The Importance of Efficient Public Sector Procurement
Efficient procurement in the public sector is an important factor when it comes to driving cost savings and streamlining processes. Public sector organisations and those that work with them rely on efficient procurement to obtain goods, services and works necessary to ensure the best value for the public purse. Because of this working to improve procurement processes and overall supply chain efficiency can help to ensure that taxpayer money is used as effectively as possible.
Cost
Cost and time savings are probably the most obvious benefit that comes from efficient procurement processes. It reduces unnecessary expenditure across the end-to-end process, ensuring that taxpayer’s money is spent as efficiently as possible. Cost savings can also be reinvested to deliver more and a wider range of services.
Resources
In addition, efficient procurement can lead to better resource allocation. Resources can then be deployed faster and more effectively. In the public sector this can be make a hugely positive impact as delays can have significant impacts on service delivery and public welfare.
Fairness
Lastly, efficient and robust public procurement gives stakeholders confidence that the correct services are being secured to deliver the best possible outcome within a transparent and fair framework. This creates an environment of equal opportunities for businesses of all sizes. A benefit that comes from this is it encourages participation from a diverse range of suppliers.
An Unbiased Approach
Efficient public procurement fosters fair competition and encourages a diverse range of suppliers. This is done by implementing transparent bidding processes and standardised evaluation criteria. By ensuring that procurement opportunities are openly advertised, and selection criteria is clear and unbiased, it creates a level playing field. This includes potential suppliers of all sizes, including small and medium-sized enterprises (SMEs).
Optimising Public Sector Procurement with Managed Services
Working with a managed service partner for your supply chain management can have significant benefits when it comes to improving efficiency in Public Procurement. There are complexities that surround regulatory landscapes, diverse suppliers and a need for transparency in the public sector. These include regulatory and compliance requirements, managing a wide spectrum of supplier capabilities and standards, and keeping clarity in procurement processes. On top of this is the scrutiny that can come with how responsibly taxpayers money is being spent.
In addition, procurement is a constantly evolving area. Keeping up with new and emerging requirements challenges even the most well-resourced procurement teams. Internal resources can be spend on other core activities when you leverage dedicated external expertise and resources. It also enables procurement teams achieve that all important goal of doing more with less.
The benefits of Managed Services in Public Sector Procurement
Improved Supplier Management
By improving your processes around supplier management, you can ensure that suppliers meet set criteria and standards. These can be based around compliance, ESG, risk and more to meet your specific requirements. At Achilles we have a rigorous due diligence process that is provided by our team of auditors and validators to ensures suppliers meet the highest standards.
Better Risk Management
Public Procurement is often vulnerable to risks ranging from regulatory non-compliance to supply chain disruptions. Outsourcing supply chain management and procurement can help to reduce these risks. Achilles collects supplier data and analyses it across a wide range of factors that public sector procurement professionals need to enable a more proactive approach to risk mitigation. With greater supply chain visibility, procurement processes become proactive rather than reactive. This enables organisations to foresee potential problems and put in place contingency plans to help alleviate risks. In doing so, there will be a positive impact on the cost and resource implications that go along with those risks.
Greater Transparency and Compliance:
Transparency and fairness are the fundamental requirements of public procurement and can be supported through better supply chain management. Having a clear view of your suppliers and their performance across your key performance indicators and regulatory requirements has many benefits. It enables issues, efficiencies, and opportunities for improvement to be more easily identified, measured and managed.
Cost Efficiency:
By streamlining procurement processes it makes the time and resources spend on supplier management significantly less. This means cost savings and resources can be used elsewhere.
Sustainable and Ethical Procurement
Public sector entities are increasingly required to consider environmental and social factors in procurement decisions. With is in mind, the consideration of ESG factors when managing suppliers uses the power of supply chain relationships to work efficiently at large scale.
Performance Management and Continuous Improvement
Managed services also play an important role in performance management and continuous improvement. Through regular monitoring and evaluation of procurement processes and supplier performance you ensure ongoing improvement. This approach ensures that procurement practices are not only compliant and efficient, but also adapt to changing needs and standards. This leads to lasing improvement and excellence in public sector procurement.
The MyAchilles global platform enables public sector entities to manage international supply chain risks, and continuously improve performance whilst increasing transparency. The platform enables organisations to view the outcomes of the Achilles’ in depth supplier evaluation, supply chain risk assessment and rating process.
Ensuring Transparency and Fairness through Regulatory Compliance
Transparency and fairness are not just ethical mandates but also legal requirements in public sector procurement. For example the new Procurement Act which the government has indicated will go live from October 2024. The act ensures organisations uphold these principles which is important for maintaining public trust and adhering to regulatory standards within your organisation.
Regulation ensures that government organisations follow set rules, creating a level playing field for suppliers and fostering trust among stakeholders. Equally transparency builds trust amongst suppliers, citizens, and stakeholders by showing public funds are being used responsibly.
The Impacts of Non Compliance
The impact of non compliance can be vast. An example of lack of transparency negatively effecting procurement processes is the case of Braceyourself Limited and NHS England. The NHS breached procurement law through bidding criteria mistakes. This meant that Brace yourself lost a contract that they would otherwise have been successful in winning. This highlights the importance of a transparent and fair procurement process that is regulatory compliant. Achilles supports organisations by ensuring they are not caught out in non compliance. Our in depth understanding means we are well positioned to ensure your organisations compliance now as well as actively engaging for future changes.
Enhancing Public Sector Procurement Efficiency in 2024 and Beyond
As we look forward to 2024 and beyond, improving efficiency in Public Sector Procurement is an important factor in ensuring transparency, fairness, and compliance. There are many complexities that often go hand in hand with implementing more efficient procurement processes. By outsourcing your supply chain management you take away the burden on cost and resource to gain a strategic edge.
As organisations continue to navigate the changing landscape of public procurement the focus will remain on exceeding the expectation of taxpayers, suppliers, and stakeholders.
Contact us today to discuss how we can support your Public Procurement Efficiency.
Another article that may also interest you: ‘The Steps Needed to Implement Efficiency in Public Procurement’
Another article that may also interest you: ‘The Steps Needed to Implement Efficiency in Public Procurement’
