Procurement processes require focus on competence

There are many areas where competence is important, but few are as vulnerable to risk as procurement. When employees or suppliers have connections that are not visible or properly managed, the consequences can be serious. 

For organizations with large or recurring purchases, this is an area that deserves much more attention than it usually receives.

Why is procurement so vulnerable?

Procurement processes often involve large sums, long-term agreements, and relationships with market players. This makes them particularly susceptible to conflicts of interest. Common examples include:

• An employee sits on the procurement committee and has a close relative in one of the supplier companies.

• A middle manager holds small shares in a company participating in a competition, without having considered the implications.

These situations occur more often than one might think, and they are rarely caught without good routines and systems.

What does the law require?

In the public sector, the Public Procurement Act and the Public Administration Act provide clear requirements for competence. But private enterprises must also adhere to their own guidelines, transparency expectations, and the risk of breaching loyalty obligations.

The requirements can be summarized in three principles:

1. Enough overview of possible conflicts of interest

2. Systematic assessment of competence at all relevant levels

3. Documentation and traceability

If you cannot show that a competence assessment has been made, it is considered as if it has not been done.

How can this be solved in practice?

A digital competence system allows for direct linking of competence assessments to procurement processes. This can include:

• Automatic retrieval of information from public registers

• Self-declarations for everyone involved in a competition

• Alerts for connections to suppliers, close associates, or previous engagements

• Secure documentation and traceability for auditing and control

System support frees up time, reduces errors, and ensures that competence is not an afterthought, but an integrated part of the procurement process.

It's not about suspicion, but about trust

No organization wants to experience that a procurement matter is called into question because competence was not assessed or documented. Having a systematic approach in this area is not a burden, but a protection for both the organization and the employees.

At Arx Compliance, we help organizations gain oversight, structure, and control.

Is your procurement process robust enough to handle competence?

We would be happy to assist you with a non-binding review.