The Complete Guide to the Procurement Process

Whether it's a local government buying recycling bins or a national agency commissioning a billion-euro infrastructure project, every public purchase follows a structured path: the procurement process.

At its core, the procurement process is a step-by-step framework that guides how public buyers plan, publish, evaluate, and award contracts. It ensures that public money is spent transparently, competitively, and in line with policy goals - like value for money, sustainability, and fair access.

For suppliers, understanding this process is more than helpful - it’s a strategic advantage. When you know what happens behind the scenes, you can:

• Align your proposals with buyer priorities

• Anticipate what’s coming next in the bidding timeline

• Avoid disqualification traps and low scores

• Build long-term relationships with recurring buyers

In this guide, we’ll walk through each stage of the procurement process - from first identifying a need, to final contract delivery - and show how suppliers can position themselves to succeed at every step.

The 7 Stages of the Procurement Process

Public procurement is governed by structure - for good reason. It ensures transparency, fairness, and the best use of public funds. Most tenders follow a predictable journey, regardless of sector or country. Below are the seven stages buyers typically follow - and what they mean for you as a supplier.

1. Needs Identification

Every procurement process begins with a problem to solve or a service to deliver. This could be replacing outdated IT systems, constructing new facilities, outsourcing cleaning services, or anything in between. Internal departments raise the need, which is then evaluated and approved at the planning level.

Why it matters to suppliers:
This early stage often happens months before a tender is published. Some buyers issue Prior Information Notices (PINs) or conduct market engagement events. If you’re active during this phase - by attending briefings or offering insight - you can influence the scope and signal your expertise before any competitors even see the opportunity.

2. Market Research

Once the need is identified, buyers assess what the market can offer. They research supplier capabilities, pricing benchmarks, potential risks, and levels of innovation. Some conduct formal Requests for Information (RFIs) or supplier questionnaires to better understand the landscape.

Why it matters to suppliers:
Engaging in soft market testing can boost your visibility and give you valuable signals about upcoming tenders. This is also when buyers decide whether to use lots, frameworks, or dynamic purchasing systems - so you can prepare accordingly. Proactive suppliers can help shape how the opportunity is eventually tendered.

3. Procurement Planning

Now the buyer decides how the actual tender will be structured. They choose the procedure (e.g., open, restricted, competitive dialogue), define qualification and award criteria, and finalize documentation. Buyers also build internal timelines and select evaluation panels.

Why it matters to suppliers:
Understanding common procedures helps you prepare documentation early. For example, a restricted procedure requires pre-qualification responses (SQ or ESPD), while an open procedure demands a full bid from the start. At this stage, buyers also decide how much weight to give pricing, social value, quality, and innovation - so previous insight pays off.

4. Tender Publication

Once the plan is finalized, the tender is published on relevant procurement platforms. This includes notices, instructions, specifications, templates, legal terms, and scoring criteria. Buyers also set deadlines for questions and submission. Clarification periods may follow.

Why it matters to suppliers:
This is your moment to act. Read every document thoroughly - buyers often disqualify bids for small compliance errors. Use the question period strategically to clarify ambiguities. Assign clear responsibilities across your team and build a timeline that ensures submission ahead of deadline. Early reading gives you time to tailor your proposal and avoid rushed errors.

5. Supplier Selection and Evaluation

After submission, buyers evaluate bids. They check compliance with mandatory requirements, then score based on weighted award criteria - typically a mix of price, technical quality, and social value. Some contracts also involve interviews, site visits, or presentations.

Why it matters to suppliers:
Your bid must speak directly to the buyer’s criteria - not just your general strengths. This is where structured, persuasive writing and relevant case studies shine. Remember, buyers may be scoring dozens of responses - clarity and conciseness can improve your score. Use the buyer’s language, and make sure you explain not just what you do, but how you’ll do it.

