Cost Inflation Outlook for Procurement Strategies

This document is a report detailing the AlixPartners’ Cost Inflation Outlook for November 2025, focusing on procurement strategies in response to current market conditions. It outlines three main strategies for procurement teams: defend, attack, and optimize. The report explains how companies can protect against supply chain shocks by enhancing transparency and securing critical materials through diversified sourcing. It also discusses the need to reset strategic sourcing and supplier negotiations in light of shifting market dynamics. The document highlights the challenges posed by trade tariffs and changing policies, which complicate compliance and increase costs. Additionally, it addresses the tightening supply of key raw materials and rising labor costs, emphasizing the importance of adapting procurement practices to maintain competitiveness. The report concludes with insights on how companies can navigate these challenges and the expected cost outlook for various sectors in 2026.