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Logic behind shared procurement strategy 'is obvious'

12 May 2011

The benefits of adopting a shared procurement policy is becoming increasingly clear, according to a public sector leader.

Michael Wood, head of procurement at the London borough of Haringey, told the Guardian Public Leaders Network that the arguments behind its plans to enter into a procurement alliance with seven other London councils are "obvious".

In the last year, the authority has already been able to make savings of £12 million through a more unified procurement policy, such as by reducing the number of bottled water suppliers it utilises from 14 to one.

By adopting a shared sourcing strategy with the other members of the North London Alliance, Mr Wood believes that a saving of between five and ten per cent on its annual spend of £2.5 billion can be achieved.

"With visibility over spending we are not cutting blind and, when required, can demonstrate our purchasing and savings record with impressive transparency," he added.

Paul Bettison, leader of Bracknell Forest Council, told Supply Management earlier this year that procurement staff can play a key role in helping local authorities to meet their savings targets.

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Categories: Local Government

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