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Procurement changes 'can be vital to achieving savings'

20 June 2011

A new independent report has highlighted a number of ways in which public sector procurement can be overhauled to help the government meet ambitious savings targets.

Consultancy group Accenture has compiled a study suggesting that government organisations must change both the "structure and capabilities" of its supply purchasing to reduce costs while maintaining service quality.

Among the reforms it suggests are an increased role for cloud computing, the development of collaborative sourcing models and the creation of procurement-focused "middle offices".

Other priorities include a new focus on supplier relationship management, as well as adopting a "zero-based" budgeting approach, whereby procurement budgets are created from scratch each year.

Author Rob Woodstock, senior executive for Accenture Supply Chain Management consulting, said: "Given the cost-reduction pressures that so many agencies are currently feeling, the right time to pursue these initiatives could very well be now."

This comes after Aberdeen Group published a report earlier this month suggesting that procurement process improvement is likely to also become a growing issue in the commercial sector.

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Categories: Central Government


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