Jul 19, 2022

How can government agencies streamline procurement processes and what’s keeping them from it?

Globally, governments spend U.S. $13 trillion annually on the procurement of goods and services that are needed for the day-to-day operations of the society. This includes computers, medical devices, legal services, gas, electricity, and so on. Considering this spend and how essential public procurement is for everyday life, it is imperative for government procurement agencies to function efficiently.  


Agencies across North America have been increasingly calling for digital transformation of procurement systems in order to help streamline the entire procurement process. A recent survey lists ‘streamlining procurement processes’ to be among the top 10 priorities for local government IT officials. Moreover, COVID-19 pandemic and the shifting workforce have created a need for increased mobility within the public sector. As a result, digitization of public procurement has become more essential now than ever before. Agencies want to promote flexibility, expedite operations, and generate better opportunities for small businesses all while bringing in more value for every dollar spent.   


Furthermore, procurement departments have seen important cutbacks in terms of budget and personnel in the past years as well as an increase in the overall workload they are expected to manage. This is compelling them to do more with less and is adding pressure on government agencies for increased automation when it comes to procurement procedures, vendor management, contract management and more.  


That being said, local governments often struggle with a seamless tech integration due to existing procurement policies. State purchasing regulations and local laws govern how purchasing officers conduct their business, including the tools and systems they use. More often than not, these policies tend to be outdated, restrictive, or simply too complicated for everyday tech to implement. This struggle to navigate government regulation has created a need for digital procurement solutions custom built for the public sector that are secure, easily audited, and can seamlessly integrate with any other existing technology, enabling government agencies to track and ensure strict compliance with procurement laws and procedures.  


Another big challenge for agencies to overcome when digitizing their operations is the sometimes rigorous and costly implementation process. Which is why, countless agencies across North America, especially smaller ones, still rely on manual procedures for procuring goods and services. This creates more complexity and frustration, making the procurement process largely inefficient.  


mdf commerce is a leading eprocurement solutions provider for government agencies across North America. eprocurement solutions from mdf commerce including BidNet Direct, Periscope, and MERX are built for the public sector and navigate well the complexities of decentralized procurement departments and public policy framework, enabling government agencies with technology that is both efficient and compliant.  


Take for example, Periscope’s ePRO, a procure-to-pay solution that facilitates a marketplace like experience while seamlessly integrating procurement software, NIGP coding, sourcing, receiving, vendor registration, vendor management, bidding, quotes, accounts payable, government-to-business punch-outs, and requisitioning – all web-enabled. 


mdf’s eprocurement solutions are a one-stop-shop for your supplier management system, contract management system, and all things eprocurement. They offer increased efficiency all while promoting a fair and transparent procurement process. They also ensure continuity and consolidate the efforts of various departments, helping agencies gain visibility into and manage supplier networks, facilitate collaboration, optimize participation and meet their D&I goals. 


Government agencies will have to leverage eprocurement  to take advantage of all the benefits that digitization can offer. Without the most up-to-date technology at their disposal, government officials will struggle to provide citizens and partners with the best possible experience. For the public procurement sector to remain resilient in face of this volatility and uncertainty created by international supply chain disruptions and other after effects of the pandemic, digitizing end-to-end procurement is the only way forward. 


Read our latest blog on unlocking the power of public procurement with tech-forward solutions built for the public sector to learn more.