Do You Remember…Why This September Could Change Procurement Forever?

The European Commission’s proposed Public Procurement Act, expected to be adopted in September 2026, is one of the most significant overhauls of European procurement rules in decades.

The legislation is designed to simplify procurement regulations, strengthen economic security, promote European competitiveness, and place greater emphasis on sustainability and value-based sourcing. While the Act is primarily aimed at public sector procurement, it should not be dismissed by private sector organisations. The legislation reflects broader procurement trends that are already influencing commercial supply chains across Europe. The most successful organisations will view these developments not as a compliance challenge, but as a preview of procurement’s future. 

Why Private Sector Procurement Leaders Should Pay Attention 

It is easy to assume that legislation focused on public procurement has limited relevance to private businesses. However, the themes embedded within the proposed legislation are rapidly becoming priorities across both public and private sectors: 

• Greater supply chain transparency 

• Increased focus on supplier resilience 

• Sustainability and ESG performance 

• Value-based sourcing rather than lowest cost 

• Enhanced due diligence on suppliers 

• Increased scrutiny of global supply chains 

These priorities are already being driven by customers, investors, regulators, and shareholders. The new Act simply reinforces the direction of travel. 

The key question for procurement leaders should not be: 

“Will this Act affect us?” 

Instead, it should be: 

“What does this tell us about where procurement is heading?” 

The End of Procurement’s “Lowest Cost Wins” Era 

Perhaps the biggest takeaway from the proposed legislation is the continued shift away from awarding contracts solely based on price. 

The new framework evaluates contracts using a “best price-quality ratio”, with quality carrying significant weighting in award decisions.  

For private sector organisations, this reflects a broader reality that has been emerging for some time…The cheapest supplier is not always the most cost-effective supplier. 

In recent years, economic strain caused by pandemics, geopolitical instability and other varying conditions have demonstrated the hidden costs associated with: 

• Supply chain disruptions 

• Quality failures 

• ESG non-compliance 

• Contract disputes 

• Poor supplier performance 

• Geopolitical instability 

Increasingly, procurement professionals must consider total value rather than purchase price alone. Businesses that continue to focus exclusively on cost reduction may find themselves exposed to risks that ultimately outweigh any short-term savings. 

Supply Chain Transparency Is Becoming Essential 

Another major theme within the proposed legislation is supply chain visibility. The Act introduces provisions allowing contracting authorities to assess ownership structures, financing arrangements, and potential risks associated with foreign influence or third-country dependencies. Whether organisations operate in the public or private sector, this highlights a growing challenge.  

Many businesses still have strong visibility of their Tier 1 suppliers but limited understanding of what sits beyond them. Questions procurement leaders should be asking include: 

• Where do our critical products ultimately originate? 

• Are we overly dependent on a particular geography? 

• Who owns our key suppliers? 

• What would happen if a supplier became unavailable tomorrow? 

• How exposed are we to geopolitical disruption? 

Rapid shifts in socioeconomic conditions have shown that resilience and visibility are no longer operational concerns. They have become boardroom priorities.  

Sustainability Is Moving From “Nice To Have” to a Commercial Requirement 

The proposed Act also continues the EU’s wider push towards integrating environmental and social objectives into procurement decision-making. Sustainability, innovation, and social impact are expected to play a greater role in procurement processes moving forward, and private sector organisations are experiencing the same shift. 

Customers increasingly expect transparency around environmental impact. Investors are scrutinising ESG performance. Regulators are demanding more robust reporting. As a result, procurement functions are becoming central to achieving corporate sustainability objectives. 

Forward-thinking procurement teams are already focusing on: 

• Carbon reduction initiatives 

• Supplier sustainability assessments 

• Ethical sourcing programmes 

• Supplier diversity targets 

• Circular economy opportunities 

• ESG performance measurement 

The direction is clear: sustainability is becoming a business performance issue, not simply a corporate responsibility initiative. 

Which Businesses Should Be Paying the Closest Attention? 

While the legislation may directly affect public procurement, several sectors should view these trends as particularly significant. 

1. Manufacturing and Industrial Businesses 

Organisations with complex global supply chains are likely to face increasing pressure to improve supply chain visibility and resilience. European sourcing strategies, supplier diversification, and risk monitoring will become increasingly important.  

2. Technology Companies 

The growing emphasis on data security, ownership transparency, and economic security could create additional scrutiny around technology suppliers, cloud platforms, software providers, and digital infrastructure partners.  

