Global disruptions, including geopolitical conflicts and logistics bottlenecks, have transformed procurement into one of the most strategically important capabilities within modern organisations, says professional body the Chartered Institute for Procurement and Supply (CIPS).

The war between the US-Israel and Iran is threatening one of the world’s most critical shipping corridors. The Suez Canal and Red Sea trade route normally handle about 12% to 15% of global trade and nearly 30% of global container traffic, representing more than $1-trillion worth of goods moving between Asia, Europe and Africa each year.

Disruptions to these routes have forced many global carriers to divert vessels away from the Red Sea, rerouting ships around the Cape of Good Hope, which can add up to two weeks to shipping times and thousands of kilometres to trade routes.

The Strait of Hormuz carries about 20% of the world’s seaborne oil trade, which makes it central to global energy supply chains.

Shipping disruptions in the region have already forced vessels to halt or reroute, with analysts reporting that around 170 container ships carrying an estimated 450 000 twenty-foot equivalent units (TEU) of cargo have been stranded or delayed near Gulf shipping lanes, CIPS says.

The conflict risks have prompted shipping lines to introduce war-risk surcharges of about $1 500 per container, which significantly increases freight costs for businesses reliant on international trade.

“Procurement is not only about purchase orders and costs, but also managing risk, ensuring supply continuity, strengthening supplier ecosystems and helping organisations navigate global uncertainty,” says CIPS Southern Africa regional MD Paul Vos.

Additionally, African economies are already experiencing knock-on effects, with the Middle East conflict placing a growing strain on African supply chains and pushing up energy costs across the continent.

Earlier global shocks, such as the Covid-19 pandemic and Russia's invasion of Ukraine, exposed the fragility of global logistics networks and the vulnerability of import-dependent economies to geopolitical disruption, he says.

For South Africa, these pressures are compounded by domestic logistics constraints. Port congestion, rail inefficiencies and infrastructure challenges continue to affect the movement of goods, particularly for export-driven industries such as mining, manufacturing and agriculture.

“In South Africa, procurement teams increasingly have to navigate global and local supply chain disruption. They must identify alternative suppliers, renegotiate logistics arrangements and build resilience into supplier networks in ways that simply weren’t necessary a decade ago,” says Vos.

The economic effects of supply chain disruption are now spreading beyond logistics and into financial markets and commodity supply, he adds.

Commodity markets are also reacting to the disruption. For example, sulphur, a key input for fertiliser, chemicals and semiconductor manufacturing, has seen price increases of around 15%, affecting more than 44 000 companies globally that rely on the material for industrial production.

The growing complexity of supply chains is also driving increased demand for procurement expertise, says Vos.

“As supply chains become more complex and interconnected, procurement professionals are becoming central to organisational decision-making. Businesses recognise that strong procurement capability can influence everything from operational stability to long-term competitiveness,” he says.

There are persistent global shortages of procurement and supply professionals, as organisations seek talent capable of managing supplier risk, sustainability compliance and supply chain resilience.

“When procurement works well, businesses become more resilient, and economies are better equipped to withstand global disruption.”

CIPS Southern Africa has launched a campaign 'Excellence That Moves the World' to attract young talent and strengthen the region’s procurement capability.

The campaign aims to raise awareness of the profession’s expanding role in modern economies, and highlight the critical role procurement professionals play in keeping industries, economies and supply chains functioning.