Public sector business has long been one of the most stable and predictable markets for suppliers. But public procurement is changing. In Norway, Parliament has approved amendments to the Public Procurement Act that aim to simplify smaller procurements while placing greater emphasis on sustainability, social responsibility and strategic procurement practices (Stortinget, 2026).

One of the most significant changes is the increase of the procurement threshold from NOK 100,000 to NOK 500,000. According to Anbud365, several of these changes could come into force as early as July 1, 2026 (Anbud365, 2026). For public buyers, this means greater flexibility and less administrative burden. For suppliers, however, it creates a very different challenge: more public sector business may happen outside the traditional tendering processes suppliers are used to monitoring.

This changes the competitive landscape.

 

 

A Larger Part of the Market May Become Less Visible

The opportunities themselves are not disappearing. Public organisations will still buy products, services and technology. Budgets will still be allocated and contracts will still be awarded.

What changes is visibility.

Suppliers that rely entirely on published tenders may only see part of the market moving forward. When more purchases can be handled below procurement thresholds, opportunities may emerge through smaller procurement processes, direct sourcing or earlier market dialogue instead of large formal tenders.

This creates a clear shift from reactive selling to proactive selling.

A reactive approach focuses on responding once a tender has already been published. A proactive approach focuses on identifying needs before the procurement process formally begins.

That distinction is becoming increasingly important.

 

 

Competition Starts Earlier Than Many Suppliers Realise

In a formally advertised procurement, competition is transparent. Every supplier receives the same information and competes within the same framework.

But smaller procurements often work differently. In those cases, factors such as supplier visibility, prior dialogue, market understanding and existing relationships can play a much larger role.

This does not necessarily make the market less competitive. It simply changes where competition begins.

Competition no longer starts when the tender is published. It starts when the need is first identified.

That need may appear in a municipal budget discussion, a board meeting, a digitalisation initiative or a decision related to sustainability, security or operational efficiency. It may also emerge when an existing contract is approaching expiration.

As highlighted in Mercell’s article about meeting minutes, many public sector opportunities begin taking shape long before a tender is officially published (Mercell, “Meeting Minutes”). By the time a procurement reaches the market, many of the most important discussions have often already taken place.

This is why suppliers that rely only on tender notices may find themselves entering the process too late.

 

 

Visibility Becomes a Competitive Advantage

Public organisations need to understand the market before they buy. They need insight into available solutions, realistic requirements and potential suppliers. That is why early market dialogue, RFIs, procurement plans and even public meeting minutes have become increasingly important sources of insight for suppliers working strategically with public sector sales.

Mercell has previously highlighted how early dialogue allows suppliers to engage with buyers before needs and requirements are fully formalised (“The Power of Dialogue”, Mercell). When more contracts move below procurement thresholds, this becomes even more critical.

If public organisations are no longer required to launch a large formal tender for smaller purchases, one question becomes increasingly important:

Which suppliers are already visible and known to the buyer?

This is not about bypassing procurement rules or influencing buyers improperly. It is about building credibility, relevance and awareness before a purchasing process formally begins.

Suppliers that establish themselves early are often in a much stronger position than those who only appear once a deadline is already approaching.

 

 

Proactivity Is Not About Aggressive Selling

Proactive public sector sales are sometimes misunderstood as simply pushing harder. In reality, it is about understanding the market better than competitors do.

That means suppliers need to know:

• which organisations are planning investments
• which contracts are approaching renewal
• which political or operational decisions may lead to future procurement activity
• which customers should be prioritised before opportunities become public
• which strategic goals public organisations are currently focused on

As discussed in Mercell’s article on proactive sales, suppliers that succeed are often those that identify opportunities early and engage before the procurement process formally begins (“Proactivity: The Underrated Success Factor in Public Procurement”, Mercell).

This is the difference between chasing tenders and building a long-term pipeline.