6. Contract Award and Management

Once a winner is chosen, the buyer publishes a contract award notice. The supplier signs the agreement, and the contract enters the delivery phase. During this time, suppliers are expected to provide services or goods exactly as specified, while maintaining compliance and communication.

Why it matters to suppliers:
This is where performance truly matters. Buyers often have ongoing KPIs and review checkpoints. Smooth onboarding, clear documentation, and proactive issue resolution will build trust. Strong delivery performance increases your chance of receiving positive references, renewal offers, or consideration in future mini-competitions or direct awards.

7. Delivery, Review, and Renewal

At contract end - or at defined milestones - the buyer reviews performance. This includes financial outcomes, service levels, compliance, and user satisfaction. The results can lead to contract extensions, re-tendering, or a shift in procurement strategy.

Why it matters to suppliers:
Consistent, documented performance builds your track record. In many sectors, suppliers are asked to provide evidence of similar past delivery when bidding for future work. If you exceed expectations, buyers may invite you to future frameworks or recommend you to peers. Treat every contract like it’s the gateway to the next.

How Buyers Apply These Stages in Real Life

While the seven stages of procurement provide a structured framework, how they’re applied varies depending on the sector, contract size, urgency, and even the maturity of the buying organization. In real life, public buyers often make judgment calls within the process - balancing regulation with practicality.

Let’s look at a few real-world examples to see how these stages play out on the ground:

Example 1: Local Government – School Catering Services

A city council identifies that contracts for school meals across 20 schools are expiring in 6 months (Stage 1). They assess local suppliers and healthy eating trends (Stage 2), then decide to run a restricted procedure split into geographic lots (Stage 3).

They publish the tender on their national portal with specific nutrition and sustainability criteria (Stage 4). After evaluating written bids and conducting kitchen inspections (Stage 5), they award to a mix of small local businesses and one national provider (Stage 6). Over the next 3 years, performance is monitored against delivery reports, and contracts may be renewed based on quality feedback (Stage 7).

Example 2: Central Government – National IT Infrastructure

A central digital agency identifies the need to modernize national IT systems (Stage 1). They research cloud service providers, EU cybersecurity standards, and past projects in other countries (Stage 2). Due to complexity, they plan a competitive procedure with negotiation (Stage 3).

The tender is published through TED and national channels (Stage 4). Shortlisted suppliers submit proposals and attend strategy workshops (Stage 5). A supplier offering flexible architecture and strong data protection is selected (Stage 6). The project is delivered in phases, with formal audits and a 5-year renewal clause built in (Stage 7).

Example 3: Healthcare Provider – Temporary Staffing

A hospital identifies staff shortages and plans to outsource temp nursing coverage (Stage 1). They explore agencies, market rates, and response times (Stage 2), and opt to join an existing Dynamic Purchasing System (Stage 3).

Individual roles are then published as mini-competitions within the DPS (Stage 4), where pre-approved suppliers submit quotes and availability (Stage 5). Contracts are awarded on a case-by-case basis (Stage 6), with performance tracked in terms of punctuality, qualifications, and patient satisfaction (Stage 7).

These real-life scenarios show how buyers tailor the process to suit their context - and why it’s essential for suppliers to understand both the structure and flexibility of procurement.

What This Means for Suppliers

Understanding the procurement process isn’t just for buyers - it’s a competitive advantage for suppliers. By knowing how each stage works and where decisions are made, you can position your business more strategically, avoid common pitfalls, and submit stronger, higher-scoring bids.

Here’s what it means for you at every step:

Get In Early

The procurement process begins long before a tender goes live. By engaging during the needs identification or market research stage - through events, RFIs, or networking - you can help shape buyer understanding and raise awareness of your solution. Early visibility builds trust and sets you apart before the competition even enters the picture.

Monitor Procurement Plans and PINs

Public buyers often publish forward plans and Prior Information Notices (PINs) months in advance. These offer insight into upcoming opportunities, allowing you to prepare in advance - whether that means updating documentation, aligning certifications, or even partnering with other firms.

