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As technology continues to evolve rapidly, government agencies conducting procurements seek ways to incorporate data analytics into their operations. How to do so effectively is a major question. State procurement offices offer examples of data usage and presentation that can be applied across all levels of government. Government agencies can leverage these examples to bolster market research efforts, communicate procurement data effectively, and analyze data points to inform decision-making.

Trend and Market Analysis

              Data analytics have bolstered market research[1] efforts in state procurement, and they can help government purchasers in any local office. Advanced market research and external data sources allow procurement personnel to review and compare against industry standards before adjusting strategies. Through cost analysis, government agencies can track purchases ─ including prices, quantities, and sources ─ to identify opportunities for cost reductions.[2] Market analysis and research integrate data from eProcurement systems, market research firms, and supplier forums. For example, most states conduct comprehensive market analyses to inform sourcing methods at the beginning of solicitations for IT projects.[3]Procurement offices incorporate an expansive amount of data analytics into market research processes, a trend that does not appear to be slowing down.

Analytics might not be as useful if they are not presented in a quickly digestible manner. Interactive dashboards help procurement and government leaders visualize key performance indicators quickly to recognize strengths and spot potential issues.[4] For example, the Missouri Division of Purchasing, which sought to improve procurement turnarounds, developed a data visualization system using Tableau and Smartsheet. The simple pieces of software monitor the statuses of procurements and provide expedient feedback. With additional data available, the office cut turnaround times by roughly 65 percent.[5] Missouri is just one state that has carefully considered not just how to use analytics, but how to present them. 

Improving Decision Making 

Procurement processes involve plenty of decisions, like many important functions of government, which analytics can support. Through data analytics, local government professionals can:

• Analyze time trends.
• Track spending.
• Identify compliance and efficiency gaps.
• Spot market opportunities.
• Ensure alignment with agency goals.
• Compare performance across agencies and locations. [6]

State procurement offices use analytics to inform policy decisions and monitor the impact of those reforms over time, pinpointing areas for refinement, additions, or deletions. In addition to developing procurement policies, states may assess and refine existing regulations.[7] Making such data readily available to the public can increase trust in government. The California Procurement Division, for instance, designed dashboards that display contract and procurement information. The effort stems from an executive order meant to promote transparency.[8]The possibilities of using data to improve decision-making and public trust in those decisions are plentiful. 

Optimizing Procurement Processes

Data analytics allow government offices that conduct procurement to monitor and characterize activities like spending and sourcing strategies.[9] Both internal data sources, such as financial reports and evaluations of procurement systems, and external ones ─ market intelligence, regulatory data, and supplier databases ─ can be key decision-making tools. Some available metrics of supplier performance include:

• Price.
• Delivery times.
• Quality.
• Risk factors.
• Reliability.
• Compliance.

For example, the North Carolina Division of Purchase and Contract developed the NC eProcurement, a web-based purchasing system that provides various operational improvements, including offering strategic procurement information.[10] As states expand the use of technologies like eProcurement systems, data analytics can become even more ingrained as part of procurement processes and evaluation. 

Analytics can also remove potential risk in procurement processes. Risks that procurement offices may face include: 

• Fraud.
• Regulation compliance.
• Supplier financial health.
• Insufficient environmental, social, or governance performance. 

In private sector procurement, consumer packaged goods companies use it to predict customer demand for specific products and reach suppliers that they might not have heard about otherwise.[11]The public sector may consider how to use analytics not just to improve processes but to mitigate possible pitfalls. 

              Examples abound of state procurement offices using data analytics to optimize processes, make informed decisions, and spot trends. These extend to policy decisions and reforms, especially when presented in easily digestible forms. While improving processes, procurement professionals can also mitigate risks. Data analytics are more than just a piece of the ever-enlarging influence of technology in procurement work. If deployed thoughtfully, they can be navigators through the rapidly changing procurement landscape.  For more information on how to advance data usage, local government professionals may wish to reach out to state procurement offices and the National Association of State Procurement Officials (NASPO).

[1] “Procurement Toolbox- Market Research,” National Association of State Procurement Officials, accessed August 14, 2025, https://www.naspo.org/research-and-innovation/content-library/market-research/.

[2] Ideson, Philip, “Procurement Analytics: Key Methods, Tools & Use Cases for Data Savvy Procurement Professionals,” Art of Procurement, October 24, 2025, https://artofprocurement.com/blog/learn-procurement-analytics.   

[3] “Acquisitions 2019 State Procurement: 5 Trends That Are Reshaping How Governments Buy,” Georgia Department of Administrative Services, accessed June 25, 2025, https://www.doas.ga.gov/sites/default/files/assets/State%20Purchasing/NEADocumentLibrary/GOV19%20SR%20Procurement.pdf.

[4] Cocciolo, Serena, Sushmita Samaddar, and Mihaly Fazekas, “Government Analytics Using Procurement Data,” The Government Analytics Handbook, World Bank Publications, October 27, 2023, https://openknowledge.worldbank.org/server/api/core/bitstreams/bd31ce7f-96f9-4e98-8cdd-a87488625e8e/content.

[5] Heffernan, Jack, “Missouri- Operational Improvement Through Turnaround Time Management,” National Association of State Procurement Officials, accessed June 23, 2025, https://cdn.naspo.org/RI/2024CroninCaseStudyMissouri.pdf.

[6] Stephens, Chadwick, “Does Your Data Work for You?” National Association of State Procurement Office, July 12, 2022, https://www.naspo.org/news/does-your-data-work-for-you/.

[7] “Government Analytics Using Procurement Data,” World Bank, accessed August 14, 2025, https://thedocs.worldbank.org/en/doc/5958d8e2b7f26b4f817027245b0ba2e2-0050042023/original/GAH-CHAPTER-12.pdf.

[8] “Statewide Procurement Data Dashboards,” California Department of General Services, accessed June 23, 2025, https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-Folder/Intake-and-Analysis-Unit-Dashboards. 

[9] “Procurement Toolbox- Strategic Sourcing,” National Association of State Procurement Officials, accessed August 14, 2025, https://cdn.naspo.org/RI/ProcurementToolboxIssue9_StrategicSourcing.pdf

[10] “North Carolina Electronic Vendor Portal (NC eVP),” 2024 Cronin Submission Booklet, National Association of State Procurement Officials, accessed June 20, 2025, https://cms.naspo.org/wp-content/uploads/2024/11/2024_Cronin-Booklet_Annual_Updated_Aug26.pdf.

[11] McMillan, Aaron, “How Data Analytics is Empowering Procurement Operations,” Procurement Magazine, September 24, 2024, https://procurementmag.com/articles/how-data-analytics-is-empowering-procurement-operations.