3.  Professional and Outsourced Services 

Service providers may find that quality, innovation, expertise, and measurable outcomes carry greater weight than traditional cost-based evaluations. Organisations that can clearly demonstrate value creation will be better positioned for success.  

4. Businesses Serving Large Enterprises 

Even if an organisation has no public sector exposure, many large corporate clients are adopting procurement practices that closely mirror regulatory expectations. Suppliers should expect greater due diligence requests and stronger sustainability requirements from customers in the years ahead.  

How to Prepare 

The proposed EU Public Procurement Act is more than a regulatory reform. It is a signal. A signal that procurement is becoming more strategic; that resilience matters as much as cost; that supplier transparency is becoming essential. And a signal that sustainability is increasingly linked to commercial success. 

Whether your organisation bids for public contracts or not, the trends underpinning this legislation are likely to influence procurement decision-making for years to come. The businesses that start adapting today will be the ones best positioned to succeed tomorrow. 

These adaptations could include: 

1. Mapping Your Supply Chain 

Many organisations still lack complete visibility across their supply chains. Understanding supplier dependencies, geographic exposure, and potential vulnerabilities is fast becoming a competitive necessity. 

1. Reassessing Supplier Risk 

Traditional supplier assessments focusing on cost, quality, and delivery performance are no longer enough. Resilience, sustainability, ownership transparency, and operational maturity need to become part of the conversation. 

1. Building a Stronger Sustainability Framework 

The businesses that can demonstrate meaningful ESG performance will be better placed to meet evolving customer, investor, and regulatory expectations. 

1. Moving From Cost Management to Value Management 

Procurement functions should focus on total value creation rather than simply driving cost reduction. This means considering risk, innovation, sustainability, resilience, and long-term supplier performance alongside commercial savings. 

1. Investing in Better Procurement Data 

The growing complexity of supply chains makes data-driven decision making essential. Organisations with strong procurement analytics and supplier intelligence capabilities will be far better positioned to respond to changing market conditions. 

How EBIT Intelligent Procurement Can Help 

The reality is that many procurement teams are already stretched. 

Balancing supplier management, cost pressures, sustainability targets, operational requirements, and risk management can be challenging even without regulatory shifts changing the landscape. 

This is where Procurement Managed Services can provide significant value. 

At EBIT Intelligent Procurement, we help organisations strengthen procurement capability through: 

• Strategic sourcing and category management 

• Supplier performance and governance programmes 

• Supply chain risk assessments 

• Procurement transformation initiatives 

• Spend analytics and reporting 

• Sustainable procurement strategies 

• Supplier rationalisation and optimisation 

• Procurement operating model improvement 

While the Public Procurement Act may be targeted at public sector buyers, the trends it represents are already shaping procurement strategies across the private sector. Our role is to help businesses anticipate those changes rather than react to them. 

References  

Euractiv (2026) Commission to Unify EU Procurement Rulebooks. Available at: https://www.euractiv.com/news/commission-to-unify-eu-procurement-rulebooks/ (Accessed: 4 August 2026). 

International Organization for Standardization (ISO) (2017) ISO 20400:2017 Sustainable Procurement – Guidance. Geneva: ISO. Available at: https://www.iso.org/standard/63026.html (Accessed: 4 August 2026). 

International Organization for Standardization (ISO) (2026) ISO Online Browsing Platform: ISO 20400 Sustainable Procurement Guidance. Available at: https://www.iso.org/obp/ui/en/ (Accessed: 4 August 2026). 

United Nations Global Compact (2026) Coalition for Sustainable Procurement. Available at: https://unglobalcompact.org/coalition-for-sustainable-procurement (Accessed: 4 August 2026). 

United Nations Global Compact (2026) Supply Chain and Procurement Spotlight. Available at: https://unglobalcompact.org/take-action/leadership/integrate-sustainability/roadmap/supply-chain (Accessed: 4 August 2026). 

United Nations Global Compact (2026) Sustainable Supply Chains and SMEs Programme. Available at: https://drupal.unglobalcompact.org/sustainable-supply-chains-smes (Accessed: 4 August 2026). 

World Economic Forum (2026) Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility. Geneva: World Economic Forum. Available at: https://www.weforum.org/publications/global-value-chains-outlook-2026-orchestrating-corporate-and-national-agility/ (Accessed: 4 August 2026). 

World Economic Forum and Accenture (2023) Shared Intelligence for Resilient Supply Systems. Geneva: World Economic Forum. Available at: https://www3.weforum.org/docs/WEF_Shared_Intelligence_for_Resilient_Supply_Systems_2023.pdf (Accessed: 4 August 2026).