Public sector procurement is a complex, high-stakes function. Government agencies, universities, and research institutions in Australia and New Zealand must balance supplier oversight, cost efficiency, and regulatory compliance, all while managing limited budgets and growing stakeholder expectations.
Yet, many institutions still rely on outdated systems, fragmented data, and manual processes. This leads to costly inefficiencies, compliance risks, and missed savings opportunities.
The consequences of poor procurement management are significant:
- Wasted taxpayer dollars: The National Audit Office (ANAO) reports that inefficient procurement processes cost government institutions millions each year.
- Regulatory penalties: The New Zealand Office of the Auditor-General (OAG) has repeatedly flagged procurement compliance issues, warning of legal and financial risks.
- Supplier disputes & delivery failures: A recent Australian Productivity Commission report found that 40% of government contracts face supplier performance issues due to poor oversight and fragmented management.
Despite these risks, many institutions continue using outdated ERP systems that lack the automation, analytics, and risk controls required for modern procurement management.
This article explores:
- The biggest procurement challenges faced by government and education institutions in Australia and New Zealand.
- The ROI of investing in a dedicated supplier and contract management solution.
- How OneAdvanced helps institutions achieve greater efficiency, compliance, and cost savings.
Key procurement challenges in the public sector
Government and education institutions face unique procurement challenges, ranging from supplier fragmentation and contract mismanagement to compliance complexities and cost overruns.
1. Lack of visibility and control over supplier relationships
Managing hundreds or even thousands of suppliers across different departments is a logistical challenge. Without a centralised system, institutions struggle to track:
- Supplier performance (e.g. delivery timelines, fulfilment accuracy)
- Compliance with regulatory and ethical procurement policies
- Sustainability and ESG commitments
In New Zealand, the Government Procurement Rules (NZGPR) require agencies to consider broader outcomes such as environmental sustainability and ethical sourcing.
However, without an integrated system, tracking supplier ESG compliance is nearly impossible.
2. Manual and inefficient contract management
A 2022 study by the Australian Department of Finance found that mismanaged contracts contribute to 5–10% in unnecessary procurement costs per year. But, what causes contract mismanagement?
Many government and education institutions still rely on spreadsheets, shared drives, and email chains to manage supplier contracts. This outdated approach leads to:
- Missed contract renewals, resulting in unexpected service disruptions.
- Increased legal and financial risk due to non-compliance.
- Higher costs from overlooked supplier overcharges and duplicate contracts
3. Compliance and regulatory risks
Government and education institutions must adhere to strict procurement rules, such as:
- Australia’s Commonwealth procurement rules (CPRs). This governs all federal procurement, requiring agencies to demonstrate value-for-money and ethical supplier selection.
- NSW, VIC, and QLD state procurement frameworks. Each state enforces its own compliance measures, adding complexity for multi-state institutions.
- New Zealand government procurement rules (NZGPR). This requires government agencies to meet social, environmental, and economic criteria when selecting suppliers.
Non-compliance with these frameworks can lead to financial penalties, reputational damage, and legal action.
For example, the Australian National Audit Office (ANAO) has repeatedly found procurement non-compliance to be one of the most common risks for public sector organisations.
Why ERP systems aren’t enough for supplier and contract management
Many institutions believe their ERP system can handle procurement and contract management. However, ERP platforms were never designed for modern supplier management needs.
Key ERP limitations:
- No real-time supplier risk tracking.
- No automated contract renewal alerts or compliance flagging.
- Limited analytics for cost savings and supplier performance.
ERP systems are useful for financial tracking, but they lack the capabilities required for proactive supplier relationship management and strategic procurement oversight.
How OneAdvanced solves these procurement challenges
OneAdvanced’s supplier and contract management solution is designed to support a wide range of sectors — including government and education institutions.
1. End-to-end supplier lifecycle management
- Automated supplier onboarding and risk assessments.
- Real-time tracking of supplier performance & ESG compliance.
- Centralised contract repository with automated renewal alerts.
2. Compliance and risk mitigation
- Ensures all contracts align with procurement regulations.
- Reduces legal risks by preventing non-compliant spending.
- Audit-ready reporting for transparency and governance.
3. Intelligent procurement insights and cost savings
- AI-driven analytics to identify cost-saving opportunities.
- Vendor consolidation tools to eliminate unnecessary spend.
- Automated spending reports for financial oversight.
Investing in a dedicated procurement solution
Investing in supplier and contract management technology delivers:
- 10–15% annual cost reductions.
- 5% savings on procurement costs via improved contract oversight.
- 30% higher contract compliance rates in organisations with automated procurement systems.
The broader ROI benefits include:
- Cost savings: Reduce maverick spending, improve vendor negotiations, and automate compliance.
- Operational efficiency: Procurement teams spend less time on manual processes and more time on strategic decision-making.
- Compliance risk reduction: Prevent missed renewals, regulatory breaches, and legal penalties.
Modernising procurement for long-term success
Government and education institutions simply can’t afford to rely on outdated procurement systems. By adopting OneAdvanced’s dedicated contract management solution, you can:
- Gain full visibility into supplier relationships.
- Improve procurement efficiency and compliance.
- Achieve substantial cost savings.
- Ensure long-term financial sustainability.
Ready to transform your procurement process?
Contact OneAdvanced today to learn how we can help your organisation achieve smarter, more compliant, and cost-efficient procurement.