The concept of Central Procurement Organizations (CPOs) was initiated in Ukraine in 2016 and is now actively developing. That is confirmed by existence of ten operating CPOs that has been created in Ukraine over the past 7 years. Interest in the development of this institution is shown both at the central level and at the level of local self-government.
Modern CPOs have already achieved certain positive results and effects by improving procurement processes. However, it is important to note that there are also significant challenges along with these achievements. They require a clear understanding of what tasks can be performed by CPOs, what resources and tools are needed to achieve the goals, and what legislation must change so that CPOs can meet expectations.
For the further development and success of CPOs, it is important to understand both the limitations and opportunities of this institution.
When creating new CPOs, it is important to use positive experiences and avoid mistakes that were made earlier. Positive experiences and practices that have already demonstrated their effectiveness should become the basis for newly created CPOs and help existing ones grow and improve efficiency. In addition, it is necessary not to forget about the existing problems in the work of CPOs, in particular, the existence of regulatory gaps and difficulties that arise in organizing the work and maintenance of these CPOs.
When creating a centralized procurement organization, there must be clear understanding of the following aspects:
In general, the successful creation and operation of a CPO requires in-depth analysis, clear strategic planning, and the ability to adapt to changes in legislation and public needs.