Crown Commercial Service targets £1 billion savings this year

Will Green is news editor of Supply Management
22 July 2015

The Crown Commercial Service (CCS) is aiming to deliver savings of between £800 million and £1 billion this year.

In the organisation's annual report chief executive Sally Collier said the CCS was planning to expand the volume of spend under its control by £2.5 billion in 2015-16. In 2014-15 the CCS channelled £15.1 billion of spend, up £1.9 billion on the year before.

“CCS is aiming to deliver between £800 million and £1 billion savings against a 2014-15 baseline through continued leverage of savings from spend on common goods and services, advisory support to departments’ most complex commercial transactions and through strategic supplier management,” said Collier.

The report gave examples of where the CCS’s complex transactions team, which provides support to central government departments, had helped renegotiate IT contracts at the DVLA, saving £57 million over three years, and negotiated with an incumbent supplier at the Department for Work and Pensions and saved £25 million over two years.

The CCS supported the delivery of £5.9 billion savings in 2014-15, made up of £1.9 billion price-related savings from centralised procurement of common goods and services, £1.6 billion of demand savings from consultancy and contingent labour spend and £2.4 billion from “leveraging relationships with suppliers and spending controls”.

Collier said “further investment in technology is also required” and it was a priority to implement a “Crown Marketplace”, described as an “integrated system to better support the end-to-end delivery of managed services”.

“Greater levels of automation including simple and easy to use catalogues is a key enabler to improving efficiency and effectiveness and reducing cost,” she said.

Collier said there would be a “modest level of recruitment of senior commercial specialists” but “overall staff numbers will decrease over the course of the year”.

“Our collective aim is to deliver significantly more budget-reducing savings, manage more spend on behalf of customers, continue to improve our service delivery and to achieve this with fewer but more capable resources,” she added.

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