PRS for Music hits the right note with procurement overhaul

Will Green is news editor of Supply Management
4 February 2015

Music rights organisation PRS for Music is overhauling its procurement function to cut the number of suppliers and tackle maverick spend.

PRS, which issues rights to use music on behalf of its 100,000 members, has an annual spend of more than £40 million across in excess of 700 suppliers.

The changes include renegotiating contracts and centralising procurement, though departments will still be able to carry out purchasing.

Procurement manager Lizzy Daniel, who joined the organisation in 2012, said: “I was brought on board to take a look at procurement across the company and to establish the procurement function.

“Before my arrival employees were empowered to undertake procurement for their specific department and even across functions. This had created a risk of maverick spend. My objective was to identify ways to prevent maverick spend, and associated risks, while establishing a professional procurement process.”

Daniel said a new software system from Wax Digital was being implemented to manage suppliers and procurement would be centralised over the next 12 to 18 months. “However, we’re also keen to ensure that employees are still empowered to purchase on behalf of their departments, but to ensure that this is within specified guidelines and processes,” she said.

Daniel said PRS, which operates across two sites, would be building a preferred suppliers list.

“Initially the goals are to ensure that all suppliers have clear contracts in place and are contained within the contract management solution,” she said.

“We’re also identifying suppliers with expired contracts to review and renegotiate terms with, and these will also then be bought into the system as part of our best practice approach. Once we’ve achieved this then we’ll move to the next stage of building our preferred suppliers list to support the business moving forward.”

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