There’s no denying that the past 12 to 18 months have been tough. New Zealand’s supply chain sector has felt the weight of sustained economic pressure, ongoing recession impacts, and geopolitical uncertainty.
Procurement and supply chain leaders have had to adjust quickly, navigating shifting demand patterns, increased cost pressure, and tighter margins. In many organisations, austerity has taken the form of “sinking lid” policies, where employees who exit are not replaced. While we haven’t seen widespread redundancy programs, particularly in government procurement, headcount has declined quietly. The result is leaner teams under more pressure.
Early signs of a reset
We’ve also seen a shift in senior hiring. COO and senior supply chain leadership placements increased by 12% in 2024 compared to 2023. These hires are often early signals that businesses are preparing for growth, with executive teams positioning for a better market in the second half of FY25 and into FY26.
Confidence is returning, and with that comes a series of important questions for business leaders:
- Do you have the right people in place?
- Are your systems, processes, and structures fit for purpose?
- Can your supply chain adapt to a more complex, tech-enabled environment?
- Are you ready to move from austerity into opportunity?
What’s shaping the year ahead
1. Technology and automation are changing the game
We’re seeing a continued rise in automation as companies look to optimise operations and reduce reliance on manual processes. The adoption of generative AI is also picking up pace, particularly in demand planning, risk management, cost negotiation, and predictive maintenance. These technologies are enabling more resilient and responsive supply chains, and they’re reshaping what capability looks like across roles.
Employers are increasingly seeking supply chain professionals with a working knowledge of digital platforms, automation tools, and advanced analytics. Roles in logistics, inventory management, and supplier engagement are evolving, and the talent brief is evolving with them.
2. Sustainability is back on the agenda
After taking a back seat during the height of economic uncertainty, ESG and sustainability have returned as key priorities, particularly for organisations dealing with government contracts or export markets. Companies are once again focused on reducing emissions, improving transparency, and embedding ethical sourcing into their supply chains.
3. Job seekers are re-engaging
After two years of limited movement, professionals are re-entering the market. Many have delayed career changes due to uncertainty, but with renewed optimism, they’re now looking for growth, development, and more support.
Candidate movement is expected to be a major trigger for hiring momentum in FY25/26. As strong people leave, organisations will look to replace them, creating knock-on effects across the market.
What this means for Employers
Now is the time to look at your team. Many organisations have delayed backfilling roles, restructured teams, or postponed projects due to cost constraints. But those same projects, ERP rollouts, supplier strategy work, value-add process improvements are being restarted. The people doing the work will need support.
Key Considerations:
- Retention strategy matters more than ever: Professionals are reassessing their options. If you haven’t got a plan in place, now is the time. Not just flexible work, but real development, meaningful work, and clear recognition.
- The skill gap is real: While hiring has been subdued, gaps have remained hidden. As hiring picks up, they will re-emerge quickly. Getting ahead of this now could be a major competitive advantage.
- Don’t underestimate returning confidence: Candidates are more open to movement. If you don’t have clear value to offer, someone else will.
It’s been a demanding period, but there are strong indicators that the supply chain sector is turning a corner. Businesses are preparing for growth, but doing so with caution and intent.
For employers, the opportunity lies in being proactive: Investing in the right people, shaping the right structures, and retaining your key talent before the market moves too fast.
