One simple question—can procurement change the world?
For those outside the procurement world, this question may sound farfetched. But there’s no better time than now to consider how procurement can be part of the solution to some of the biggest challenges facing the world.
Public Procurement’s Footprint
Still skeptical? Check out these procurement stats:
- Global public procurement spend is estimated at $13 trillion USD annually
- Nearly 13% of gross domestic product (GDP) in OECD countries is spent through a procurement process
Contrast those stats with a few estimates for the expenditure required to tackle major global challenges:
- $40 billion per year to eliminate world hunger by 2030
- $26 billion to provide basic education to all children
- $34 billion to eradicate malaria
Given the scale alone, it’s clear that public procurement, and its core principles of fairness, transparency, and best value, can have a major impact on the fabric of society.
The ripple effect of responsible and ethical spending decisions extends beyond the direct end users, to the supplier community and wider society. From increasing a community’s economic capacity through the involvement of minority-owned businesses, to promoting a more sustainable industry by including environmental criteria in the purchasing decision, procurement teams can have a major impact on the world around them.
Challenges to Overcome
Unfortunately, there’s a clear gap between procurement’s potential impact and the current operations of many public sector organizations. Here’s a snapshot of procurement processes in the last twenty years:
- In previous decades, there was a strong need for greater efficiency and information management—leading to the adoption of digital solutions.
- Using word processors, spreadsheets, and email worked at the time, but the growing complexity of procurement and limitations of early software left teams struggling again.
- Workers were stressed, overworked, and tried to manage tasks with inefficient methods.
- These methods became a time and attention suck, with staff getting lost in tedious manual processes and unable to focus on bigger picture tasks.
The digital transformation that brought exponential efficiency to many functions has been slow to materialize in procurement. In many cases, procurement is still seen as a back-office function, with staff members’ time monopolized by administrative work—leaving little time or energy for innovation and process improvement.
After all, it’s hard to think about changing the world when you’re buried in tedious workflows.
How Technology Accelerates Procurement’s Impact
Adoption of modern, cloud-based tech like Euna Procurement is a key piece of the puzzle when it comes to procurement’s impact. It’s crucial for teams to begin the process of modernization to take advantage of streamlined processes and AI-powered advancements.
Once cloud-based digitization is underway, the data that was previously scattered in spreadsheets and filing cabinets becomes centralized and actionable.
Olinga Taeed of Birmingham City University, a leading researcher on the applications of blockchain for social good, is enthusiastic about the role of procurement in enabling values-driven purchasing. He writes:
“My honest belief is that procurement will be the single largest instrument in the world to change the world—children will say they want to be a procurement officer because they will want to change the values of the world—what we buy, what we eat, what we sell, the values by which we transact. Blockchain and AI will change our processes dramatically.”
So, what’s the next step your organization will take toward building a better future?
Request a demo of Euna Procurement today to learn how purpose-built tech enables your team to reach new heights in world transformation.