As the UK’s cost of living crisis continues – given its likelihood to grow in the current geopolitical landscape – the British public is increasingly searching for ways to save money. Naturally, this heightens interest in how taxpayer funds are spent, placing regulators firmly in the public spotlight and under growing scrutiny.
Chief Procurement Officers (CPOs) lead the teams responsible for managing public spending, and as scrutiny increases, their work becomes more visible.. The public expects procurement within regulatory organisations to operate transparently, deliver measurable value, reduce unnecessary spend, and demonstrate strong standards in social value and sustainability. In short: procurement must not only be effective, but be seen in order to be effective.
To deliver this, procurement teams must make clear and defensible decisions. This often means collaborating with a broad mix of external government stakeholders – departments, advisory bodies, lobby groups – as well as internal teams. With so many parties involved, everyone has a voice, and everyone has a stake in the decisions being made.
Decision by committee
This puts procurement teams in a complex position – balancing what the public wants, what the government wants, and what internal stakeholders want. As representatives of regulatory institutions, they must also ensure strict compliance at every stage. This means structured processes around supplier selection, contract management, governance, reporting, and verification to ensure decisions align with policy and follow fair, transparent procedures.
Naturally, such a multi-stakeholder environment doesn’t lend itself to fast decision-making. However, procurement still needs to deliver on its objectives – improving value, demonstrating good governance, and maintaining public trust.
So, how can procurement teams in regulatory settings get the most from this collaborative decision-making structure, while remaining compliant and meeting public expectations?
Success often depends on focusing on the areas that set them up to thrive. CPOs looking to be effective under public scrutiny should prioritise three key areas: supplier collaboration, data analytics and ethical sourcing.
Help suppliers do their best
The mantra for supplier relationships should be: “How can we help suppliers to help us?” Procurement teams should view their suppliers as strategic partners rather than transactional vendors, and treat them accordingly. This enables suppliers to deliver stronger outcomes, even under complex stakeholder environments.
A practical place to start is with long-term suppliers. Many relationships in the public sector can last beyond an initial contract – as eight to ten years, or longer. When suppliers are embedded in the organisation for the long haul, it makes sense to invest in their capability. Upskilling key suppliers on regulatory changes, compliance expectations, or emerging policies strengthens their ability to deliver higher-quality services and reduces friction later.
When suppliers are aligned, capable, and supported, it becomes much easier for procurement to manage expectations from multiple directions – government, internal teams, and the public.
Additionally, procurement should receive training in this area. The ability to manage and collaborate effectively with suppliers is a skill that can be developed and refined. When teams cultivate the emotional intelligence and trust-building skills needed to nurture these vital relationships, they can encourage suppliers to innovate and deliver higher-quality work. Ultimately, this strengthens procurement’s capability and enhances its ability to meet the needs of its internal stakeholders, government partners, and the public.
Data analytics
When there is a wide group of decision-makers, procurement can easily find itself in a position where parties take different stances, and progress slows. When there are stalemates, procurement’s best strategy is to leverage data.
Procurement teams should invest in technology that makes good data a priority. The aim is to ensure that accurate, up-to-date data is always available when it’s needed. Digitisation is key to achieving this. Trustworthy data will inform procurement decisions across multiple areas, including supplier selection, performance management, spending, and ESG considerations.
Additionally, CPOs should place a strong emphasis on data analytics to support decision-making and supplier evaluation processes. To maximise the value of data, teams should be upskilled in using the right tools and interpreting insights effectively. When used well, data analytics can help procurement teams predict future outcomes, identify potential risks and guide group decisions in a more informed, confident way.
Sustainable and ethical sourcing
Ethical sourcing is a topic that quickly attracts public attention.People want reassurance that regulators are meeting compliance standards and upholding social and environmental responsibilities throughout the supply chain. Consequently, procurement teams are increasingly evaluating suppliers based on carbon footprints, ESG performance, and their ability to meet other key criteria.
The larger and more complex the supply chain, the greater the challenge. To select the most appropriate suppliers, procurement should combine reliable supplier data, strong supplier relationships, and ongoing training. Teams can benefit from courses on sustainable procurement and ethical sourcing standards, which help build the necessary skills for assessment and evaluation. This not only helps ensure compliance but also equips teams to lead discussions with the wider stakeholder group on sustainability and social responsibility.
So, as procurement teams for regulators strive to deliver the best outcomes for the public, while balancing input from multiple stakeholders, they can succeed by focusing on the right strategic priorities. Leaders who encourage their teams collaborate with suppliers, leverage accurate data, and prioritise ethical sourcing will be well positioned to meet their mandates effectively, consistently, and transparently.