Alex Saric is the chief marketing officer at Ivalua.
Public sector procurement stands at a crossroads, where the pressure to modernize systems meets the complex realities of government operations. Although the conversation often centers on replacing legacy technology, the actual transformation of public procurement extends far beyond new software implementations and digital tools. Today’s procurement professionals face a unique challenge: They must serve as stewards of taxpayer dollars while navigating outdated systems that require lengthy data cleansing efforts, manual checks and cumbersome approval processes. Procurement teams may spend weeks managing duplicate supplier records and toggling between multiple screens to match basic invoices.
However, focusing solely on technical upgrades misses the bigger picture. Transformation lies in shifting procurement from a process-driven function to a strategic asset for government agencies. Establishing a single source of truth is essential to empower procurement in this transformative shift.
When Systems Drive Away Talent
The impact of aging procurement systems extends well beyond process inefficiencies: 70% of Gen-Z employees would be willing to leave a job for one with better technology. This issue is creating a significant talent gap—just when procurement needs fresh perspectives and digital natives who can help drive modernization efforts. Instead of focusing on strategic work, procurement professionals often find themselves stuck in administrative loops, becoming intermediaries for basic processes like supplier onboarding and document routing.
These inefficiencies take their toll in the form of lost strategic opportunities. When procurement staff spend their days managing document workflows and reconciling data across multiple systems, they have little bandwidth for valuable market analysis and building stronger supplier relationships. Basic compliance checks and invoice reconciliation—tasks that modern systems could handle automatically—consume hours or days of valuable staff time.
Challenging The Status Quo
Moving public procurement forward requires challenging some common misconceptions. Many assume government workers will resist new technology, but this overlooks a simple truth: The entire U.S. workforce already navigates sophisticated technology in their daily lives. They’re not resistant to technology—they’re frustrated by outdated systems that make their jobs harder than necessary.
Recent changes in federal procurement policy underscore the importance of adaptable systems. The rescinding of procurement-related executive orders and new guidance on regulatory compliance is expected to affect everything from service contract workforce requirements to manufacturing standards. When procurement policies shift dramatically with each administration, agencies need systems that can adapt quickly to new requirements without requiring a complete overhaul.
Modern procurement systems must be flexible enough to accommodate new policies, requirements and challenges—while maintaining efficiency and compliance throughout these transitions.
Intelligence Meets Experience
The future of public procurement connects cloud technology, artificial intelligence (AI) and human expertise. Ivalua’s 2024 Future of Work in Procurement survey shows this transformation is already underway, with 75% of procurement organizations increasing their generative AI investments and 67% reporting greater automation in their processes. AI will transform how procurement teams work—serving more as an intelligent assistant than a replacement for procurement professionals. This perspective is shared across the industry, with 48% of procurement leaders viewing AI as an opportunity and only 11% as a threat.
When AI handles routine analysis and compliance checks, it essentially upskills the entire workforce. With instant access to historical pricing data, market trends and supplier performance metrics, a procurement specialist can make more informed decisions. The impact is clear: 72% of organizations Ivalua surveyed reported improved data analysis and insights due to AI adoption. This transformation particularly benefits transparency and compliance—two cornerstones of public procurement. Instead of spending hours manually checking regulations and requirements, procurement teams can use automated systems to flag potential issues.
Organizations understand the need to prepare their workforce for this evolution: 70% are actively investing in upskilling programs, and 68% are working on reskilling initiatives to help procurement professionals develop advanced data analysis capabilities and stronger negotiation skills. The benefits extend beyond government agencies. For suppliers—especially small businesses—these changes will help make government contracting more accessible by removing unnecessary complexity from the procurement process. When we open doors for innovative companies that might have previously found government contracting too cumbersome, we create stronger competition—and better value for taxpayers. Modernizing procurement systems also enables better supplier relationship management and more strategic vendor partnerships.
Building Better Public Service
The future of public procurement lies not in replacing human judgment with automation but in combining the best of both. Technology handles routine tasks and provides data-driven insights while procurement professionals apply their expertise to make strategic decisions that serve the public interest. This vision points toward procurement systems that work better for everyone—government agencies, suppliers and most importantly, the taxpayers they serve.
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