All the countries that responded to the 2024 survey on the OECD Recommendation on Public Procurement recognise the need to foster efficiency in their public procurement systems. They fulfil this by using various tools, including framework agreements, joint procurements, e-catalogues, and centralised purchasing, while improving procurement practices by reducing duplication and achieving greater value for money.
Of the tools that can contribute to increasing efficiency, centralising purchasing offers numerous benefits, including better value for money through economies of scale, lower transaction costs, faster implementation of policy objectives, and improved capacity and expertise. A large majority of OECD countries (32 out of 35, 91%) have established national or federal central purchasing bodies (CPBs) for general commodities. Given the relevance of some specific procurement categories for the delivery of public services, sector-specific CPBs are also emerging, with 17 out of 35 OECD countries (49%) using them for health sector procurement and 12 out of 35 (34%) for ICT-related procurement (Figure 11.8).
Efficiency in public procurement can also be enhanced by implementing processes such as planning, risk management, and inventory control. Digital technologies – like data analytics, AI, machine learning, robotic process automation (RPA), cloud storage for procurement data, and mobile technologies – can further drive efficiency by streamlining workflows, automating repetitive tasks, increasing productivity, and lowering costs. These technologies also improve the exchange of information between suppliers and contracting authorities, and when combined with well-established processes, can lead to even greater efficiency gains. In 2024, OECD countries mainly used such technologies to promote transparency, control, and oversight (23 out of 35 countries for both categories, 66%). A further 60% of OECD countries (21 out of 35) reported using innovative technologies to improve administrative efficiency. However, these technologies are still underused in inventory management and logistics, with only 14% of OECD countries (5 out of 35) applying them in this context (Figure 11.9).
Measuring the efficiency of public procurement processes requires developing the necessary evidence and indicators. Indicators can include monetary and time savings, market participation levels, and the duration of procurement processes (including vetting). These are increasingly recognised as a key element in public procurement performance measurement frameworks, alongside compliance and whether procurement is contributing to strategic government objectives. Overall, in 2024, 24 out of 35 OECD countries (69%) reported using efficiency indicators (Figure 11.10).
