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:

  • Purpose and main functions. It is important to clearly define the purpose for which a CPO is created. This can include achieving efficiency, reducing corruption, increasing transparency in procurement, and so on. It is also necessary to specify the main functions that a CPO will perform to achieve that goal.
  • Funding. Find out who will give money to fund a CPO. In other words, it is necessary to define a financial model and evaluate its feasibility and viability.
  • Procurement items. Determine what specific products or services a CPO will procure. It is worth understanding whether the CPO will procure a wide range of goods and services, or whether the organization will focus on a specific group of goods.
  • A team Hiring personnel with appropriate qualifications and experience is an important element. The team composition must correspond to CPO's tasks and functions.
  • Monitoring and evaluating performance. Develop mechanisms for continuous monitoring and evaluation of CPO's effectiveness. This will guarantee the prompt detection of issues and the subsequent adaptation of the development strategy as needed.
  • Alternative mechanisms. Before creating a CPO, it is worth carefully considering the existing alternative mechanisms that are already being developed in Ukraine.

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.