What are the 4 major procurement challenges confronting local governments?
Procurement can be a difficult task for any organisation, but there is little room for error in the public sector, where funds are limited and local constituents must be prioritised.
Traditionally, this has been accomplished through an open procedure. Any supplier may bid on an advertised opportunity or gain access through a Framework agreement, which is created by a council or buyer and accepts a number of suppliers as competitors to deliver the services. There is also the Dynamic Purchasing System (DPS), which works similarly to a framework but allows for the continuous addition of new suppliers.
Because most public bodies are governed by regulation, tender outcomes can and frequently are challenged.
Our category experts are dedicated to public sector procurement and are familiar with the steps required to manage a fully compliant Public Contracts Regulations 2015 (PCR 2015) procurement process. We are uniquely positioned to understand the needs of local governments, and to enable provide advice on the most appropriate routes to market via open procedures, Frameworks, DPS or Neutral Vendor Frameworks faster, more flexible, and compliant procurement.
Spending Cuts
Local government procurement professionals must strike a delicate balance between scrutiny over how money is spent and public criticism of any inefficiencies.
Councils will continue to face financial challenges, making revenue generation more difficult, while demand for services will increase. This will make spending wisely and with a genuine desire to maximise value for money more important than ever.
We understand that the term “consultancy” can be difficult to sell in the public sector and in particularly to procurement teams. Contrary to the perception of those who see it as a waste of money to hire expensive outside procurement resources to do work that could be done in-house, public sector consulting provides organisations with the opportunity to deliver procurement resources in a much more efficient manner.
We review supplier contracts on a daily basis, so we know how to get the most out of your vendors. This approach frees up internal resources to focus on more organisation-critical tasks while also establishing a good working relationship, extracting added value, and benefiting from cost savings.
The Value Proposition of Procurement
Local government procurement is increasingly being asked to demonstrate how it can contribute to both the top and bottom lines. However, the change raises difficult questions for LGP managers:
Procuring through public sector frameworks and Neutral Vendor Frameworks, can deliver more agile solutions. This means that local governments can achieve fully compliant, consistent, and effective procurement in line with strategic goals by utilising various levels of support, all without the challenge of budget approval.
In these difficult economic times, cost-cutting strategies are more than just a “nice to have,” they are an essential component of your organisation’s strategy. We provide a structured and focused assessment of what is possible for your organisation as part of our procurement cost optimisation solution, ensuring that fair, balanced, and transparent deals are secured, creating long-term value and sustainable benefits.
Capacity & Capability
Local government procurement is governed by legislation. Procurement is not always viewed as a strategic added value process, often more with a focus on the tendering process’s compliance and legal aspects. Rather, it is regarded as a policing and rule-enforcing function.
Procurement can be a reactive function that is frequently ignored until specifications have been established. Contrary to commodities and category management, its purpose is derived from and revolves around contracts. There is no continuous process in place to manage internal and supply market development and opportunities, with contract expirations serving as peak moments.
We frequently see organisations making hasty purchasing decisions, sometimes out of necessity. Due to a lack of staff capacity or experience in managing complex supplier relationships, supplier contract terms written by their legal teams are accepted but not fully understood or managed.
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Add to that a lack of data visibility – both in terms of your own spend and wider market data for benchmarking – and it’s easy to see how internal teams can struggle to ensure they’re getting good value for money.
We may investigate whether you would benefit from a flexible resource model that pulls in the resource you require when you necessitate it and saves you money when you do not. This delivery model, which supplements a small permanent team with cost-effective resources that are only used when needed, can save you money and provide better long-term results.
Reaching Net Zero
Local governments are crucial to achieving net zero energy. Bringing together challenges and coordinating activities will accelerate change while lowering costs.
One of the most complex existential threats we face today is climate change. The scope and depth of action required to address and arrest the consequences is vast. In the United Kingdom, local authorities bear a significant portion of the burden in delivering this.
Local councils are responsible for one-third of all emissions, according to?Climate Emergency UK. Their statutory roles will need to be fundamentally altered in order to transition to carbon-neutral activities:
During a period of decreasing resources and increasing demand for services, this transformation will necessitate the following:
They must also represent the most vulnerable members of society as place leaders, ensuring that these changes do not exacerbate existing inequalities.
We assist organisations in translating their goals for increased sustainability in procurement and their supply chain into action plans that produce tangible results.
We evaluate the risks in your supply chain using our knowledge and experience, determine achievable and measurable sustainability objectives, and define and prioritise the levers that will help meet those social and environmental goals.
Where preparatory work is required to gain supply chain visibility or spend control, our team will not only advise on what work is needed, but will also assist in putting in place the systems and processes to make it happen.
What other issues does local government face when it comes to procuring enforcement services?
Local governments are currently dealing with pandemic recovery, BREXIT challenges, and a slew of other issues, which makes prioritising enforcement services difficult. Furthermore, time frames are frequently long and tedious due to the complexity of current procurement processes, with a heavy reliance on third-party vendors and consultants.
Some local government organisations are concerned about the corporate nature of the tendering process and how, in the public sector, social value dictates that poor quality tender submissions are frequently used for core delivery rather than better-quality submissions.
Effective public sector procurement is more than just checking a box. Finding the right supplier necessitates a significant investment of expertise, time, and resources. Only then can you ensure service or product continuity and mitigate risks in your supply chain.
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