Dec 04, 2023
New procurement technologies are transforming traditional procurement practices to make them more automated, efficient and data-driven. But while the technology is changing, the key concerns around public and private sector procurement remain the same: cost efficiency, quality control and procurement compliance. In particular, the need to adhere to legal, ethical and regulatory standards in procurement practices remains pertinent.
In this article we will explore the complex process of adhering to legal standards and industry regulations, and examine how digital technologies can make procurement compliance easier and more transparent.
Public sector procurement regulations and private sector standards
In general, the public sector is held to higher levels of accountability when it comes to procurement compliance. A complex combination of directives, regulations and policies govern the procurement process, with the aim of ensuring quality, reliability, and value for the public purse, and the new Procurement Bill will introduce further requirements for transparency and accountability.
That’s not to say that procurement compliance and regulation is not important in the private sector too. At Arrimo, we regularly support our private sector clients to navigate the particular laws, standards and procedures that govern the purchasing of goods and services in their field. Contract and competition laws must still be adhered to, and compliance with voluntary standards like ISO and the Ethical Trading Initiative is desirable for best practice.
Internal standards and processes
In addition to external procurement standards and specifications, it’s important for organisations to also develop their own internal procurement processes. Having a clearly defined workflow and a specific list of requirements for the supply chain makes it easier to manage resources efficiently, uphold quality standards, and adhere to your own ethical guidelines. Creating a clear procurement process also fosters an environment of transparency, accountability and continuous improvement in procurement functions.
Our procurement and governance specialists can help you to develop a procurement process that complies fully with all legal requirements. We’ll support you to create a policy document that establishes a clear hierarchy for approvals and decision-making, aligns procurement activities with organisational objectives, and ensures that ethical and sustainability standards are maintained.
Digital audit trails for procurement compliance
The advent of digital procurement (sometimes known as e-procurement) is making it easier to measure and demonstrate procurement compliance.
Using digital procurement tools, it’s possible to create digital audit trails that automatically document all procurement activities, creating a transparent and searchable record for audits. Each entry in the audit trail is timestamped, providing a chronological record of events and offering complete visibility into the procurement process for internal stakeholders and auditors.
When it comes to reporting, digital procurement tools can easily generate custom reports to analyse compliance metrics. They can also make it more efficient to create and submit any reports required by regulatory bodies.
We can support you to introduce digital procurement tools and enhance the efficiency, transparency and effectiveness of the procurement processes within your organisation.
Contact us
We offer a range of fixed price and bespoke procurement solutions, for procurement compliance in the public and private sectors. Contact us to find out more.
