State of Public Procurement 2024: The Rise of Network-Powered Procurement

Last year, Euna Solutions launched a report that focused on the bright future of public procurement and the factors driving the profession forward. This year's State of Public Procurement report jumps a step further into the evolution of procurement: bridging the gaps that exist in common public procurement practices.

The State of Public Procurement report draws from survey responses from over 100 respondents, data from government and industry sources, and anonymized information from Euna’s procurement portfolio, which has expanded beyond sourcing and contract management to include marketplace and invoicing automation. The 2024 report highlights the rise of network-powered procurement, where procurement teams leverage peer resources, insights, and larger supplier networks to address some of the most significant challenges they face today. 

The report’s key findings include: 

• Staffing and Capacity as Top Concerns: Better processes are essential for improving staff retention and productivity. Complex processes and staffing shortages are the top internal challenges, with more than half (51%) of respondents stating they are not confident, little confident, or neutral in their ability to manage increasing project volumes, up from 46% in 2023.
• Financial Uncertainty, Higher Costs, and Supply Chain Worries Loom: Survey respondents said the top two external challenges they’re most concerned about are the rising costs of goods and services and unreliable supply chains. These issues are compounded by the looming fiscal cliff, which is the result of persistent deficits and growing debt that, if not addressed, can lead to abrupt, severe economic disruptions. To navigate these challenges, procurement teams are increasingly turning to their peers for support to share best practices, gather insights, and leverage their collective buying power.
• Procurement Professionals Want to Collaborate: Collaboration among procurement professionals is on the rise, with 54% of respondents engaging with peers on a monthly or weekly basis. Interest in peer insights and resources, specifically peer project templates, has surged by 265% since 2023. Procurement professionals find the most value in cooperative and piggyback contracts, peer RFx templates, and insights from other public procurement teams.
• Strategic Programs are Driving Innovative Approaches: New approaches to procurement can be explored to boost creativity and accountability. These include challenge-based procurement, where organizations define problems and invite suppliers to propose solutions, and outcome-based contracting, which focuses on results rather than processes.
• Networks Can Reduce Costs: Finding new ways to facilitate connections internally and externally can save significant time and improve transparency. Teams using cooperative contracts can lower purchasing costs by up to 7.5% and reduce transportation costs by up to 55%.
• Full-Cycle Procurement Builds the Foundation for “Network-powered Procurement:” Comprehensive end-to-end solutions provide access to a vast network of suppliers, cooperative contracts, and peer resources. This approach creates a foundation for “network-powered procurement,” which leverages communities and shared resources among organizations to enhance efficiency, innovation, and cost-effectiveness in sourcing and supply chain management.

The right software supports your team in actioning strategic initiatives, whether they apply to your team’s metrics—like local purchasing—or larger community 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.

Want to learn more about how purpose-built solutions can build on your network-powered approach? Read the report today and visit us at booth #315 at the CAPPO Annual Conference in Sacramento, California!