12 Procurement Challenges

Procurement Challenge #5: Compliance

In our series highlighting 12 procurement challenges we’ve examined issues such as inefficient processes, lack of transparency, the difficulty of collecting and understanding requirements, and the pitfalls of inaccurate data. Today, we turn our focus to a critical but often daunting area of procurement: compliance. Compliance is vital for businesses to avoid fines, reputational damage, and operational disruptions. Let’s delve into the challenge and find out how innovative procurement solutions can help ensure you stay on the right side of the regulatory landscape.

The Challenge: Compliance Concerns in Procurement

Organizations across industries understand that adhering to a structured purchasing process and regulations is not only a best practice but also a mandate for many. Even private sector organizations that would seemingly not have as many compliance concerns as government agencies may find themselves with similar requirements if they do business with government or other highly regulated entities. Ensuring compliance is integrated into your procurement processes presents its challenges:

  1. Adherence to Regulations: Keeping up with the constant changes in government regulations and industry standards can be challenging and time-consuming.
  2. Enforcement: Ensuring every procurement activity adheres to the established standards can be a daunting task.
  3. Reporting: Proper documentation and reporting for audits can be labor-intensive and complex.

The Solution: Implementing Advanced Procurement Software

Compliance concerns in procurement can be effectively addressed through modern, innovative procurement solutions and best practices:

  1. Automated Compliance: Use procurement software that automatically integrates relevant regulations into your purchasing process. This ensures compliance and reduces the time and effort spent on manual checks.
  2. Documentation and Reporting: Leveraging a solution that provides comprehensive reporting capabilities helps track compliance, making audits a breeze.
  3. Regular Updates: Choose a procurement solution that regularly updates its regulatory database, ensuring you stay current with changing laws and industry standards.
  4. Training: Incorporating regular training sessions for your team can help enforce compliance and ensure they are updated with the latest regulations.

Advocating Compliance in Procurement

As procurement leaders, it’s essential to understand the implications of compliance in procurement and be a true leader for your organization (whether or not you have a dedicated Compliance team). This understanding not only helps avoid costly violations but also promotes better business practices. Leaders need to advocate for technological solutions that simplify compliance, easing the burden on the team and enhancing operational efficiency.

Emphasizing compliance shows your commitment to ethical business practices, positioning you as a thought leader in your organization and the industry. This forward-thinking approach boosts your credibility and builds trust with your stakeholders, from vendors to customers.


Compliance is a critical facet of procurement, and while it presents challenges, it need not be a hindrance. Through advanced procurement solutions and a commitment to best practices, businesses can seamlessly navigate the regulatory landscape.

In our next installment, we will discuss another crucial procurement challenge and offer insights on how to tackle it. By understanding and addressing these challenges, your organization can build an efficient and strategic procurement function that delivers sustainable value.

We’d like to hear from you what you’ve done to overcome this challenge, or, if you’re still struggling with it, you can book a free consultation with our procurement experts to develop or refine your strategy.

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