Is Gen Z Killing Traditional Procurement Practices?

The much discussed – and often maligned – Gen Z is said to be killing everything from traditional marketing to corporate hierarchies – and now, it seems, even procurement isn’t safe. At least, that’s what some of the industry veterans might think as they witness Gen Z’s radically different approach that is challenging the old guard.

Each generation brings its own strengths and fresh perspectives, and Gen Z is no different. As digital natives, they are redefining traditionally manual practices and backing innovative approaches to how things get done, just as generations before them did – albeit in their own way.

Born into a world dominated by instant communication, AI, and social media, Gen Z approaches procurement with a similar digitally-infused, environment-first mentality. So, it’s little surprise that as they enter the procurement workforce they are bringing with them expectations of transparency, ethical sourcing, and the seamless integration of technology. 

What Gen Z Value Most at Work

Unlike older generations focused on cost-cutting and efficiency, Gen Z’s priorities extend beyond the bottom line. They see sustainability, diversity, and purpose all playing key roles in procurement decisions. For Gen Z workers, it’s not enough for a company to deliver value – it must be the right kind.

True Purpose 

Nearly all Gen Zs, according to Deloitte’s 2024 Gen Z and Millennial Survey, want purpose-driven work, and they are not afraid to turn down employers or even assignments that don’t mesh with these ideals. The report found that roles or companies that contribute negatively to the environment, promote inequality, or fail to support their employees’ mental health and work-life balance are increasingly off the cards, with 50% of Gen Z reporting they’ve turned down such opportunities. Companies prioritising sustainability, inclusivity, and employee well-being are far more likely to attract and retain Gen Z talent.

This shift is reshaping procurement across industries, as organisations recognise talent seek workplaces reflecting their values. It’s one of many key factors driving procurement departments to prioritise ESG (Environmental, Social, and Governance) initiatives, aligning both internal operations and supplier relationships with these values.

Sustainability and Ethics

Climate action is a top priority for Gen Z. The report found 46% have changed or plan to change jobs due to climate concerns. In fact, Gen Z’s passion for environmental action is reflected in procurement’s increasing role in decarbonising value chains, securing green materials and prioritising responsible sourcing practices. 

They expect businesses to do more to reduce their environmental impact and also provide consumers with more sustainable choices. Deloitte found that companies that fail to meet these environmental standards face real consequences. 25% of Gen Z have reduced or severed relationships with businesses due to unsustainable practices. 

Procurement teams would be wise to carefully vet suppliers and choose partners that align with their company’s sustainability goals.

A Highly Tech-Savvy Workforce

Gen Z professionals are innately comfortable with technology and possess a deeply entrenched tech-first mindset. Their preference for digital tools is shifting procurement towards tech-heavy solutions. These include AI-driven supplier evaluation, risk management, and real-time data analysis. 

After all, why would they work in spreadsheets when they could be taking advantage of cutting-edge platforms that are integrated, seamless, and capable of providing instant insight? For Gen Z, it’s about real-time data access and using AI to predict trends, identify risks, and adjust. This is something traditional systems simply cannot achieve.

Changing Workforce Dynamics

As baby boomers retire, procurement will find itself facing another key challenge: how to attract younger talent? Gen Z is not as drawn to traditional procurement roles, often favouring tech or purpose-driven industries. To tackle this, the industry must rethink engagement with Gen Z and rebrand procurement as an innovative, tech-driven field.

For example, procurement can showcase its digital transformation and the strategic, impactful nature of the work, aligning with the values and skills Gen Z professionals seek.

Shift in Communication and Decision-Making

With Gen Z’s preference for collaborative, less hierarchical environments, procurement is also seeing changes in how decisions are made. The focus is shifting toward cross-functional teamwork, with procurement professionals evolving from cost controllers to strategic partners involved in organisational decision-making. It’s more transparent and agile, and positions procurement as a driving force in shaping company strategy and fostering innovation through closer collaboration with other departments. A fantastic result for procurement as a whole.

There’s no doubt Gen Z will reshape procurement, introducing fresh expectations, values, and digital agility to the field. This shift isn’t the end of tradition, but an evolution aligning procurement with new generational values and working styles.

The question isn’t whether Gen Z is disrupting traditional procurement —it’s how fast procurement can evolve to meet modern demands.