In a rapidly evolving global economy, sourcing strategies are under intense scrutiny. From shifting geopolitical tides to increasing demands for transparency and ESG compliance, procurement professionals are navigating a new era of complexity. Dragon Sourcing’s 2025 Global Sourcing Survey aggregates real-world data and executive insights from over 600 sourcing leaders across various industries. Here’s what procurement leaders need to know.
Cost Reduction and Diversification: The Twin Pillars of 2025
Unsurprisingly, cost remains king. 78% of survey respondents reported that cost reduction is still their top sourcing objective. However, diversification has emerged as a critical risk mitigation strategy, with 70% of businesses pursuing multi-regional or nearshoring initiatives. This dual focus ensures cost efficiency while protecting against supply chain shocks.
Key Insight: Companies that combine cost savings with supplier diversification reported a 25% higher supply chain resilience rating than those focusing on cost alone.
Sustainability & ESG Compliance Are No Longer Optional
64% of procurement teams have aligned their strategies with corporate ESG goals. Companies are increasingly required to ensure suppliers meet rigorous environmental and ethical standards. However, 80% of sourcing leaders admit struggling to identify ESG-compliant suppliers, especially in emerging markets.
Implication: Procurement leaders must invest in ESG-tracking technologies and collaborative audit networks to navigate tightening regulations and stakeholder expectations.
Technology as a Sourcing Accelerator
Procurement is getting a digital makeover. 59% of respondents plan to allocate 6-15% of their budgets to technology investments in 2025. From AI-powered supplier discovery to IoT-based logistics visibility, digital tools are enabling faster, smarter decisions.
Emerging Tools:
- Spend analytics platforms
- Supplier risk scoring systems
- Blockchain-based traceability
- Digital Product Passports
From China to New Hubs: The Geographic Shift in Sourcing
While China remains a dominant player, companies are diversifying their sourcing footprint. Vietnam, India, and Mexico are gaining traction as alternative hubs. For example, U.S. firms have significantly increased imports from Mexico, while EU companies are boosting ties with Turkey and Eastern Europe.
Global Sourcing Map Highlights:
- China: Still central, but 34% of firms are reducing dependence.
- Vietnam & India: Rising stars due to cost and workforce availability.
- Mexico: Preferred nearshore partner for U.S. firms.
Supplier Validation Is a Growing Challenge
Despite technological advances, 85% of businesses report difficulty verifying supplier compliance. To overcome this, companies are embracing third-party audits, blockchain traceability, and industry-wide data-sharing initiatives. Collaborative audits, in particular, have proven effective in reducing supplier onboarding time by up to 30%.
Risks That Keep CPOs Awake at Night
Procurement leaders identified the following top risks for 2025:
- Geopolitical instability (55%)
- Inflation and cost volatility (55%)
- Regulatory compliance
- Supplier failure or concentration risk
Fewer than 10% of respondents feel they have full control over supply chain risk—making resilience planning a critical capability.
Conclusion: The Era of Smart, Responsible Sourcing
2025 demands a new procurement playbook. It’s no longer enough to chase the lowest price. Success now requires a balanced strategy of cost efficiency, risk resilience, technological enablement, and sustainable practices.
Download the full survey report to explore how leading organizations are redefining global sourcing—and how you can stay ahead.
Survey Methodology: This report is based on Dragon Sourcing’s analysis of industry reports and surveys from over 600 global procurement executives, including data from EY, QIMA, Deloitte, Inspectorio, The Hackett Group, and others.
Visuals to Include:
- Bar chart: Sourcing priorities (Cost, Diversification, ESG, Tech)
- Map: Sourcing shift from China to Mexico, India, Vietnam
- Table: Breakdown of procurement trends by region
Download the survey: The 2025 Global Sourcing Outlook: Survey Insights
