With Q1 2026 trade deadlines approaching, Dan Collings reveals the three urgent supply chain shifts every Australian business must prepare for now.
What’s happening: Australian businesses in 2026 face converging pressures as consumers demand sustainability credentials whilst navigating cost-of-living concerns. AI-powered procurement tools have become affordable necessities rather than luxuries, and the potential EU-Australia Free Trade Agreement creates strategic urgency for supply chain reconfiguration.
Why this matters: Combined with regulatory changes and consumer expectations, procurement has evolved from a back-office function to a strategic differentiator that directly impacts competitiveness, customer loyalty and long-term viability.
For Australian businesses entering 2026, procurement has transformed from administrative necessity to strategic battleground. Companies spending approximately 70% of revenues with third-party suppliers now face unprecedented pressure to demonstrate transparency, sustainability and efficiency simultaneously.
Dan Collings, Executive Vice President APAC at Proxima, relocated from the United States to immerse himself in the Asia-Pacific region’s dynamic markets. His insights on navigating 2026’s procurement landscape reveal urgent priorities for small and medium enterprises facing intersecting pressures from consumers, regulators and competitors.
“Businesses should look to adopt AI-powered spend analytics and supplier risk monitoring tools in 2026,” Collings says. “With organisations spending around 70% of revenues with third-party suppliers, the ability to rapidly analyse spending patterns, identify savings opportunities, and flag supply chain risks in real-time becomes critical, particularly as trade tensions and tariffs create volatility.”
Affordable automation solutions for contract management and invoice processing will become standard in 2026, freeing procurement teams to focus on strategic supplier relationships rather than administrative tasks. Proxima, Bain & Company’s procurement consultancy arm, launched operations in Australia and the Asia-Pacific region through the integration of ArcBlue, bringing more than 1,000 procurement specialists across three continents to support the region’s transformation.
Collings emphasises that AI won’t replace people but will enable them to make faster, data-driven decisions. “Businesses that embed these tools into their procurement operating models early will gain significant competitive advantage through better visibility, faster response times, and more strategic resource allocation across their supply chains.”
Win transparency-focused customers
Australian consumers are increasingly prioritising sustainability credentials and supply chain transparency when making purchasing decisions in 2026. Scope 3 emissions from upstream and downstream activities like purchasing goods and services can make up 70 to 90% of a company’s carbon footprint, according to research from The Carbon Trust.
“With up to 90% of a company’s carbon emissions sitting in its supply chain, businesses that can demonstrate genuine decarbonisation efforts, not just pledges or greenwashing, will gain competitive advantage,” Collings explains. “This transparency extends beyond environmental factors to ethical sourcing, with customers willing to pay premiums for products with verified sustainable supply chains.”
From a procurement perspective, this means embedding sustainability into sourcing decisions, supplier selection and contract negotiations now. Businesses should also prepare for heightened price sensitivity as consumers navigate ongoing cost-of-living pressures, creating tension between sustainability aspirations and affordability.
“The winners will be organisations that can deliver both: transparent, responsible supply chains whilst maintaining competitive pricing through strategic procurement and supplier partnerships that drive efficiency and innovation,” Collings says.
Prepare for trade shifts
The EU-Australia Free Trade Agreement, which launched negotiations on 18 June 2018, potentially finalised by Q1 2026, will fundamentally reshape supply chain strategies for Australian businesses.
“This will mean structural change flowing through to sourcing strategies, pricing structures, and long-term supply chain risk planning,” Collings observes. “For the EU, the deal secures compliant access to Australia’s critical and raw materials, enabling supplier diversification away from higher-risk locations like China. For Australia, beyond commodity exports, this positions the country as a strategic partner in EU supply chains whilst potentially reforming luxury car tax structures.”
As a bloc, the EU is Australia’s third largest two-way trading partner and second largest source of foreign investment, with a nominal GDP of US$19.4 trillion in 2024. Procurement and supply chain professionals must act now to optimise their strategies, as the timeline leaves minimal runway for preparation.
Additionally, businesses should prepare for tightening carbon pricing mechanisms and Scope 3 reporting requirements in 2026, with regulatory pressure mounting on businesses to demonstrate measurable emissions reductions.
Strategic leadership matters
Beyond professional insights, Collings reflects on personal decisions shaping his approach to business leadership in 2026. “The decision to relocate from the US and immerse myself in the dynamic Asia-Pacific region stands out as one of my proudest decisions,” he says. “It’s been both a professional leap, stepping into new markets and cultures, and a personal adventure, especially with my wife’s family roots in New Zealand.”
He maintains a routine of intentional travel and local exploration, making time to visit new cities, connect with local teams and clients, and experience the region’s diverse cultures. “This habit not only fuels my curiosity but also deepens my understanding of the markets and organisations we serve.”
Looking ahead to 2026, Collings plans to continue exploring New Zealand, starting with a long kayak trip in January. “As someone who loves travel and adventure, building my skills in this area would enrich both my personal life and my understanding of the region.”
For businesses navigating 2026’s procurement challenges, Collings’ message remains clear: the time for preparation has passed. “Procurement and supply chain professionals must act now to optimise their strategies,” he says. Companies must embed AI tools, demonstrate genuine sustainability credentials and reconfigure supply chains ahead of regulatory and competitive pressures that will separate strategic leaders from reactive followers.
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