As economic uncertainty persists, Canadian CFOs are prioritizing procurement to drive liquidity. A recent KPMG survey shows 68% of finance leaders now mandate procurement participation in working capital strategies – up from 41% in 2022.
Must-Watch Trends
- Cooperative Purchasing Surge:
Consortia like OECM and PCPA now represent $4B+ in annual spend. Toronto Public Library saved 22% on IT hardware by joining collaborative bids. - ESG-Linked Contracts:
New CSRD rules require suppliers to disclose emissions data. Forward-thinking firms embed sustainability KPIs into 30% of contracts. - AI-Powered Negotiations:
While full automation remains risky, tools like AIG Pro’s Bid Analysis Engine help teams benchmark 10,000+ historical bids to set realistic targets.
The CFO’s Action Plan
- Require monthly procurement savings dashboards
- Allocate 15% of supplier evaluations to ESG metrics
- Pilot cooperative purchasing for indirect spend categories