7 Common Challenges in Public Procurement (and How to Overcome Them)

Public procurement is one of the most powerful levers governments have for delivering impact. Yet, for many public buyers, the daily reality is less about strategy and more about navigating complexity - balancing compliance, timelines, technology, and limited resources.

Procurement teams across Europe face similar struggles: fragmented systems, unclear data, risk-averse cultures, and the constant pressure to do more with less. 

The good news? 

Every one of these challenges is solvable with the right mix of strategy, structure, and support. Here’s a closer look at the most common obstacles - and how public buyers can overcome them.

1. Fragmented Processes and Manual Workflows

For many organizations, the procurement process is still managed through spreadsheets, emails, or siloed legacy systems. That fragmentation creates delays, errors, and duplicated effort. It also makes compliance tracking far harder, leaving teams vulnerable during audits.

When publication, evaluation, and reporting all happen in different places, transparency suffers - and so does efficiency.

How to Overcome It:
Centralization is key. Modern procurement platforms like Mercell bring every stage of the process into one environment - from tender creation to evaluation and contract management. 

This reduces administrative burden, strengthens auditability, and ensures the right people have access to the same data. The result is a more streamlined process, fewer bottlenecks, and better governance.

2. Limited Supplier Engagement

A diverse and competitive supplier base is essential for healthy procurement - but too often, public tenders attract the same small pool of bidders. Complex documentation, poor visibility of opportunities, or unclear qualification criteria can discourage new or smaller suppliers from participating.

That limits innovation, competition, and ultimately, value for money.

How to Overcome It:
Simplify the entry points for suppliers. Use clear, accessible tender notices, and consider breaking large contracts into smaller “lots” to widen participation. 

Communicate upcoming tenders early so suppliers can prepare, and use platforms like Mercell to reach a broader network of pre-qualified vendors.

A transparent, well-communicated process builds trust - and a larger, more dynamic supplier community.

3. Compliance and Legal Risk

Public procurement laws exist to ensure fairness and transparency - but their complexity can create its own set of risks. Missing documentation, unclear scoring criteria, or procedural missteps can lead to costly delays, challenges, or even contract cancellations.

For overstretched procurement teams, keeping up with shifting national and EU regulations is a constant source of stress.

How to Overcome It:
Automate compliance wherever possible. Modern systems guide buyers through each procedural step, flagging missing information or inconsistencies before publication. 

Audit trails and standardized documentation reduce legal exposure, while built-in reminders keep teams aligned with key deadlines and regulations.

Technology can’t remove accountability - but it can make compliance far simpler and more reliable.

4. Lack of Data Visibility and Insight

Procurement generates vast amounts of data - but without the right tools, it’s just noise. Many organizations still rely on manual reporting, making it nearly impossible to track supplier performance, analyze spend, or identify opportunities for efficiency.

Without visibility, decision-making becomes reactive rather than strategic.

How to Overcome It:
Data analytics transforms procurement from a transactional function into a strategic one. Procurement platforms provide dashboards that visualize performance metrics, spend categories, and supplier activity in real time. Buyers can spot trends, monitor sustainability targets, and make evidence-based decisions.

With the right insights, procurement stops being about chasing paperwork - and starts driving measurable value.

5. Resistance to Change and Digital Adoption

Introducing new procurement software or processes can meet resistance - especially in organizations where leaders or staff have used the same tools for years. Concerns about disruption, training time, or unfamiliar workflows can slow down even well-planned transformations.

But resistance is rarely about technology itself - it’s about confidence and clarity.

How to Overcome It:
Start small and build trust. Pilot new systems within a single department, gather feedback, and share success stories internally. Involve senior leaders early so they feel ownership of the change. Offer structured training and ongoing support to help teams adapt gradually.

Mercell’s experience across Europe shows that adoption succeeds when people see tangible results - faster approvals, fewer errors, and easier reporting.

6. Time Pressure and Resource Constraints

Procurement teams often juggle multiple projects with limited staff and fixed deadlines. Routine administrative work - checking documents, coordinating communication, tracking signatures - can consume hours that should be spent on strategy and supplier engagement.

The result is reactive procurement, where the focus shifts from value creation to simple task completion.

How to Overcome It:
Automate repetitive tasks and standardize what can be standardized. Tools like Mercell reduce manual workload through digital templates, document libraries, and automated reminders. Collaboration features let teams work together in real time - no version chaos, no email overload.

By freeing up time, teams can refocus on what truly matters: evaluating suppliers, monitoring outcomes, and optimizing procurement for long-term impact.

7. Balancing Transparency with Efficiency

Procurement professionals often walk a tightrope between openness and speed. The need to maintain fair, auditable processes can sometimes feel at odds with the push for agility and faster delivery.

Too much bureaucracy slows results; too little invites risk.

How to Overcome It:
Digital procurement systems make it possible to have both. With automated publication, standardized scoring frameworks, and traceable communication logs, buyers can maintain transparency while accelerating evaluation and award cycles.

Mercell’s unified platform, for example, helps public bodies publish tenders faster - without compromising on accountability or audit readiness.

Turning Challenges into Momentum

The complexity of public procurement isn’t going away - but how organizations handle that complexity is changing fast. The move from manual to digital, reactive to strategic, and closed to transparent is reshaping what “good procurement” looks like.

Each challenge - fragmentation, risk, resistance, or limited data - can become a catalyst for improvement. By adopting modern tools, encouraging collaboration, and focusing on outcomes rather than processes, public buyers can turn procurement into a genuine driver of value, trust, and innovation.