The UK’s procurement, supply chain, and warehousing sectors continue to navigate complex economic and operational challenges, with rising inflation, post-Brexit regulatory changes, and the growing importance of digitalisation shaping the job market.
As we progress forward, it is apparent that companies need to adapt their processes to attract and retain the best people for their teams.
Current trends across procurement
The procurement sector, in particular, is poised to see continued demand and growth, driven by complex economic dynamics and evolving employer and candidate expectations.
Businesses must be agile, especially in today’s competitive job market, where the right talent can be pivotal in meeting cost-efficiency goals and overcoming logistical challenges.
One of the most notable trends is the escalating demand for skilled procurement professionals, especially in the public sector. With tightened budgets and a mandate to cut costs, public sector employers are increasingly seeking specialists, such as category managers, who can optimise spending and ensure compliance with new regulations.
IT, cyber security, and AI procurement are particularly high-demand areas, as organisations focus on technological transformation. Consequently, public sector salaries have risen, creating fierce competition for talent.
The impact of the new Procurement Act
The new Procurement Act is set to revolutionise procurement practices for the public sector, across the UK, by emphasising transparency, efficiency, and sustainability. This legislation will mandate stricter compliance and reporting standards, which will drive organisations to adopt more robust procurement processes and technologies.
As the public sector and those private companies involved in procurement within the sector come to terms with the act, there will be a heightened demand for professionals skilled in digital procurement tools and data analytics, leading to a significant shift in recruitment within the sector.
Companies will need to seek individuals who not only understand traditional procurement but also possess the ability to navigate and implement advanced systems that align with the new regulatory framework.
This shift will likely result in a more dynamic and competitive job market, with a focus on continuous learning and adaptability.
Challenges facing supply chain, logistics and warehousing
In supply chain and logistics, however, the work environment has become more challenging post-Brexit. Increased customs and compliance requirements have added layers of complexity, making logistics roles more demanding. This has resulted in some leaving the sector, especially in junior roles, where workloads have grown without proportional salary increases.
The UK’s economic landscape has intensified the need for supply chain expertise. Inflation, the aftermath of Brexit, and the push for local sourcing have all increased the workload and complexity for professionals. The emphasis on cutting logistics costs and sourcing sustainably has kept the sector busy, with new opportunities in areas focused on cost optimisation.
In response to these pressures, organisations are also embracing more localised supply chains and exploring innovative methods to streamline operations.
In warehousing, existing employees and candidates are craving flexibility. Many companies are struggling to get their heads around. In this case, employers may benefit from implementing shift flexibility and paid overtime as strategies to improve work conditions – as working from home simply isn't possible.
The need for streamlined attraction and retention tactics
To attract high-calibre talent, particularly in procurement and supply chain, employers must regularly evaluate and adjust salary benchmarks. Salary expectations have been rising, and professionals are often choosing between multiple job opportunities.
In this environment, companies should conduct market research to ensure their compensation packages remains competitive. In areas where budgets are limited, focusing on broader benefits like hybrid work, flexible hours, and strong career development opportunities, can provide a competitive edge.
Flexible work arrangements, including hybrid and remote options, continue to be a high priority for jobseekers in procurement. Employers who offer flexible work environments not only increase their appeal but also retain current employees who value work-life balance.
Focus on skills development and career progression
The procurement and supply chain sectors are increasingly tech-oriented, with skills in AI, data analytics, and category management in high demand. Upskilling initiatives can be an effective recruitment tool and a valuable retention strategy.
Companies can benefit from establishing apprenticeship programmes, particularly for public sector procurement, which faces talent shortages. Career progression paths are also essential, as employees who see a clear future within their organisation are less likely to seek opportunities elsewhere.
Employers are encouraged to engage in transparent discussions with their staff about potential career growth and support employees in developing relevant technical skills.
Addressing tech integration and digital transformation
With advancements in AI and other digital tools, companies need to stay updated on how best to incorporate new technologies within their procurement and supply chain operations. The transformation to digital-first operations requires employees who are not only skilled in traditional procurement but also knowledgeable about emerging tech.
In the public sector, concerns around GDPR compliance when using tools like AI have slowed adoption, but private sector employers are making strides. To stay competitive, companies need to invest in upskilling current employees in the relevant technology for their roles.
Creating a positive workplace culture
Jobseeker expectations have evolved, with more attention to company reputation and workplace culture. In warehousing, where onsite presence is required, building a supportive culture can be a significant retention tool.
Acknowledging hard work, recognising employee contributions, and creating an environment that prioritises wellbeing can help offset some of the location-related limitations for warehousing professionals.
Outlook for 2025
We expect to see the job market remain strong, with a growing demand for digital skills and AI expertise shaping job opportunities. While the public sector continues to recruit procurement specialists for cost-saving initiatives and compliance with new regulations, the private sector is maintaining a focus on resilient supply chains, especially as economic uncertainty persists.
For jobseekers, 2025 offers substantial opportunities to advance, especially for those willing to develop niche skills in category management, digital procurement, and logistics optimisation.
Professionals in warehousing and logistics will find that organisations with clear paths for career growth and competitive pay will likely offer the most stable and rewarding roles. The market’s continued emphasis on flexibility and skills development suggests that those entering the sector will find employers increasingly willing to invest in their long-term growth.
In a sector marked by rapid change, a strategic approach to compensation, workplace policies, and career progression will ensure businesses remain competitive and resilient.
Download your copy of the Reed procurement, supply chain and warehousing salary guide 2025 now.
