Procurement Systems for Construction: Challenges and Solutions
The construction industry is one of the largest sectors in the Nordic countries, with annual revenues exceeding hundreds of billions. Yet procurement in many construction companies is still managed with phone calls, emails and spreadsheets. The result is material waste, duplicate orders, invoice chaos — and millions lost to uncontrolled purchasing.
In this article, we look at why procurement in construction is so challenging, what a modern procurement system for construction needs to deliver, and how contractors like Skanska and Hæhre are already reaping significant benefits with the right solution.
Key takeaways
- • Construction has some of the most complex procurement needs: project-based, many suppliers, ordering from the field
- • Traditional ERP systems and manual routines work poorly on construction sites
- • Skanska saves over 5,000 hours annually with digital procurement via Vieri
- • Hæhre has consolidated 70–80 framework agreements into one shared platform across the entire group
Why is procurement in construction so challenging?
Procurement in construction differs fundamentally from other industries. Here are the key challenges:
1. Project-based procurement
Every construction project is unique. Material needs vary from project to project, budgets are project-specific, and purchases must be linked to the correct project number and cost center. A procurement system that doesn't understand project structures creates more work than it solves.
2. Hundreds of suppliers
A typical large contractor has 50–100 framework agreements and deals with hundreds of suppliers. Everything from concrete and steel to workwear, tools, rental equipment and subcontractor services. Without a central system, it's impossible to keep track of who has agreements with whom — and at what prices.
3. Field workers ordering on-site
In construction, it's often the workers on-site who know what's needed. But they don't sit in front of a PC with access to the ERP system. They need a simple, mobile-first solution that lets them order when the need arises — without calling the procurement department.
4. Material waste and duplicate orders
Without central visibility into what has already been ordered, many projects end up with duplicate orders, unused materials and unnecessary waste. In an industry with thin margins, this can make the difference between profit and loss on a project.
5. Invoice chaos
Large contractors receive tens of thousands of invoices every year. Skanska receives around 300,000 invoices annually. When invoices can't be automatically matched against orders and goods receipts, the finance department ends up manually checking every single invoice. It's expensive, slow and error-prone.
6. Poor contract compliance
When employees don't know which supplier agreements the company has — or find it easier to call a supplier they know — they purchase outside the agreements. This typically costs 2–5% of the procurement budget in lost discounts and uncontrolled purchasing.
How traditional solutions fail in construction
Most procurement systems are designed for office environments. They assume the user sits at a PC, has time for training and can navigate a complex interface. That works poorly on a construction site.
- ERP systems (SAP, Visma, Unit4) are powerful but too complex for field workers. The result is low user adoption and orders going outside the system.
- Phone and email provide zero traceability. No one knows what was ordered, by whom, at what price, or whether it was approved.
- Spreadsheets break down as the organization grows. They're not updated in real time, provide no approval workflows and are impossible to consolidate across projects.
- Supplier portals lock you into a single supplier and don't provide cross-agreement visibility.
Did you know?
A manual purchase order costs between €50 and €150 in administrative time. With thousands of orders annually, this adds up to millions. Read more about the hidden costs of manual procurement →
What should a modern construction procurement system do?
A procurement system for construction must be built for the reality of a construction site — not for an office landscape. Here's the checklist:
- ✓Mobile-first ordering: Field workers must be able to order from their phone, right from the construction site
- ✓Project-based budget control: Each purchase is linked to the correct project, cost center and budget
- ✓Unified supplier catalog: All framework agreements in one place, accessible to everyone who orders
- ✓Employee purchasing with budget limits: Employees get a quota they manage themselves, with full spending visibility
- ✓Automatic 3-way matching: Purchase order, goods receipt and invoice are verified automatically
- ✓ERP integration: Seamless connection to Visma, SAP, Unit4 and other finance and project systems
- ✓Real-time visibility: Management sees spending per project, per supplier and per department — in real time
- ✓Low barrier to entry: The system must be so simple that a field worker can order in under 2 minutes — without training
How Vieri solves procurement challenges in construction
Vieri is built for Nordic industry — including the construction sector. The platform covers the entire chain from ordering to payment and is designed for users who aren't at a desk.
Ordering from mobile — like an online store
With Vieri Ordering, field workers can log in from their phone and order equipment when the need arises. The user experience is designed to be as simple as shopping in a regular online store. It requires minimal training and drives high user adoption — even among employees who have never used a procurement system before.
All supplier agreements in one place
Vieri consolidates all framework agreements into a shared portal. Employees only see approved suppliers with agreed prices. This eliminates maverick buying and ensures the company gets the negotiated discounts.
Budget control and approval workflows
Each purchase can be linked to a project, cost center and budget. Approval workflows ensure the right person approves the order before it's sent. Project managers have real-time visibility into spending.
Automatic invoice matching
When purchase orders, goods receipts and invoices are automatically connected, the finance department is freed from manual verification. Discrepancies are caught automatically. Read more about how 3-way matching works →
Results from Skanska and Hæhre
Two of Norway's largest contractors already use Vieri to digitalize their procurement. The results speak for themselves.
Skanska: 5,000+ hours saved annually
"We let field workers order the equipment they need themselves. It saves us a lot of time and ensures we get the right products at the right price."
— Sindre Knutzen, Digitalization Advisor, Procurement, Skanska Norway
Skanska has 2,500 field workers who can order directly from their phones. With 25 supplier agreements consolidated in Vieri and around 300,000 invoices annually, digitalization has delivered enormous savings. Just by saving one minute per invoice, Skanska saves over 5,000 hours per year.
Hæhre: From fragmented to unified solution
"We finally have a system that provides visibility and makes everyday life easier for both buyers and project managers."
— Morten Kiran, Procurement Director, Hæhre
Hæhre is the largest company in the AKH Group, with over 2,000 employees and NOK 9 billion in annual revenue. After years of growth and acquisitions, they were left with scattered supplier agreements and disparate systems. With Vieri, they've consolidated 70–80 framework agreements into one shared platform — accessible across the entire group.
Get started with digital procurement for construction
The construction industry is facing major changes. Margins are thin, competition is fierce, and requirements for documentation and sustainability are increasing. Contractors who digitalize procurement now gain a lasting competitive advantage.
With Vieri you can:
- Let field workers order themselves — from their phone, on the construction site
- Consolidate all supplier agreements into one shared portal
- Get project-based budget control in real time
- Automate invoice matching and eliminate manual verification
- Cut procurement costs by 10–30%
See how Vieri works for contractors
30-minute demo. See how Skanska and Hæhre have digitalized procurement — and how you can do the same.
Book demo →
