Industrial organisations are operating in an environment defined by continuous disruption. What was once episodic and manageable has become persistent and interconnected. Inflationary pressure, geopolitical instability, energy volatility and rapid technological change are no longer separate challenges. They are converging to reshape how industries operate, compete and grow.
The message emerging from RS Connect is clear. Organisations can no longer rely on internal optimisation alone to secure performance. Competitive advantage is increasingly being determined by the strength of external relationships, shared capability and coordinated action across value chains.
The next decade of industrial performance will be defined by ecosystem thinking rather than organisational isolation.
Disruption is both cyclical and structural
At RS Connect, global strategist Dr Abdullah Verachia highlighted a critical distinction shaping industrial decision making today. Organisations are operating under the combined pressure of cyclical fluctuations and deeper structural transformation.
Cyclical pressures such as inflation changes, demand variability and short-term cost movements continue to influence operational priorities. These are familiar dynamics that organisations have historically managed through pricing, efficiency and short-term planning.
However, these cyclical forces are now interacting with structural shifts that are fundamentally reshaping industrial systems. These include geopolitical fragmentation, supply chain realignment, climate related risk and the accelerating adoption of digital technologies.
The 2026 RS and CIPS Indirect Procurement Report reflects this dual pressure clearly. 68% of organisations identify inflation and rising costs as their most immediate challenge. At the same time, 50% highlight supply chain risk and 47% identify geopolitical uncertainty as key medium-term pressures.
What is significant is not only the scale of these challenges, but their interdependence. Short term cost volatility is now being intensified by structural shifts in supply chains and global trade. Organisations are no longer managing separate categories of risk. They are managing a connected system of pressures that reinforce one another.
Procurement is shifting from transactions to ecosystems
One of the clearest shifts emerging from the RS and CIPS data is the redefinition of procurement itself. Traditional fragmented supplier models are being replaced by more integrated and strategically aligned ecosystems. Half of organisations report that they are consolidating their supplier base, while 46% are actively deepening strategic supplier relationships.
This reflects a broader shift in thinking. Procurement is no longer viewed as a function focused on individual transactions and cost negotiation. It is increasingly being recognised as a mechanism for enabling system wide performance. RS Connect reinforced this shift by emphasising the importance of ecosystem design. In complex industrial environments, no single organisation can resolve challenges in isolation.
MRO is becoming a driver of operational resilience
This ecosystem shift is particularly evident in maintenance, repair, and operations environments where disruption has immediate operational consequences.
The report shows that 66% of organisations are able to place emergency MRO orders within a single working day. This highlights the growing importance of speed, availability and reliability in maintaining operational continuity.
MRO is no longer a secondary cost category. It is becoming a critical enabler of resilience. In volatile operating environments, even short delays in maintenance or supply can result in production downtime, safety risks and financial loss.
As a result, supplier performance in MRO is increasingly being measured not only by cost, but by responsiveness and consistency under pressure.
Technology must move from ambition to execution
A recurring theme at RS Connect was the gap between digital ambition and operational reality. While technology adoption is widely recognised as essential, integration into day-to-day procurement and operational processes remains limited.
The data shows that only around one in ten organisations currently use artificial intelligence within procurement functions. At the same time, 38% of organisations do not know their internal cost to process a purchase order. This creates a significant visibility gap. Without clear insight into internal processes, organisations struggle to identify inefficiencies, quantify improvement opportunities, or build strong business cases for transformation.
The challenge is no longer awareness of digital tools. It is the ability to embed them into operational workflows in a way that delivers measurable value.
Sustainability and efficiency are converging
Sustainability is increasingly being integrated into core operational performance rather than treated as a standalone compliance requirement. The RS and CIPS research shows that 59% of organisations have implemented energy management initiatives, 60% are using renewable energy sources, and 74% prioritise waste recycling.
In southern Africa, this convergence is particularly important. Sustainability initiatives are increasingly linked to energy reliability and operational continuity in environments where infrastructure constraints remain a challenge. The result is a shift in how sustainability is defined. It is no longer only about environmental impact. It is increasingly about ensuring stable, efficient, and resilient operations.
Collaboration is becoming critical infrastructure
The combined insights from RS Connect and the 2026 RS and CIPS Indirect Procurement Report point to a clear conclusion. Collaboration is no longer an optional capability or soft skill within industrial organisations. It is becoming critical infrastructure.
In an environment defined by structural disruption and interconnected risk, organisational performance is increasingly determined by the strength of external relationships and the ability to operate as part of a wider ecosystem. Organisations that invest in collaborative models will be better positioned to manage volatility, respond to change and build long term resilience.
Industrial success in the next decade will not be defined by how efficiently organisations operate in isolation. It will be defined by how effectively they connect, coordinate, and collaborate across entire value systems.
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