How U.S. Procurement Teams Are Using Technology to Do More With Less
Key Takeaways:
Agencies using full-cycle procurement platforms saved an average of $34,762 per project through more efficient sourcing, contracting, and supplier management.
55% of teams reported flat budgets even as rising costs and inflation drive greater demand on procurement operations.
28% of teams named automation their top priority for 2025 to handle rising workloads with small staffs, over half of which have just one to five people.
Across the United States, public procurement teams are facing the same challenge from coast to coast: budgets have stayed flat, but the costs of goods and services keep rising.
A recent report noted that 55 percent of agencies reported no budget growth this year, while citing rising costs and economic uncertainty as their top external pressures. These conditions have forced local governments to squeeze more value from every dollar, and technology is quickly becoming a powerful tool to do it.
Most public purchasing still happens in small, lean teams. Over half of the agencies surveyed said they operate with just one to five staff members. These small groups are expected to manage thousands of contracts and bids each year while responding to urgent, last-minute requests, which 23 percent of teams named as a major internal challenge. This combination of tight staffing and rising demand has made automation a top priority: 28 percent of teams listed streamlining and automating processes as their number one goal for 2025.
The payoff from adopting modern procurement platforms has been dramatic. The analysis found that agencies using full-cycle procurement tools saved an average of $34,762 per project through more efficient sourcing, contracting, and supplier management. These tools cut the average time required for a procurement which can exceed 87 hours for a single project, by reducing handoffs, automating document flows, and eliminating rework. Leveraging purchasing coops is another major advantage that can save significant time and cost.
Teams are also starting to close critical gaps in their digital toolkit. While most agencies have foundational systems like ERPs and purchase order software, many lack purpose-built tools for procurementʼs unique demands. The report shows rising adoption of contract lifecycle management platforms, intake request software, invoice automation, and supplier performance monitoring, with 44 percent of agencies already using specialized sourcing tools. These systems integrate with existing ERPs while providing the depth needed to manage procurement from intake to invoice.
By digitizing the procurement process, teams are shifting from reactive to proactive. Instead of chasing down late approvals or tracking compliance in spreadsheets, they are gaining real-time visibility, surfacing risks early, and freeing staff to focus on strategy. For U.S. cities and counties, 2025 is showing that smarter procurement is not about spending more, it is about planning and spending better.
If you need help in implementing new digital tools for procurement, reach out to Fractional Source.
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