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Surrey County Council achieves major procurement savings
Procurement staff at Surrey County Council have been able to deliver savings of £27 million for 2011-12 thanks to improved purchasing methods.
Andrew Forzani, head of procurement and commissioning, told Supply Management that the team has renegotiated a number of contracts and put pressure on leading suppliers to reduce costs via an "intelligence-led partnership approach".
"Our discussions with suppliers were led by spend data and reassessment of cost models, to see if there were areas where we could take cost out for suppliers," he explained.
Mr Forzani observed that the local authority does not have the same leverage as Whitehall when it comes to redefining supply chain relationships, but has been able to achieved results using innovative management and shared services.
This will help the local authority to meet its planned savings target of £200 million between 2012 and 2017.
Earlier this year, a report from the Henley Business School identified improved procurement tactics as a key component of public sector efforts to reduce the national deficit.
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Categories: Local Government