Procurement is sometimes overlooked as a core commercial lever for delivering value for money. However, with the significant changes introduced by the Procurement Act and the National Procurement Policy Statement, its strategic importance is increasingly recognised.
Recent research by Commercial Services Group with local government leaders found that 76% view the Act as a transformational opportunity. Yet, the findings also reveal critical gaps in strategic engagement, cultural readiness and delivery capability, with only 28% feeling fully prepared for the new transparency requirements.
For me, the research highlights a gap between intent and operational preparedness. While the Act brings clear strategic implications, procurement is not always prioritised as a driver of strategic and cultural change – especially as councils manage multiple changes at once. This raises important questions: How can procurement teams maximise their time and navigate the new legal landscape? Is procurement a key part of transformation programmes? Are opportunities for innovation and new business models discussed at a senior level? Should procurement be a standing item on transformation agendas?
Budget constraints have increased pressure on staff, particularly in back-office roles. To get the best from procurement, councils need to be strategic. Are teams familiar with straightforward ways to ensure compliance, consistency, and transparency – such as using frameworks, which build compliance in by design?
To further support internal resources and unlock capacity, procurement managed services can be hugely beneficial, delivering value and providing flexible, specialist support across areas like contract management and tendering.
Procurement is not an end in itself. The new Act is about enabling better social and economic outcomes across the wider public sector and it will undoubtedly stimulate innovation and transformation.
Perhaps now is the time to fully consider procurement's commercial and strategic importance within your organisation.
Tarryn Kerr is procurement services managing director at Commercial Services Group
