based costing to expose true cost-to-serve, and ruthlessly segment customers to match service with profitability.

  • Action Item: Download the mindmap. Map which departments pull in conflicting directions. Pick one high-impact customer segment where Finance, Sales, and Supply Chain can align on shared KPIs. Prove the model there first.

👀 In Case You Missed It…
The 2025-26 ProcureTech Cup Season is here! Watch the first episode of Road to the ProcureTech Cup here.

No. 3 🥉

Why Your Materials Forecast Is Always Three Months Behind

Most manufacturers forecast materials only a few times yearly. By the time Finance and Procurement align on assumptions, markets have shifted. Finance owns consolidation. Procurement owns market intelligence. Different datasets. Different timelines. Zero real-time validation.

The result? Commodity prices spike 30%, but your three-month-old forecast shows flat costs. Revenue-side planning has mature tools and rolling forecasts. The cost-side? Spreadsheet hell.

  • The Bottom Line: This isn't a data problem, it's governance. Organizations moving to continuous forecasting with shared accountability make faster decisions with fewer surprises. The key isn't perfection, it's shortening the cycle from insight to action.

  • Action Item: If you're updating quarterly, you're flying blind. Push for continuous forecasting tied to sourcing calendars. Clear ownership: Finance owns end-to-end output, Procurement owns category assumptions and market intelligence.

👀 In Case You Missed It…
I recently made an appearance on the Procurement Story Podcast:
We talked AI, transformation, and why ignoring it means being left behind.

No. 4 🏅

Expedia Ditched Transformation Theater for Real Results

Procurescape's interview with Expedia reveals their approach: stop talking "transformation," start talking business enablement. They identified mission-critical activities, segmented by complexity, and deployed resources accordingly.

The shift? Procurement is measured by business outcomes like launching products faster, increasing revenue, and satisfying customers. Not savings percentages or cycle times.

  • The Bottom Line: When you answer "yes" to "Are we launching products faster?" and "Are we increasing customer satisfaction?", that's when you earn a seat at the table.

  • Action Item: Identify 2-3 C-suite metrics your executives actually care about (revenue growth, time-to-market, retention). Reverse-engineer how procurement moves those numbers. Rebuild your KPIs around those priorities.

No. 5 🎖

The Negotiation Signal That Makes Them Feel Like They Won

When you shift from monetary to non-monetary terms during a negotiation it signals to the other party that you have hit your price limit. But here's the twist: you can use this signal to close deals where both sides feel victorious.

You're grinding on pricing. Then suddenly: "What about exclusivity?" "Contract length?" "IP rights?" That pivot tells the other party you’re tapped out on dollars but still looking to provide value, which leaves the other party feeling like they have received the best deal possible.

  • The Bottom Line: A shift to non-monetary terms isn't a weakness; it's a strategic tool. By deliberately pivoting at the right moment, you signal constraint while demonstrating flexibility. They walk away satisfied that they extracted maximum value. You close at your target price.

  • Action Item: Before negotiations, list 5 non-monetary items that cost you little but hold perceived value for the other party (payment terms, co-marketing, longer contract duration, case study rights). When you've reached your price floor, make the deliberate shift to these non-monetary terms. The pivot itself becomes the close.

What was your favorite story this month? Why?

🌯 That’s a Wrap…

Otherwise, here are 2 other ways I can help:

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Till next time,

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