Technology and automation are transforming how procurement teams manage purchasing processes, supplier relationships, and regulatory compliance. But for many agencies, budget size and agency resources play a decisive role in determining how much technology is adopted, and to what extent.
PlanetBids’ 2024 State of Procurement survey reveals that larger budgets and greater organizational resources often correlate with higher levels of automation, while smaller agencies tend to be stuck with manual, resource-intensive processes.
Let’s dive into these findings a little more.
According to the survey, organizations with budgets of $50 million or more are leading in procurement automation. These agencies have the time and resources to invest in eProcurement software solutions, automated workflow creation, and risk management tools, allowing them to optimize their day-to-day operations and make more data-driven decisions. In fact, 59% of agencies with $50 million+ budgets reported high levels of automation, which directly supports faster decision making, improved compliance, and scalable processes that reduce human error.
Want an overview of the 2024 State of Procurement’s findings? Read the executive summary here.
For agencies with budgets under $5 million, automation is far more limited. These smaller organizations often operate with manual processes that consume valuable time and resources, leading to bottlenecks and reduced efficiency.
Meanwhile, these agencies often don’t feel they have the luxury of free time to devote to researching, selecting, adopting, and implementing software systems that could ultimately save them headaches in the long run. Only 9% of agencies with budgets under $5 million report substantial automation, underscoring the difficulties smaller agencies face in adopting technology that can streamline procurement operations.
Automation is increasingly being viewed as essential for procurement efficiency, enabling faster bid creation, quicker approvals, better data insights, and improved risk management. For procurement teams with the resources to dedicate to automation, these benefits create significant advantages in achieving organizational goals and improving overall productivity.
However, for smaller teams with limited budgets, achieving similar results can be challenging without scalable solutions. Still, these smaller agencies must find the resources – including time, money, and personnel – to implement the processes that will ultimately streamline their operations.
Even with limited budgets and restricted free time, automation can be within reach. Our survey highlights prioritization of scalable solutions. Software solutions with multiple individual modules that can work independently or together allow smaller agencies to automate key areas like supplier management, contract management, and bid evaluation first.
These focused areas of automation can bring immediate efficiencies without overextending resources, helping smaller teams bridge the gap and remain competitive. Over time, additional modules can be added to further streamline and refine processes, ultimately helping them realize further efficiency.
In addition, software providers that offer rapid, easy implementation and ongoing training can help smaller agencies get up and running in their new technology quickly, avoiding the dreaded dragging timeline usually associated with adopting new software solutions. Users can quickly begin performing their basic functions in the software, then continue learning the more in-depth nuances and features with online training resources on their own time.
Download the full 2024 State of Procurement Report to learn more about how budget, agency size, and technology adoption are reshaping the future of procurement.