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Defra 'to make major savings via procurement reform'

16 October 2011

Major changes to procurement at the Department for Environment, Food and Rural Affairs (Defra) are helping to unlock major savings for the public sector body.

This is according to head of procurement and commercial at Defra Andrew Croston, who told Supply Management that there is much potential to be gleaned from creating efficiencies on government grants for research and development (R&D).

A recent review of £300 million worth of R&D spending has achieved significant benefits by changing specifications, eliminating waste and improving sourcing.

In particular, the introduction of electronic sourcing, tendering and paperless contract management has helped to slash procurement costs from £6.8 million to £3.8 million annually.

"I have a savings target of ten per cent and we are on target to deliver that," Mr Croston said.

Last month, Henley Business School at the University of Reading published analysis suggesting that public sector procurement improvements will be vital if the government is to meet its deficit reduction targets.

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Categories: Central Government

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