Supply Chain Roundtable: Procurement’s Unique (and Critical) Perspective
With AI, digital transformation and geopolitical uncertainty converging to reshape supply chains in real time, the monthly roundtable of experts from Institute for Supply Management® (ISM®) explores how procurement leaders are navigating those shifts.
Panelists discuss why supply chain organizations are uniquely positioned to identify emerging trends before the rest of the enterprise, not only with global events that can threaten disruption but also the technological tools to improve suppler visibility and product flows.
Add takeaways from the ISM World 2026 Annual Conference in April, and the result is a comprehensive and insightful discussion on the critical issues facing companies — and the criticality of the procurement function in addressing them.
The panel:
- Stacey Taylor, MBA, vice president of procurement at Ocean Spray Cranberries, Inc. and Chair of the ISM Board of Directors
- Jim Fleming, CPSM, CPSD, ISM Manager, Product Development and Innovation
- Michelle Rohlwing, MBA, ISM Manager, Product Development, Innovation and Learning
- Naseem Malik, MBA, CPSM, director of strategic procurement at Integrity, a Dallas-based insurance distributor and financial management provider.
Q: In many aspects of business, supply managers and procurement organizations often “see things first.” In that spirit, how can the function use AI and other technologies in ways that set examples for the rest of a company?
Taylor: Procurement is often the first function to “see around corners” because we’re constantly sourcing the newest, most innovative solutions for our business partners. That gives us a unique, enterprise-wide vantage point into emerging technologies, especially AI, and how other organizations are already putting them to work. By applying those same tools internally, procurement can model what responsible, high impact adoption looks like. For example, we can streamline intake through smart forms that guide users to the right path or use AI to accelerate RFP development, launch and analysis — always with human oversight to ensure accuracy and judgment. Because these tools are both customer-facing and deeply collaborative with our business partners, procurement becomes a live demonstration of how AI can elevate user experience, simplify processes and improve decision quality. In doing so, we don’t just adopt new technology, but we also showcase what’s possible for the rest of the enterprise.
Fleming: Supply management professionals can lead digital transformation by piloting AI in spend analytics, cost modeling, demand sensing and supplier risk monitoring. This will enable proactive, data-driven decisions that enhance visibility and agility. ISM demonstrates affordable AI solutions in our Advanced Analytics workshop to create visibility into spend analytics, supplier costs and global risks. Student feedback has been very positive, highlighting prompt experimentation and direct alignment to their day-to-day work. Supply management can also focus on standardizing workflows, governance and performance metrics to ensure scalability and sustainability. This consistency reduces cycle time, improves resilience and creates a repeatable model. Over time, it provides a practical blueprint that other functions can adopt to confidently scale digital capabilities and drive enterprise-wide value.
Rohlwing: Since supply managers are closest to markets, suppliers and risk signals, they’re often the first to see change coming. Using AI can help spot risks earlier, model scenarios, and turn complex data into clear business insights. Procurement can show the rest of the organization how to use technology responsibly and effectively. Just as important, the function can set the standard by adopting AI with discipline and governance. It is important to protect data, avoid hype, and use it to support better decisions and develop people, not replace them. If all this is done well, procurement becomes the example of how AI should improve judgment, resilience, and leadership across a business.
Malik: I agree with the points already made, and I’d add that procurement can set the example by using AI less as a “shiny object” and more as an operating discipline. In my current role, we are building procurement capability in a highly decentralized environment, so the opportunity is not just faster sourcing initiatives or cleaner summaries. It is using technology to create better intake, better spend visibility, better supplier intelligence, and better decision discipline across the business.
Where procurement can really lead is by showing how AI connects fragmented information into action: spend data, contracts, supplier performance, risk signals, stakeholder demand and savings validation. That is where the function can move from being a transactional gatekeeper to an enterprise adviser. But the key is balance. AI can accelerate the work, but procurement still has to apply judgment, challenge assumptions, protect the business and bring commercial context. The companies that get this right will not simply automate procurement. They will raise the quality and speed of decision-making across the enterprise.
Q: What commodities are you most concerned about regarding potential shortages, whether related to conflict in the Middle East or not?
Rohlwing: The commodities drawing the most concern right now are those exposed to energy, geopolitical conflict and highly concentrated supply chains. Energy remains critical, but the ripple effects are showing up in memory chips. Increased AI data center demand is pulling supply away from electronics and driving shortages and price increases. At the same time, fertilizer has also become a major risk as the Iran conflict disrupts trade routes and energy supplies — sharply raising costs and threatening supply for U.S. farmers.
Malik: My concern is less about one isolated commodity and more about the categories that sit underneath growth, technology and infrastructure. Critical minerals, rare earths, copper, electrical components, transformers, switchgear, memory chips and data-center-related capacity are all areas I would watch closely. These are not always obvious line items to the broader organization, but they are embedded in the technology, facilities, equipment and services companies depend on. In indirect procurement, the impact often shows up as a second- or third-order effect. We may not buy copper directly, but we feel it in electrical work, construction, IT infrastructure, equipment lead times and supplier pricing behavior. While we may not buy rare earths directly, they affect electronics, vehicles, automation, medical devices and other advanced equipment. So, the questions become: Where are we exposed indirectly? Which suppliers have leverage? Where do we need alternative sources, contractual protections or earlier demand planning?
