What is procurement profiling?

Procurement Profiling is an analytical tool to determine the characteristics and performance of an agency's procurement activities. A Procurement Profile is a document that summarises that analysis. It usually includes information on:

  • what is purchased;
  • how much is spent on various types of purchases;
  • how the products are purchased;
  • who the products are purchased from; and
  • where agency suppliers are located.

Why develop a procurement profile?

A procurement profile provides useful information to assist an agency manage its purchasing activities. The profile can be used to identify areas of procurement activity where improvements can be made, and provides a benchmark against which the impact of any changes can be measured. It assists an agency monitor its procurement activity so that it can take advantage of new technology and opportunities to improve.

How do I develop a procurement profile?

To develop a procurement expenditure profile, a good understanding of the agency's chart of accounts, activities and programs, finance system, and procurement processes is required.

The publication Procurement Profiling - A Guide for Agencies provides guidance on the data required to construct a basic procurement profile as well as the basic steps for developing a procurement profile.