How Procurement Teams Can Build Compliance into Their Sourcing Process

In highly regulated industries like aerospace and defense (A&D), and life sciences, procurement professionals are held to a higher standard. It’s not enough to source cost-effectively or meet deadlines — your processes must also comply with a maze of export control regulations, including ITAR, EAR, and DFARS. 

But here’s the challenge: 

Most sourcing workflows weren’t built with compliance in mind. 

Too often, compliance becomes a checkpoint at the end of the process — a final review, a legal consult, or a scramble to ensure nothing slipped through the cracks. This reactive approach slows down the process and increases the risk of errors or omissions.  What if compliance was embedded throughout your sourcing process instead? 

In this blog, we’ll walk through the reasons sourcing compliance is so complex — and offer five practical strategies to make compliance part of your process, not a hurdle to overcome. 

Why Sourcing Compliance Is So Difficult in Regulated Industries 

Procurement teams in highly regulated sectors face an added layer of complexity. Unlike consumer or commercial environments, your sourcing decisions can have a direct impact on contract eligibility, export violations, and national security obligations. 

Here’s why it’s particularly challenging: 

• Multiple frameworks: Teams must navigate ITAR, EAR, DFARS, and often NIST SP 800-171 simultaneously — with overlapping but distinct requirements. 
• Global supplier base: Export-controlled data can’t be shared freely across borders or to unauthorized individuals. 
• Siloed tools: Email chains, spreadsheets, and shared drives make it nearly impossible to enforce controls or maintain traceability. 
• Lack of built-in safeguards: Many sourcing systems don’t include features to prevent unauthorized access, control technical data, or automate documentation. 

The result? 

A high-risk environment where teams must choose between speed and certainty — unless the process itself is redesigned. 

5 Ways to Build Compliance Into Your Sourcing Workflow 

Rather than bolting compliance onto the end of your process, the goal is to bake it into every step — from RFx creation to award decision. Here’s how:

1. Start with Identity: Know Who’s Accessing Your Sourcing Events

At the foundation of sourcing compliance is a simple question: Who’s accessing your data — and are they authorized? 

Identity proofing and role-based access are critical in regulated industries. You need to ensure that only verified users with the proper credentials and permissions can view or act on sensitive sourcing materials. 

What to do: 

• Implement identity proofing for suppliers and internal users. 
• Use platforms that support multi-factor authentication and secure access portals. 
• Apply role-based permissions to restrict access based on job function or geography. 

This protects your data and ensures compliance with ITAR and EAR export restrictions. 

2. Centralize the RFx Workflow

When sourcing activity is spread across emails, documents, and manual trackers, compliance becomes nearly impossible to enforce. Centralization reduces fragmentation, allowing teams to apply standardized, repeatable processes. 

What to do: 

• Consolidate RFx creation, supplier communication, and bid collection in one platform. 
• Use structured templates that embed compliance rules and required fields. 
• Maintain a centralized document repository with version control. 

This approach not only improves compliance but also saves time and reduces confusion for suppliers. 

3. Restrict Data Sharing to What’s Compliant

One of the most common compliance risks in procurement is the unintentional sharing of export-controlled technical data. This can happen when teams upload attachments to open portals or email documents without proper controls.

What to do: 

• Educate sourcing teams on what constitutes controlled technical information. 
• Use tools that restrict or prevent uploads of sensitive content. 
• Apply labels or metadata to files to flag export-controlled materials. 

Think of this as digital guardrails — ensuring sensitive data doesn’t get shared where it shouldn’t. 

4. Build Compliance Checkpoints into the Workflow

Rather than rely on one final review at the end of a sourcing event, insert compliance checkpoints throughout the process. These can be automated, manual, or a combination of both. 

What to do: 

• Require suppliers to certify export compliance before submitting bids. 
• Include automated alerts when potentially non-compliant data is detected. 
• Insert approval steps for export control officers or compliance managers where needed. 

This helps catch issues early — before they derail a sourcing event or put your company at risk. 

5. Enable Audit Readiness with Real-Time Traceability

In regulated industries, it’s not just about being compliant — it’s about being able to prove it. 

Whether you’re preparing for an internal review or an external audit, traceability across sourcing events is essential. 

What to do: 

• Maintain logs of RFx creation, bid activity, access history, and award decisions. 
• Ensure every interaction with sourcing data is timestamped and attributable to a verified user. 
• Retain historical sourcing data in an audit-ready format. 

This not only satisfies auditors but also builds trust internally and across your supplier network. 

What a Compliance-First Sourcing Process Looks Like 

Imagine a sourcing process where: 

• Every supplier is pre-verified before seeing a bid 
• Sensitive data can’t be uploaded accidentally 
• Your team works within clear, automated workflows aligned with trade controls 
• Every action is traceable — not buried in someone’s inbox 

This isn’t a best-case scenario. It’s what sourcing in regulated industries should look like — and it’s achievable with the right mindset and infrastructure. 

Final Thoughts: Compliance Can Be a Catalyst, Not a Constraint 

When compliance is embedded into the process — not bolted on at the end — procurement becomes more efficient, not less. You reduce risk, improve supplier trust, and give your team the confidence to move faster with fewer exceptions. 

Ask yourself: 

• Where in your current workflow is compliance a bottleneck? 
• What small changes could make compliance a built-in safeguard instead of an afterthought? 

With the right strategy and tools, sourcing teams in regulated industries can meet their obligations without sacrificing agility.