The latest market focus report by BiP Solutions “Challenges and Opportunities for Local Government Procurement in a Digital World” reveals that the biggest barrier to successful procurement is the lack of internal understanding of ‘business need’.
Challenges and Opportunities for Local Government Procurement in a Digital World
124 organisations took part in a survey which ran from September to October 2018. Organisations from a variety of sectors were represented including local government, central government, education, healthcare, housing associations and charities.
62% of respondents agreed that “Lack of understanding of ‘the business need’” internally was the biggest barrier to successful procurement. Limited skills and expertise are viewed as the second biggest barrier to successful procurement. The survey has revealed that only 25% of organisations surveyed “say they have the right level of experience and skills to cope with current internal and external environmental demands.”
Among other key findings from the survey was the importance placed on the need to deliver social value. This was viewed as having the biggest impact on procurement strategies across the public sector, with 85% of organisations considering it to have a high or medium impact. Social value is something that we have predicted to be a procurement trend for 2019 as there is a growing tide of opinion amongst procurement professionals that 2019 will be the year when social value and sustainability will really take hold, as the public sector has begun to realise that cost and quality are both equally important when selecting suppliers.
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If you would like to access a copy of “Challenges and Opportunities for Local Government Procurement in a Digital World”, you can download your copy here.