Several key factors are driving the modernization of public procurement, from the integration of emerging technologies to enhanced collaboration and efforts elevate the procurement profession. These advancements are transforming procurement practices and paving the way for a more efficient, transparent, and innovative future in the field.

At the 2025 NASPO Exchange conference, industry leaders gathered to discuss this topic and how to address challenges, opportunities, and strategies for fostering collaboration between stakeholders. Here are some key takeaways from the education session:

Innovating Public Procurement Through Digital Transformation

This session focused on the role of emerging technology in government agencies and its impact on the evolving challenges of public procurement. These advancements are helping to reshape operations within the agencies by streamlining processes and enhancing decision-making. Two emerging technologies that were at the forefront of the discussion and are believed will play a key role in continuing to transform the procurement landscape are:

• Artificial Intelligence: This technology can support smarter, more efficient procurements by analyzing large volumes of data to identify spending patterns, flag potential compliance issues, predict market trends, and even evaluate bids more consistently and fairly. It enables more informed decision-making by turning raw data into actionable insights.
• Automation Tools: Helps to reduce the time and effort spent on repetitive tasks such as invoice processing, purchase order creation, and contract management.

The implementation of these technologies in procurement processes offers significant benefits, including:

• Increased efficiency and streamlined workflows
• Reduction of time-consuming administrative tasks
• Enhanced visibility into spending, market trends, and supply chain dynamics
• Greater transparency and accountability in procurement operations

As technology continues to transform, the procurement community must embrace these innovations while recognizing that no solution is a one-and-done fix. Factors such as ongoing technology updates, talent development, and how well new tools will integrate with existing practices and processes are essential pieces to consider.

Recruiting and Talent Management

Another major point of discussion was the growing challenge of attracting and retaining skilled professionals in procurement, especially as private sector roles typically offer more competitive pay. To remain competitive, procurement leaders must find ways to offer career advancement opportunities and incentives that make public procurement an attractive and sustainable career choice.

This challenge presents an opportunity for leaders to expand talent pipelines, particularly individuals with transferable skills in logistics, compliance, contract management, and other relevant areas.

To capitalize on this shift, panelists suggested that agencies prioritize promoting career growth through clear advancement pathways. One solution we have previously explored is the growing trend of skill-based hiring, which incorporates removing traditional degree requirements to focus more on a candidate’s abilities and previous workplace experience. This approach helps agencies identify quality talent that possess the essential and transferrable skills for a procurement role even if they don’t hold a 4-year degree.

We must note that skills-based hiring is not an attempt to devalue degrees, but rather an attempt to expand the talent pool to combat the shortage of workers with degrees and credentials and the pressing need to fill vacant positions.

New research conducted by Harvard Business School and The Burning Glass Institute finds that government entities tend to outperform private firms when it comes to successfully adopting skills-based hiring practices that result in better employee retention rates. To hire for skills, firms will need to implement robust and intentional changes in their hiring practices while also investing in continuous learning and training to attract, recruit, and retain quality talent.

Strengthening Public Procurement Through Policy, Funding, and Collaboration

Beyond workforce development, procurement professionals must also focus on securing essential policy support, funding, and recognition for their field. Too often, procurement is viewed as a back-office function rather than a recognized profession and strategic driver of efficiency and innovation within a government structure.

To shift this perception, speakers emphasized the importance of strengthening relationships with the administration, agency counterparts, legislators, and other procurement professionals and associations across the country. Procurement offices must build a reputation as strategic problem solvers by identifying key performance indicators that will help highlight their value by:

• Leveraging data to support decision-making
• Providing transparency into the procurement processes
• Identifying key performance indicators that demonstrate the value brought by the office

During the discussion, the Procurement Professionals Alliance (PPA) was introduced as a major step toward elevating the procurement profession. By creating a space for connection, learning, and advocacy, PPA aims to foster meaningful collaboration among procurement professionals while strengthening the profession’s collective voice and advancing global recognition. PPA will provide procurement professionals the tools, relationships, visibility, and access to:

• Partnerships with academic institutions
• Internship and apprenticeship opportunities
• Educational programs and peer learning, helping professionals stay ahead of industry trends and best practices and certifications
• Promotional resources and national events to amplify the value and visibility of procurement work

Participants were also encouraged to utilize NASPO’s existing partnership network, which includes a network of 17 Strategic and 9 Academic Partner organizations that are already contributing to grow procurement through education, training, and collaborative initiatives.

Engaging Suppliers

A modernized procurement strategy isn’t complete without meaningful collaboration between procurement professionals and suppliers. As partners in the procurement process, suppliers, especially small and medium-sized enterprises can bring fresh perspectives, market insights, and innovative solutions that drive modernization efforts forward.

Modernizing how procurement professionals work and communicate with suppliers can lead to greater impacts, improved efficiency, better value, and more responsive procurement practices.

To build this kind of collaborative environment, NASPO leaders suggest procurement professionals can:

• Provide opportunities for suppliers to share their expertise and knowledge of the market
• Organize supplier outreach events such as expos or supplier days
• Establish clear processes and instructions for procurement processes
• Set clear guidelines on legal and ethical boundaries
• Leverage technology to identify suppliers and communicate open solicitations

Conclusion

By embracing these strategies and fostering a collaborative environment, public procurement can continue to modernize and adapt to the changing needs of government and citizens. Below are additional resources on this topic:

• Focus on the Future: How Procurement Priorities are Evolving
• Procurement in the Digital Age: Revising the Model Procurement Code – NASPO
• Quality in Focus: Time Spent Developing Procurement Training