3 min read

Digitization of procurement in construction, installation and industry: trends I see in practice

 

In recent years, there has been a lot of discussion about digitalization in the construction, installation, and industrial sectors. This often focuses on BIM, project management software, or planning tools. But as an operations manager at BarTrack, I see an equally significant shift in another area: procurement.

For a long time, procurement was a process that was simply “part of the job.” Something that took up a lot of time, but wasn’t necessarily seen as strategic. That perception is changing rapidly. Not only because organizations want to work more efficiently, but also because complexity is increasing: more suppliers, limited availability, stricter compliance requirements, margin pressure, and higher expectations from project teams and customers.

What I see in the market is that the digitalization of procurement is no longer limited to “ordering online.” It is increasingly about control, standardization, data quality, and collaboration across the supply chain. Below, I share the key trends I currently see in construction, installation, and industry.

1. Procurement shifts from ad hoc to process-driven

In many organizations, procurement historically grew out of day-to-day operations: people on the shop floor ordered what they needed, when they needed it. This works as long as volumes are limited and pressure is low. But as projects become larger and organizations grow, the need arises for a clear, structured process: who is allowed to order what, from whom, with which price agreements and under what conditions?

What I increasingly see is that organizations want to professionalize procurement without losing practicality for the execution teams. This means clear agreements, combined with a purchasing process that is fast and aligned with everyday reality. Digitalization supports this by adding structure without creating extra manual work.

2. Less frustration from “searching” and more focus on ordering

An often underestimated issue in procurement is the amount of time lost on searching: looking up products, comparing suppliers, finding the correct specifications, and checking prices. In practice, this often takes more time than placing the order itself.

The trend I see is that organizations increasingly want a single central place where buyers can find the right products and suppliers, including agreed contract terms. Not to “control” everything, but to work faster and prevent errors.

3. Data quality becomes crucial (and is finally being taken seriously)

Digitalization only works well when the foundation is solid. In procurement, that means accurate products, units, packaging units, prices, alternatives, lead times, and above all: consistency.

In construction and installation, this is especially challenging because product data across the supply chain is not always uniform. Still, I see more and more companies investing in better product data and standardization — not as an IT project, but as an operational necessity. Without reliable data, manual corrections remain necessary and the benefits of automation are lost.

4. ERP integration is no longer a “nice to have”

Where digitalization once often started with standalone tools, integration with the ERP system is now a hard requirement. Not only to keep administration in order, but especially to avoid duplicate work.

Organizations want orders to flow automatically into their financial and logistics processes, with clear budget visibility, accurate inventory records, and seamless project administration. In practice, this is often the difference between “having a procurement platform” and “having a working process.”

5. The supply chain is moving along: wholesalers are digitalizing at a rapid pace

What I also see is that wholesalers and suppliers are increasingly offering more options for digital collaboration. Think of order statuses, delivery note information, product updates, and digital confirmations.

This is important, because a digital ordering process is only truly effective when there is less manual work required on both sides. The clear trend is toward supply chain collaboration: faster communication, less miscommunication, and greater transparency.

6. Procurement becomes a source of management information

Procurement data is valuable. It shows where money is being spent, which projects are running off track, where waste occurs, which suppliers perform best, and where risks lie.

More and more organizations want not only to “order,” but also to steer and manage. This means procurement platforms are increasingly used to generate reports and insights: costs per project, price deviations, delivery reliability, and even CO₂ and sustainability data when relevant.

7. Automation expands: from ordering to receiving and processing

Digitalization does not stop at placing the order. The next step is automating the follow-up: order status, what has been delivered, whether the order is correct, and whether it has been processed administratively.

In practice, these are exactly the moments where a lot of time is lost — calling suppliers, searching for confirmations, manually updating inventory, or checking discrepancies afterward. I see organizations increasingly wanting these steps to flow automatically as part of the process.

8. The role of operations is changing: more control, fewer fire drills

This may be the most interesting development of all. Through digitalization, the role of operations is shifting from reactive to orchestrating.

Where the focus used to be mainly on solving problems (incorrect deliveries, budgets going off track, hours lost due to corrections), there is now room to improve processes and look ahead. This makes operations not only more efficient, but also more strategic.

 

Conclusion: digitalizing procurement is not an IT story, but an operational accelerator

The trend is clear: companies in construction, installation, and industry are looking for control, speed, and reliability. Digitalizing procurement is not a goal in itself, but a means to make projects more predictable and reduce failure costs.

What I see most clearly is that the market is maturing. The question is no longer whether companies will digitalize, but how they do so in a way that fits everyday practice. Success often lies not in big words, but in smartly designed processes that make daily work easier.

And that is where the essence lies for me: digitalization should not create more work, but less. It should help organizations operate with structure, transparency, and speed — so teams can focus on what really matters: doing the work, delivering projects, and serving customers.

 

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