In a market where opportunities may become less visible, suppliers cannot rely solely on reacting to published procurement notices. They need to understand where demand is likely to emerge next.

 

 

The Need for Market Intelligence Is Growing

The Norwegian reforms are not only about procurement thresholds. They also emphasise sustainability, preparedness, security, innovation and stronger strategic procurement planning.

For suppliers, this means understanding the broader context behind each purchasing decision.

Public buyers are increasingly expected to align procurement with larger societal goals. That means suppliers need to understand not only what organisations are buying, but why they are buying it.

Is the investment connected to climate goals? Digital transformation? Security? Efficiency improvements? Workforce challenges?

The earlier suppliers understand these drivers, the better positioned they are to align their offering with the buyer’s priorities.

This makes market intelligence far more important than traditional tender monitoring alone.

 

 

From Tender Monitoring to Market Understanding

Published tenders will always remain an important part of public sector sales. But suppliers that rely only on tender alerts risk operating too late in the process.

The most successful suppliers increasingly combine tender monitoring with deeper market understanding.

That includes identifying:

• upcoming contract expirations
• investment plans
• political decisions
• procurement strategies
• recurring purchasing patterns
• organisations with growing demand in specific categories

The goal is no longer simply to find published tenders.

The goal is to understand the market before opportunities become formalised.

 

 

The Biggest Risk: Becoming Invisible

For suppliers, the greatest risk is not necessarily losing a tender.

The real risk is never becoming part of the conversation in the first place.

As public organisations gain more flexibility to purchase below procurement thresholds, suppliers that are already known and visible may gain a significant advantage. Not always because they offer better solutions, but because buyers are already familiar with them.

That makes invisibility a commercial risk.

Suppliers that fail to monitor early market signals, engage in relevant dialogue or understand emerging customer needs may find themselves excluded long before a procurement becomes visible to the broader market.

This is where the urgency lies.

The market does not change the day new legislation officially takes effect. It changes much earlier, when public organisations begin adjusting their procurement strategies and internal purchasing behavior.

Suppliers that wait until the market has already changed may struggle to catch up.

 

 

What Suppliers Should Focus on Now

There are several practical steps suppliers can take to strengthen their position in a changing public procurement landscape.

1. Identify Which Customers Will Be Most Affected

Some public organisations rely heavily on smaller purchases. Understanding which customers are likely to increase procurement activity below threshold values will become increasingly important.

2. Monitor Signals Earlier

Meeting minutes, budgets, investment plans and procurement strategies often reveal future purchasing needs long before a tender is published. Suppliers that track these signals consistently can identify opportunities earlier than competitors.

3. Build Relationships Before Requirements Are Finalised

Once procurement requirements are fully defined, opportunities to influence the process become limited. Early dialogue helps suppliers better understand customer priorities while also helping buyers understand what the market can realistically deliver.

4. Make Public Sector Sales More Data-Driven

Proactivity requires structure. Suppliers need systems and processes that help sales teams identify signals, prioritise accounts and act on opportunities before they become widely visible.

5. Act Earlier Than Competitors

Early insight only creates value when suppliers act on it. The ability to approach organisations at the right time, with the right message and the right understanding of their priorities, can become a major competitive advantage.

 

Conclusion

The Norwegian procurement reforms point toward a broader shift in public sector purchasing. Procurement is becoming more strategic, more flexible and, in some cases, less visible to suppliers relying solely on traditional tender monitoring.

For suppliers, this creates both opportunity and risk.

The opportunity is that procurement processes may move faster and become more dynamic. The risk is that a larger share of the market becomes harder to detect.

That is why proactive sales are becoming increasingly important in public sector business.

The key question is no longer simply which tenders have been published.

The more important question is which organisations are preparing to buy, which needs are emerging and how suppliers can position themselves before opportunities become visible to everyone else.

The suppliers that succeed in the coming years will not necessarily be the ones reacting fastest to published tenders.

They will be the ones that understand the market earliest.