Prudent Procurement Consult. PPC

Prudent purchasing
By:
Malcolm Harrison
19 Mar 20
Supply chain managers must push back against pure cost-cutting and ask what really matters to the public purse, says Malcolm Harrison.

I truly believe this is a golden time for procurement in the public sector. The trilemma of potential trade wars, a slowing global economy and continuing uncertainty around what Brexit will mean in practice offers opportunities for procurement and supply chain professionals to demonstrate their true worth, and strengthen their supply chains to mitigate risks.

Why the confidence? Because qualified, trained supply chain managers know all about risk, and what’s important to keep supply chains moving. The daily diet of managing changes in the regulatory landscape, navigating the impacts of sociopolitical change and switching to new supply chain models is what they excel at. Along with the use of accurate data to make good decisions, comparing the performance of suppliers and understanding how goods, services and infrastructure all benefit from best-practice procurement.

The pressures on procurement teams in the public sector often seem insurmountable. The procedures to procure services are long and complex, while supply chain managers have to deliver ever-greater efficiencies. Professionals in the public sector must show clearly that they follow responsible procurement practices and deliver good value; not least because spend in the public sector is huge and vitally important to our citizens.

According to the Institute for Government, a third of total public expenditure – around £284bn each year – is spent on procurement. The chancellor’s promise of the largest rise for 15 years of 4.1% in public spending will mean procurement teams across central and local government have greater funds – and responsibility to achieve greater outcomes. Good procurement is not created by big budgets alone, but must be conducted wisely, with contracts professionally managed to meet multiple demands.