Government unveils new plans to cut costs.

CIPS 18 April 2011

Top end management of the supply chain will reduce Government spending.

The Government is committed to changing the way in which it does business with its major suppliers through the introduction of “Crown Representatives” 
In the new plans, the Government will now be seen as a single customer that the Crown Representatives will ensure receive the best value for money that can then be passed on to the tax payer. Since May renegotiations with suppliers have saved the Government £800 million. Plans to push down prices include using existing suppliers along with competitively priced new and emerging businesses.

David Noble CEO for CIPS said “This is welcome news for the profession. Managing, centralising, and consolidating government suppliers follows good procurement principles and is exactly the right thing to do to optimise value for the tax payer.

The fact that prices will remain the same for every department, ensures good value for money from the public purse. The competitive element between suppliers will bring innovation and creative thinking to public contracts as well as improved relationships between buyer and supplier.

The collaboration shown between government departments demonstrates the importance of good procurement and supply chain practices and the positive results the profession brings to the public sector and of course, to business. By working together, comes the greater good.”

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