**Washington**: State procurement offices across the USA are undergoing transformation as they adapt to technology while ensuring compliance with outdated regulations. Expert Mark Christensen stresses the importance of modernising procurement codes to enhance efficiency, transparency, and adoption of digital tools in government operations.
State procurement offices across the United States are facing significant transformation challenges as they adapt to modern technological advancements while remaining compliant with established regulations. The necessity for compliance has historically constrained procurement staff, compelling them to closely adhere to the laws specific to their jurisdictions, which in many cases were formulated well before the advent of digital systems, artificial intelligence (AI), and other contemporary technologies.
Mark Christensen, a notable voice in the discussion of procurement transformation, emphasises the need for modernisation of these procurement codes. Speaking to StateTech Magazine, he stated, “A lot of the procurement codes and regulations organizations have to deal with were written before we even had eProcurement systems, AI and a lot of other technologies. That means some procurement codes need to be updated to account for a lot of the situations that we find ourselves in these days.”
Despite these challenges, Christensen highlights the strides procurement offices have made in embracing digital technologies. He pointed out that these advancements promote transparency as all transactions are meticulously tracked and logged, ensuring a formidable audit trail. He elaborated on how embracing technology can revolutionise traditional procurement processes.
The ongoing digitisation of procurement requires robust change management, focused training, and the careful selection of use cases with input from the end users. Christensen noted, “It’s hard to get people to adopt new technologies when they’re very used to what they’ve had or what they’ve always used. They need to feel like they have a voice and that their concerns are heard and addressed.”
The impact of digital technologies extends beyond regulatory compliance; they also significantly enhance efficiency within procurement offices. Christensen explained that the elimination of time-consuming processes allows resources to be redirected towards training, certification, and initiatives that foster continuous improvements in customer service. For instance, automating the three-way matching process for purchase-order verification exemplifies how technology can streamline operations. Advanced tools like intelligent document processing and robotic process automation can be integrated with enterprise resource planning systems to facilitate better expense reconciliation linked to procurement activities. This, in turn, frees employees to concentrate more on problem-solving and cooperative engagements with other agencies.
On a larger scale, federal agencies are also exploring automation in vendor responsibility reviews. Christensen noted that several agencies have begun developing tools capable of autonomously scouring databases to identify vendors with delivery issues or to flag those with notable positive feedback from other organisations.
The rapid advancements in digital technology also offer promising applications within procurement, such as the utilisation of generative AI as a research assistant. This has implications for the development of requests for proposals (RFPs), and private-sector organisations are already employing AI chatbots to respond to queries related to RFPs.
As state procurement offices navigate the complexities of modernisation and compliance, the integration of digital technologies indicates a significant shift towards enhanced efficiency and transparency in their operations.
Source: Noah Wire Services
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