Lost in Public Space: Exploring the Unknown with the Norwegian Public Sector Segment

by Henrik Nyberg

Procurement is a critical function for businesses in all sectors. It involves researching, planning, budgeting, and executing purchases to meet the organization’s needs and goals. Though the private and public sectors may appear to be distinct entities, a closer look reveals many shared characteristics. After experiencing both sides of this coin for an extended period, it becomes apparent there’s more common ground than initially meets the eye! But, the competitive landscape for procurement software is very different. In this blog post, we’ll explore the similarities and differences in procurement software between the public and private sectors and its impact.

The Vendor Market

One of the most significant differences between the public and private sector procurement is the vendor market. In Norway, for example, consolidation has resulted in almost a monopoly situation. Vendors have been discontinued or absorbed into a single brand, creating barriers for newcomers. These barriers can deter competition and drive prices down in competitive tenders. However, the low prices can lead to a lack of options and price volatility within the market.

The procurement software offered to public companies has been able to live in parallel with the private market, and its evolutions have become more focused on compliance with public procurement regulations. This consolidation trend is also true in many countries around the world, leading to less competition and fewer choices for customers.

Regulation and Compliance

Adherence to regulations is critical, but it should never come at the expense of innovation. Compliance with regulations in procurement is what owning a bike is to triathlon – it enables you to participate but it does not make you good at it. Entering the market has revealed an essential need to not only acquire goods and services without threatening regulations, but also a desire for something more. 

The Public Sector is looking for tools that help them become better – by understanding exactly how much value their purchases offer, collaborating with suppliers strategically, ensuring transparency and compliance of laws such as The Transparency Act- all while reducing their carbon footprint through automation so they can focus on those important aspects. This ambition to improve processes is perhaps the biggest similarity between private and public organizations. 

Norway and Public Procurement Adoption

One interesting observation to note–several private companies in Norway have adopted the public procurement methodology, not out of necessity, but because it makes sense. As a salesperson, the complexity of public procurement may seem daunting. But don’t let paperwork and onboarding keep you from taking advantage of this potentially rewarding opportunity – it’s worth doing your research to ensure success in navigating unfamiliar territory. The process provides structure, gives more concrete responses earlier, and leads to more rational decisions. Striking the balance between structure, compliance, and success can be a difficult task – and Ivalua is here to provide the perfect balance between those two objectives!  

While the private and public sectors may appear vastly different on the surface, there are many shared characteristics when it comes to procurement practices. Both sectors aim to acquire goods and services for the best price, both rely on clear communication and collaboration between departments, and both are influenced by technology and the competitive market landscape. Understanding the similarities and differences between the private and public sector procurement practices can lead to improved procurement strategies and better overall results for organizations.

Where to Start

Revolutionize your procurement processes and maximize the value of your financial resources with Ivalua, the proven and reliable partner of the Norwegian Public Sector. With our innovative solutions, you can promote compliant and transparent operations to achieve your goals. Get ready for a game-changing approach to Public Sector spend and procurement management!

Norway Public Sector Solution Details