by Lourdes Coss, MPA, NIGP-CPP, CPPO
Public procurement has come a long way from being viewed merely as an administrative function focused on issuing purchase orders and securing the lowest price. Today, procurement leaders are increasingly being called upon to act as strategic partners—helping their agencies deliver greater value, foster innovation, and achieve policy goals. This transformation requires a mindset shift and a deliberate redefinition of priorities, capabilities, and relationships.
The Problem with a Transactional Mindset
A transactional procurement model centers around compliance, routine processing, and price-based decisions. While these tasks are necessary, they represent only a fraction of procurement’s true potential. This narrow view can lead to missed opportunities, increased risk exposure, and diminished organizational impact.
In today’s complex and resource-constrained environment, procurement professionals are expected to do more than process paperwork. They’re expected to anticipate needs, manage risk, steward public funds with foresight, and partner across departments to solve organizational challenges.
Why Strategic Procurement Matters
Strategic procurement aligns purchasing activities with an organization’s broader goals—such as improving service delivery, achieving sustainability, supporting economic inclusion, and managing long-term costs. This requires a deep understanding of agency mission, stakeholder needs, market dynamics, and risk.
In doing so, procurement can:
- Drive innovation by encouraging suppliers to propose new solutions.
- Stimulate economic development by creating opportunities for local and diverse suppliers.
- Strengthen operational resilience by planning ahead and managing supplier risk.
- Support strategic initiatives such as climate action, digital transformation, or equity goals.
It’s no longer just about what we buy—it’s about why and how we buy.
Key Shifts Procurement Leaders Must Embrace
To transition from transactional to strategic, public procurement professionals must make intentional shifts in these core areas:
1. From Process-Driven to Purpose-Driven
Instead of focusing solely on compliance and process adherence, strategic procurement aligns its work with mission-critical goals. This means asking: How does this procurement decision support our agency’s long-term objectives?
2. From Price-Focused to Value-Focused
Lowest cost doesn’t always mean best value. Consider lifecycle costs, performance outcomes, risk mitigation, and socio-economic benefits when evaluating proposals.
3. From Reactive to Proactive
Strategic procurement professionals anticipate agency needs, develop procurement pipelines, and engage with market research early to shape better outcomes.
4. From Siloed to Collaborative
Break down silos between procurement, finance, operations, and program managers. Co-create strategies that reflect shared goals and deliver greater impact.
Steps to Get There
Here are several actionable steps to help procurement teams elevate their role:
- Clarify Strategic Priorities: Understand your agency’s top objectives and align procurement plans accordingly.
- Engage Early and Often: Involve stakeholders in planning, and conduct market research before issuing solicitations.
- Invest in Talent and Tools: Build procurement capabilities through professional development, certification programs, and data-driven tools.
- Track Performance Beyond Cost Savings: Use KPIs that measure supplier performance, customer satisfaction, diversity inclusion, innovation, and sustainability.
A Final Thought
Strategic procurement doesn’t happen by accident—it requires leadership, intention, and a commitment to continuous learning. As procurement professionals, we must advocate for our function to be seen not just as a support service, but as a driver of strategic value.
Redefining procurement starts with each of us asking: Are we merely processing purchases, or are we helping our organizations solve problems and achieve their mission? The answer to that question will define the future of public procurement.