RS releases 2026 Indirect Procurement Report: 'Uncertainty Driving Efficiency'

The report was produced in association with The Chartered Institute of Procurement & Supply (CIPS). It explores the current state of play for those responsible for procurement of supplies supporting maintenance, repair and operations (MRO).

It is the ninth annual survey of its kind, and drew 448 responses from the UK and Ireland, with respondents from the procurement profession spanning sectors including facilities and intralogistics, discrete manufacturing, process manufacturing and energy.

The report includes focus areas pertinent to the profession, including business pressures, Environmental, Social and Governance (ESG), category management and MRO.

"We’re delighted this year’s survey garnered more responses than last year, and respondents represented a balanced cross-section of the procurement profession. Some 42% were from large organisations, around 20% from medium-sized and 35% from smaller organisations. Job roles also spanned every stage of the procurement career," said Raj Patel, MD for the UK&I at RS. 

"It’s more important than ever for these professionals to be engaged: these are very challenging times for the profession with political instability, shifting tariffs and fragile global supply chains. This has all created an environment where certainty can no longer be assumed. These same pressures are showing up sharply in indirect procurement, where teams are being asked to deliver cost control, continuity and compliance in shifting conditions.”

Reduced operational budgets were cited as the highest business pressure in the report, by 56% of respondents, followed by sustainable and ethical procurement at 47% and the need to reduce inventory costs, at 44%.

Challenges for MRO procurement in the next 12 months emerged as inflation and higher costs (68%), and managing risk in the supply chain (50%). Supply chain disruption, and global political uncertainty, were both cited by 47% of respondents. 

The report highlights consolidation of the number of suppliers as one of the tactics being used to overcome these pressures, cited by 50% of respondents, and driving value through supplier partnerships, by 46%. Fewer suppliers mean fewer administrative processes, and potentially more leverage. This approach is being used as a resilience strategy as much as a savings exercise, according to the report.

The real structural shift in research data on supplier rationalisation supports this strategy. Organisations now work with an average of 83 MRO suppliers – down from last year’s 92. Business process costs when placing an order are also decreasing. On average, the business cost for processing an order is £77. Among the 37% of respondents who know their costs, 72% now say their cost is below £100, which is up from 59% citing the same figure last year.

An emerging issue in this year’s report was the trade tariffs announced in 2025. Mitigation strategies cited to limit the impact of these were reviewing supply chain and location of suppliers (65%) and re-negotiating existing contracts (57%).

"Procurement has become the frontline of business resilience, as rising inflation and supply chain disruption force organisations to balance cost, continuity and strategic control simultaneously. Tariffs and trade friction are driving structural change, with companies actively redesigning supply chains, re-negotiating contracts and in some cases near-shoring production," Patel added.

When it comes to ESG, the report findings might suggest cost pressure is undermining sustainability ambitions. But the reality is a complex picture.
 
ESG at-a-glance:

• Almost half (47%) of respondents said sustainability and procurement of sustainable products has increased in importance in their organisation in the last year
• Willingness to pay more for sustainable products has dipped, with 53% of MRO professionals saying they would pay more, compared with 62% in the 2025 report
• While ESG remains embedded in procurement strategy, organisations are prioritising actions like energy reduction, waste diversion and renewables, to achieve sustainability gains and direct cost savings

ESG governance is maturing, with contract clauses becoming standard as companies demand measurable data, proof of impact and accountability from suppliers

The message is ESG must now prove its business value. Net zero, reduced waste and safer, lower-impact products are being reframed as operational performance levers.

Uncertainty Driving Efficiency offers survey findings alongside commentary from industry spokespeople, and offers actionable insights for MRO professionals.

"This is an important report that identifies many of the critical issues we also see across the CIPs global network. It also highlights the effectiveness of procurement and supply chain professionals in striking smart balances, and using their skills to find cost reductions and opportunities to reduce carbon emissions," stated Ben Farrell, CO at CIPS.

"Ultimately, the job of procurement and supply chain professionals is to ensure security of supply; the best are able to achieve this by remaining flexible to short-term opportunities."

Patel said that new report paints a picture of a profession using uncertainty as a catalyst for smarter, leaner, and more connected ways of working. "Procurement is no longer a back-office function; rather, it is a strategic enabler of efficiency, sustainability and resilience.

"Centralisation, digitisation and strategic supplier partnerships are emerging as core resilience levers, helping evolve procurement from a transactional function into a strategic, data-driven discipline," he concluded.

The full 2026 Indirect Procurement report can be found here.