The future of digital procurement is further simplification of procurement processes. According to a report by Forrester, orchestration is a growing trend that results in massive cost savings. Orchestration is when public sector bodies use a centralised control system to coordinate different procurement activities, using different procurement tools.
It’s a lot like integration. Buyers occupy their central hub and integrate other tools for a comprehensive procurement process.
Industry insiders anticipate greater flexibility in public sector tendering, largely by publishing shorter contracts (ideal for SMEs) that can be quickly adapted to suit changing markets, which could herald more favourable economic conditions.
AI is once again in the mix, as algorithms evolve to take on more tasks and activities, including evaluating and selecting suppliers. We’ll talk about this more later in the post, but for now, it’s useful to know that Delta eSourcing evolves alongside the market and continues to provide expert guidance and support for public sector buyers and suppliers.
Let’s move on.
Key Trends Reshaping Public Procurement in the UK
There are six key trends public procurement stakeholders need to consider in 2025.
1) The Procurement Act & Regulatory Changes
The Procurement Act’s reforms apply to digital marketplaces as much as any other aspect of public sector procurement. Buyers must prioritise fairness, transparency, social value, innovation, efficiency, and overall value.
All suppliers, including SMEs, must be treated equally during the purchasing process, promoting fair competition.
The aim is to encourage greater participation in public procurement while maximising the worth or value for money from each tender.
2) AI & Procurement Technology
AI is a growing force in public procurement. Tech is advancing rapidly, which enables procurement systems to take on more basic functions and even some not-so-basic ones. Algorithms enable AI to make important decisions based on data analysis, making the procurement processes more efficient, accurate, and compliant with the Act’s regulations.
Machine Learning (ML) and Natural Language Processing (NLP) will increasingly be used to analyse data to predict trends and patterns and extract key information from contracts (terms and conditions, proposals).
Other AI and automation applications include:
- Supplier selection (bid evaluation): Match contract requirements with suppliers’ products, services, works, qualifications, and compliance records.
- Contract management: Automated contract review and analysis for more efficient reviews.
- Risk management: Risk identification, assessment, and mitigation, including fraud detection and prevention.
3) Social Value & ESG Compliance
Social value and ESG (Environmental, Social, and Governance) are similar, but not the same. ESG is integrated into procurement practices and activities. It overarches the entire process, whereas social value is specific to individual contracts.
Social value is crucial for local council contracts. Digital marketplaces help outline specific social value goals and encourage transparent strategies that inform suppliers about expected social value contributions.
ESG principles include:
- Environmental sustainability: Procurement processes, including supplier activities, have minimal environmental impact. Aims include carbon emission reductions, resource conservation, and sustainable sourcing.
- Social responsibility: Suppliers must comply with ethical labour laws, promote diversity and inclusion in employment practices, and uplift local communities.
- Governance and ethics: The entire procurement process must comply with the Procurement Act, other laws and regulations, and industry standards, as well as uphold transparency and accountability in the sector.
Digital solutions, like marketplaces and procurement platforms, provide tools that keep track of suppliers’ sustainability practices and ensure they are compliant at each step in the purchasing process. Suppliers can also ensure that their practices meet sustainability standards to remain competitive in the industry.
4) Data-Driven Procurement Decisions
One of the great things about the features and functions of modern digital marketplaces is the access to real-time data. Real-time data is transforming procurement because it enables real-time updates and analysis.
New reports can be generated virtually immediately, giving buyers insight into the current state of the market so they have all the information they need to make informed decisions to take advantage of opportunities, avoid risks, and adjust contract requirements to suit.
5) Cybersecurity Compliance & Risk Management
Data security is serious business in the public sector. Contracting authorities must ensure their systems remain secure by choosing suppliers with robust cybersecurity systems in place. At the very least, suppliers must be Cyber Essentials or Cyber Essentials Plus certified.
Buyers can increase security requirements if the contract demands it, by including ISO certifications and accreditation. In fact, it’s recommended that suppliers obtain additional security certifications anyway, especially in industries like defence and healthcare.
6) Supply Chain Resilience
Supply chain resilience is integral to effective procurement operations. Digital marketplaces empower organisations to identify suppliers quickly, assess potential risks, and implement robust contingency plans. Advanced analytics predict supply chain issues before they escalate, allowing procurement teams to take preventative action.
Procurement teams can enhance supply chain resilience in digital marketplaces by:
- Implementing real-time monitoring and supplier performance tracking to identify and address issues promptly.
- Using data analytics to pinpoint potential risks and disruptions.
- Developing contingency plans and alternative sourcing strategies to maintain supply chain continuity.
- Fostering collaboration with suppliers to improve communication and transparency, building stronger, more resilient relationships.
- Investing in cutting-edge procurement technology to streamline supply chain operations and enhance overall efficiency.
By adopting these strategies, procurement teams can strengthen their supply chains, ensuring they remain robust and adaptable.
Leveraging Digital Marketplaces for Effective Contract Management
The Benefits of Digital Marketplaces in Public Procurement
Digital marketplaces are sites dedicated to online transactions, like Amazon and Airbnb. They benefit public sector procurement in many ways, for both buyers and suppliers. Let’s look at buyers first.
Buyers’ benefits
Digital marketplaces ensure efficiency and transparency in the public procurement process. Together, they usually lead to a third primary benefit – cost savings. With tight budgets a perennial problem, all cost-saving opportunities are carefully considered.
The tools also provide several handy features, like tracking and reporting. This aids supplier performance and contract management. The diverse reporting capabilities provide insight for data-driven decision-making.
Buyers also have access to a wide supplier pool, which does two things. It provides a diverse range of suppliers to keep the supplier pool fresh. The diversity of suppliers all but ensures they’ll find precisely what they’re looking for.
Suppliers’ benefits
Digital marketplaces provide suppliers with a platform that increases their visibility, improving their chances of winning contracts. Marketplaces also provide a platform that simplifies the tender process, making it easier to take advantage of available opportunities.
The tools that provide buyers with insight and information do the same for suppliers. The platform ensures suppliers have access to procurement insights that drive informed decision-making, enabling suppliers to identify and analyse opportunities before bidding on contracts.
Delta eSourcing Drives Innovation in Digital Procurement
Delta eSourcing is a comprehensive digital procurement platform that provides end-to-end eSourcing tools for buyers and suppliers. We deliver AI-powered analytics that provides insights into frameworks and framework suppliers and Dynamic Purchasing Systems (DPS) and DPS suppliers.
The result is a competitive environment that naturally leads to innovation, as suppliers work furiously to make their mark and stand out from the crowd.
Our contract management tool enables buyers and the procurement team to optimise supplier performance while maintaining compliance standards.
Our market intelligence tools track procurement trends and opportunities in the public sector market that enhance the purchasing process for buyers and suppliers.
Book a free demo to find out more about our procurement services, or explore the Delta eSourcing website for solutions that match your needs.
