There has been a consistent trend in procurement of prioritizing strategic initiatives, such as expanding affordable housing options, enhancing broadband connectivity, and improving transportation infrastructure. However, there is also another trend: historically, there is a possibility to fall into a cycle of reaction rather than proactive planning – which makes achieving strategic initiatives more difficult. However, this trend is changing due to the strengthening of internal and external networks and an increasing demand for transparency and tangible results.
Aligning existing processes with strategic goals to create a successful procurement strategy is extremely amplified with Network-Powered Procurement. This approach involves tapping into the insights and resources of other procurement professionals and their suppliers, helping facilitate knowledge sharing, collaboration, and efficiency. By tapping into up an interconnected system of buyers and suppliers, your team can discover innovative ways to support your community and drive meaningful impact.
Depending on your jurisdiction, project scope, or funding source, critical elements of these strategic objectives might include promoting supplier diversity, sustainability, and local purchasing.
Key Priorities We’re Seeing in the Industry
The key priorities identified in the industry today reflect a strong commitment to creating more inclusive, sustainable, and locally-focused procurement practices that positively affect surrounding communities.
Survey data from our 2024 State of Public Procurement report shows that over half of public procurement teams are working on relevant, strategic procurement programs:
- 23.3% have a supplier diversity program
- 5.8% are focused on sustainability
- 29.1% are working on both
Moreover, most of these programs have been in operation for over five years, illustrating continuous improvement to move beyond administrative tasks and toward the creation of meaningful, lasting community impact. In fact, 76% of the respondents to our State of Public Procurement survey mention that they feel it’s important to spend money with local suppliers, underscoring the priority to support local economies and foster greater supplier relationship management.
Building supplier relationships with local businesses can lead to numerous benefits including faster lead times, cost reduction, creation of a more resilient supply chain, and a boost to the local economy.
With teams eager to transition from the conceptual stages of strategic practices to tangible, impactful efforts, it’s crucial that they have methods in place to clearly demonstrate their procurement performance results and enhance the transparency of their procurement processes.
Demonstrating Results and Increasing Transparency in Your Procurement Process
Demonstrating results to the city council and the public, or using those results internally for improvement, is critical. The right software supports your team in actioning strategic initiatives, whether they apply to your team’s metrics—like local purchasing—or larger organizational goals like affordable housing. These tools can track things like cost savings and diversity initiatives, which can be leveraged to share internally to key stakeholders and externally to the community.
Advanced analytics can simplify your team’s efforts and reduce the workload. By using strategic sourcing, contracting, marketplace, and invoicing tools, you can streamline decision-making processes and provide clear insights to stakeholders, improving accountability and building trust within the community. Additionally, these tools enable your team to optimize procurement strategies through data-driven decisions, driving better outcomes, ensuring proper resource allocation, and advancing greater operational efficiency.
Building Strong Networks with Procurement Software
Strengthening your networks and collaborating with suppliers, internal stakeholders, and the public procurement community can help your organization see impactful outcomes. By establishing robust connections and leveraging collective knowledge, your procurement team can drive strategic goals more effectively, ensuring your community thrives.
The commitment to supplier diversity, sustainability, and local purchasing in the survey data reflects a broader dedication to making procurement a more strategic function. In addition, through thoughtful procurement strategies, you not only meet immediate needs but also contribute to long-term community well-being.
Advancing your procurement strategies through network-powered approaches and robust analytical tools doesn’t just streamline processes—it transforms your initiatives into powerful drivers of positive, transparent, and impactful change.
Ready to learn how you can drive strategic change through an effective procurement strategy? Request a demo of Euna Procurement today.
