4 Biggest Challenges Facing the Public Procurement Process
The procurement process forms an integral part of any organization’s process-driven and innovation strategies to improve efficiency, reduce costs, and make advancements. When it comes to the public procurement process, there are several unique roadblocks to implementing these strategies processes, and systems successfully into existing operations. This makes the public procurement process more time-consuming, inefficient […]
The procurement process forms an integral part of any organization’s process-driven and innovation strategies to improve efficiency, reduce costs, and make advancements. When it comes to the public procurement process, there are several unique roadblocks to implementing these strategies processes, and systems successfully into existing operations. This makes the public procurement process more time-consuming, inefficient and costly. Consequently, the communication channel is not solid, supply becomes unstable, and quality deteriorates. In this article, we have discussed in detail some of the biggest challenges in the public procurement process and the ways to mitigate them. Also, we have suggested a few measures to tackle those challenges efficiently.
Challenges in the Public Procurement Process
Challenge#1: Realizing the true benefits of analytics
Today, the public procurement process is facing challenges while realizing the true potential of analytics in procurement. Challenges lie in understanding the commercial and technical attributes of the supply chain ecosystem as well as advanced modeling and statistical capabilities. Also, the public procurement process faces challenges in terms of identifying the ability of analytics to mitigate disruption, forecast revenue, identify opportunities in the market, and much more.
Challenge#2:Adopting sustainable procurement practices
With growing consumers’ demand, public organizations will need to have a unique point of difference in the public procurement process to seek the attention of consumers and boost sales. To achieve this, public organizations can use sustainability as their selling point to draw in consumers.
Challenge#3: Getting the most out of suppliers
This is one of the biggest challenges any public procurement process faces. Not only is it tough to find good-quality suppliers, even with the most rigorous process, but it can also be equally difficult to qualify them. One of the major components to vendor selection should be their flexibility level. Also, managing the suppliers is equally challenging and this is why it becomes important to create open lines of communication. By establishing a supportive communication channel with the suppliers, it becomes easy to work through these obstacles. Effective supply chain assurance and compliance are key to developing healthy relationships with manufacturers, suppliers, and procurement departments.
Challenge#4: Developing strategies to engage with suppliers effectively
Developing strategies to engage effectively with suppliers is a big challenge for any public procurement process. It is important to establish a proper supplier risk management system. Also, it is highly necessary to create proper communication with the suppliers to avoid confusions, delays, and disagreements in the public procurement process.
With years of expertise in offering procurement and supply market intelligence solutions, SpendEdge delivers insights into the procurement process and helps businesses to gain information for timely decision making. Also, it helps businesses to deal with uncertainties, volatility, disruptions, and ambiguity with ease. Additionally, SpendEdge’s market intelligence solutions assist businesses in monitoring the supply market conditions closely and devise effective strategies for procurement and sourcing excellence.
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