The public sector paradox of engaging procurement experts

  • Published on: 27 February 2018
  • By: Frances Talman

The target of reducing annual government borrowing has resulted in the whole of Public Sector being in a prolonged and deep spending cut. At eXceeding we regularly face Public Sector procurement teams that do not have sufficient resource available to deliver the mandated organisation transformational procurements within the target timescales. The ‘do more with less’ challenge has led the usually high pressured procurement teams, to carry an even greater burden leading to: - Savings being deferred due to procurement delays - Knowledge shortfall in the services to be purchased - Optimal outcomes not being delivered - Insufficient resource to meet organisational target timeframes - Lack of procurement and organisational innovation - Scarcity of time for suitable market engagements - Pressures not to appoint external consultants - Difficulties in recruiting, retaining and training procurement talent - Challenges finding, evaluating and selecting the right supplier - Inexperience in managing stakeholders If your procurement challenge involves any of the above, what can you do? - You may opt to supplement your procurement teams by recruiting, hiring interims, or consultants, all of which takes time! - You may go down the more cost effective route of hiring an interim, or long term consultant route? But either way, you can then face the ‘The Paradox of Public Sector Procurement’ where you need to run a costly procurement exercise for expert resources to support your cost saving procurement exercise! Break-free from the trap with the first dedicated national procurement support framework allowing direct award for the resource you need to deliver your procurement. The National Framework Agreement1 allows any Public Sector organisation to utilise the framework without the need to run an open competition to engage your procurement experts. Bring the experts in early to ensure that the procurement is properly structured, thought through and delivered in a controlled environment. This saves significant time, substantial cost and reduces procurement risks when engaging Public Sector suppliers. Previous Public Sector procurements carried out by eXceeding experts in Addenbrooks Hospital, Radioactive Waste Management & various schools & academies, have achieved savings as follows: - Speed to market realising savings quicker 7%-23% - Optimisation of procurement practices up to 15% - Innovation adoption including technology 9%-15% - Implementation of better negotiation strategies 8%-15% - Supplier competition 3%-5% - Bundling of services up to 18% 1Commercial Procurement Services Fixed Fee Procurement Project Delivery Service: Multi Supplier National Framework Agreement (F/045/FFPP/17/MH OJEU: 2017/S 172-352522)