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Modernizing local government procurement to strengthen communities

How modern e-procurement empowers local governments to support small businesses and meet community goals.
Holly Barringer
05 September 2025

Local government procurement teams play an important role in community development and economic growth. By including small and local businesses in their purchasing decisions, they can directly contribute to strengthening local economies. However, many government entities still rely on traditional purchasing methods, such as RFQs or catalogs, as transitioning to a digital e-procurement system can be challenging. Factors like budget constraints, limited staff resources, and the complexity of implementing a new tool can slow the shift to modern solutions. These traditional processes, while familiar, can sometimes make it harder to connect with local suppliers or achieve mission-focused purchasing goals. By partnering with the right e-procurement provider, governments can simplify the transition, improve efficiency, and more effectively support local businesses.

 

Empower local purchasing and maintain control

While cost savings are still a primary goal, many local government departments are now focusing on broader, mission-driven objectives like sustainability and purchasing from local suppliers. E-procurement is an effective way to meet these goals. Organizations like Amazon Business connect you with small, local, and diverse businesses while managing warehousing, transportation, delivery, and returns for most products.

This streamlines the process of finding and purchasing from vendors in your community. With government-specific purchasing features, you can empower buyers while supporting compliance policies and staying in control of spending.

 

Guide buyers to local sellers

Amazon Business simplifies purchasing with Guided Buying, allowing administrators to set preferences and policies that prioritize local businesses. For example, you can create policies to highlight sellers within a specific zip code, city, or state, ensuring buyers see local business options at the top of their search results.

Additionally, Guided Buying makes it easy to filter for veteran-owned, women-owned, minority-owned, HUBZone-certified small businesses, and more. This functionality not only helps supplier diversity goals but also supports the economic growth of your community.

 

Streamline tax-exempt and bulk purchasing

Managing compliance is another key requirement for government procurement teams. The Amazon Tax Exemption Program helps eligible organizations make tax-exempt purchases and manage these permissions across their organization, simplifying financial management and supporting compliance with fiscal policies.

For larger orders, the Request for Quote tool allows teams to request custom quotes for bulk quantities at their preferred price or discount. This feature connects you with pre-vetted bulk suppliers who can provide offers tailored to your department's specific needs, streamlining the procurement process for essential goods and services.

 

Track local spend

One challenge with traditional procurement methods is the difficulty of tracking and reporting spending, especially when multiple departments are involved. Without clear insights, it’s harder to meet spending goals and show the impact of purchasing decisions.

A strategic e-procurement solution can solve this by providing tools for better visibility. With detailed analytics and reporting, procurement leaders can consolidate suppliers, reduce risks, and make informed decisions that align with community investment goals.

Amazon Business makes tracking purchases easier with tailored insights. The Spend Visibility dashboard, included with Business Prime, provides real-time data on your spending. It allows you to monitor how much your department spends in specific categories or with small, local, or veteran-owned businesses. This information can be shared with department heads and stakeholders, offering greater transparency into spending, aligning with budgets, and supporting local investment goals.

 

Start strengthening your community today

Modern procurement strategies can help local governments support small and local businesses, boosting local economies and creating stronger communities. Partnering with local suppliers also builds public trust by demonstrating a commitment to the community. Amazon Business provides tools to help you set, track, and achieve more responsible purchasing goals, making it easier to diversify and strengthen your local supply chain.

Learn how to streamline purchasing while supporting local businesses