Taylor: No shortage worries — just timing and cost. And I agree with Michelle: The bigger story is inflationary pressure, especially for U.S. farmers. Fertilizer and other key inputs don’t just spike costs in the moment, but they also create multiyear ripple effects across planting cycles and yield decisions. Add the expected upcoming El Niño winter, which typically brings weather volatility and can further stress crop performance and input demand, and the cost impact becomes even more pronounced. These pressures ultimately cascade through the supply chain long after the initial disruption.
Fleming: I am increasingly concerned about rare earth elements (REE), which are critical for advanced electronics, renewable technologies and AI hardware, yet remain geographically concentrated and vulnerable to geopolitical disruption. While China only has 45 percent to 50 percent of known global REE reserves, it maintains approximately 85 percent to 91 percent of global capacity for REE processing and refining. This has already become an issue for many companies. Equally pressing: the availability and reliability of electricity to power AI data centers, with demand for energy-intensive computing rapidly accelerating. Together, constrained access to these inputs — materials and power — poses significant risks to continuity, scalability, and cost stability across global supply chains.
Q: What would be the first warning sign that current geopolitical tensions are becoming a broader supply chain crisis?
Malik: The first warning sign for me is when supplier behavior changes before the headlines fully catch up. When quote validity windows shrink, lead times become “to be confirmed,” suppliers start pushing freight or energy surcharges, allocations replace normal ordering, and suppliers are reluctant to commit to pricing. This is when the risk is becoming commercial and operational, not just geopolitical. Another signal is when unrelated categories start showing the same pattern at the same time. If IT hardware, facilities, MRO, construction, logistics and professional services begin referencing the same pressure points — which are energy, freight, labor, capacity, financing, or country-of-origin risk — then you know the issue is spreading. At that point, procurement must move quickly from monitoring to mitigation by (1) confirming exposure, (2) prioritizing critical suppliers, (3) locking in terms where appropriate, and (4) giving leadership a clear view of risk, cost impact and decision points.
Rohlwing: The first warning sign is when a problem that seems isolated starts showing up everywhere. You’ll see lead times extend and prices jump for basic materials that depend heavily on energy. Suppliers across very different categories will start saying the same thing: Supply is tight and capacity is limited. Also, when unrelated suppliers all start flagging the same risks at once, that’s when geopolitical tension is no longer just “noise.” It’s turning into a real and broader supply chain issue.
Fleming: An early warning sign of a broader supply chain crisis is a sudden increase in lead times and supplier unreliability across multiple regions and tiers, not just isolated disruptions. This is often accompanied by price volatility in critical inputs and reduced transparency from suppliers. When expedited shipping, alternative sourcing and inventory buffers become consistently necessary, it signals that localized geopolitical tensions are cascading into systemic constraints affecting global supply continuity and stability.
Taylor: I completely agree with Michelle, but I’d add that the real canary in the coal mine is tightening in the logistics space, when freight capacity gets tight and export/import delays start creeping in. Those shifts show up long before any formal supply disruption hits.
Q: Everyone on this panel attended ISM World 2026 in April. What were your most memorable moments and/or key takeaways from the Conference?
Fleming: I had the honor to host the ISM International Student Case Competition. The competition was narrowed down to four universities that presented their case to a large audience. Each team had four student members, each responsible to present a portion of the case. The solutions proposed were amazing, and the enthusiasm was high. After being engaged with these students, the future of supply chain management is in good hands.
Taylor: What struck me most was Kara Swisher’s keynote interview, in which she discussed the sheer consolidation of power among the top tech companies and how tightly their business agendas now shape the market. It reinforces that, as buyers, we’re going to have to double down — not just on negotiating the best commercial terms, but also on securing the right protections, guardrails, and long-term leverage for our companies.
Malik: My biggest takeaway from ISM World 2026 was less about one specific session and more about the overall direction of the profession. Procurement is clearly being asked to play a much bigger role, but we have to earn that role with stronger business judgment, better use of technology, and more effective stakeholder influence. The conversations around AI, technology, risk, supplier power, and value creation all pointed to the same thing: The function cannot just be about sourcing events and savings projects anymore.
In my current role, building procurement capability inside a decentralized business has reinforced that lesson. The hard part is not identifying opportunities — it’s driving adoption, aligning stakeholders, validating value and making the work stick. That is where, I believe, the profession is headed. Procurement leaders who can translate complexity into practical business action and still protect their companies commercially will have the most impact.
Rohlwing: The “Ascend Problem Solving: Sustainability in RFPs — From Checkbox to Business Value” session stood out because it moved the conversation from theory to real, practical decision-making. Instead of treating sustainability like a compliance exercise, the session challenged us to think about how sustainability requirements in RFPs actually drive long-term business value. What I appreciated most was the problem-solving format. It mirrored the real tensions supply management faces every day, such as cost pressure, supplier readiness, data credibility and internal stakeholder buy-in. It wasn’t about perfect answers but about smarter trade-offs.
(Photo credit: Getty Images/Prime Images)