Tailor to Evaluation Criteria

Too many suppliers focus on selling their product or service - instead of answering the specific question being asked. If a buyer allocates 60% of their score to social value and only 40% to cost, your response needs to reflect that weighting. Study evaluation frameworks closely and mirror them in your structure and tone.

Don’t Just Bid - Build Relationships

Procurement isn’t transactional - it’s relational. Many public buyers run regular tenders, frameworks, and mini-competitions. By delivering well, communicating clearly, and responding proactively to feedback, you become a trusted partner - someone they want to work with again. That can mean repeat work, better references, or invitations to exclusive opportunities.

Document Everything

Buyers expect clean, compliant submissions - and that means having your policies, insurances, financials, and case studies ready. Organizing these in advance not only saves time, but reduces stress and helps you respond quickly when a tender drops with a tight deadline.

Evaluate and Learn

Even if you lose a bid, the process still offers value. Always request a debrief. Understand how your bid was scored, where you lost points, and how you compared to the winner. Over time, this builds your internal capability and improves future performance.

When you understand how public procurement really works, you stop chasing tenders - and start competing strategically.

How Mercell Supports Every Stage of the Process

Public procurement can be time-consuming and complex - but it doesn’t have to be. Mercell is designed to support suppliers at every stage of the procurement journey, helping you find more opportunities, respond more effectively, and win more consistently.

Here’s how Mercell maps to each phase of the procurement process:

Stage 1–2: Needs Identification & Market Research

What Mercell does:

• Alerts you to Prior Information Notices (PINs), early signals, and pre-market consultations

• Tracks which buyers are preparing to tender in your sector

• Maps buyer activity across regions, helping you forecast demand

Your advantage:
Stay ahead of competitors by knowing what’s coming before it goes to tender. Shape demand, prepare early, and increase visibility.

Stage 3: Procurement Planning

What Mercell does:

• Monitors framework and DPS openings with long lead times

• Helps you track contracts that are expiring or due to be re-tendered

• Offers insights into procedures, contract value ranges, and common criteria

Your advantage:
Align your internal planning with buyers’ cycles. Build a pipeline of realistic targets with time to prepare your documentation and strategy.

Stage 4: Tender Publication

What Mercell does:

• Delivers real-time tender alerts tailored to your keywords, CPV codes, and geographies

• Offers full access to documents from national portals and TED - all in one place

• Integrates clarification periods and deadlines into a central dashboard

Your advantage:
Never miss a relevant tender. Get notified immediately and avoid delays caused by fragmented portals or last-minute searches.

Stage 5: Evaluation and Selection

What Mercell does:

• Includes bid management tools (Mercell Bidding) to manage responses and assign tasks

• Provides document templates and compliance checklists

• Stores case studies, certifications, and references in a reusable bid library

Your advantage:
Respond with speed, consistency, and confidence - especially when evaluation scoring is tight. Collaborate with your team seamlessly.

Stage 6–7: Award, Delivery & Review

What Mercell does:

• Keeps records of contract awards, durations, and buyer performance

• Alerts you to upcoming mini-competitions and renewal dates

• Supports framework compliance and internal reporting

Your advantage:
Strengthen post-award delivery, track renewals, and be ready to re-compete - or scale your footprint across other buyers using the same framework.

Take Control of the Procurement Process

Public procurement isn’t just a set of rules - it’s a roadmap. And when you understand each stage of the journey, from pre-market signals to contract renewal, you move from reacting to tenders to strategically planning your next win.

The process may seem complex, but at its heart, it’s about connection: buyers with needs, suppliers with solutions, and the systems that bring them together transparently and efficiently. When you know what buyers are doing at every step - and how to respond - you gain a real advantage.

And with Mercell, that advantage becomes a habit. From discovery to delivery, we help you navigate the process with less stress and more success.