A recent report by the Centre for Local Economic Strategies (CLES) has suggested that local authorities should award contracts based on the social value to the community instead of only considering budgets and timeframes. And so say all of us. Procurement can and must be based on more than just financial value – this is an approach that Norse Group takes both to our own purchasing of goods and services and to the bids that we make to supply local authorities.
Naturally, cost, compliance and risk will always be key considerations in procurement. Ignoring the economics altogether would be as irresponsible to local residents as making decisions on a purely financial basis. But buying decisions have the power to deliver substantial benefits to local businesses, local communities and the local economy, so this has to be a factor.
When the Norse Group tenders for contracts with local authorities we are clear to highlight what we can deliver for communities. Our social value policy sets out how we deliver services in ways that produce wider benefit to the community and capture longer-term savings for our clients and partners. Social value is at the heart of service delivery and built into the decision-making process of every operation. We draw up an agreement with each partner, ensuring that we understand the specific local needs and deliver projects that are aligned with this. Procurement decisions are made considering the percentage of local spend and providing opportunities for SMEs. Recruitment considers targeting vulnerable groups, who might not access traditional recruitment methods.
Our commitment to being a responsible business, through what we call The Norse Way, has a significant impact on our ability to successfully win and deliver contracts, and so we have a responsibility to drive this through our own supply chain. Adopting a progressive approach to procurement is a win-win for client, supplier and, most importantly, communities, so I applaud the CLES report and the work by Manchester City Council on which it was based, and urge public and private sector organisations to follow suit.
