Public sector organisations must make “radical” changes to procurement processes if they are to meet new efficiency savings targets.
This is according to business applications and services provider Advanced Business Solutions, which also claims supplier contract management and spend analysis need an overhaul too.
“For many organisations, further cost cuts will only be possible if they transform existing procurement policies,” claimed the firm’s managing director Dean Dickinson.
“Closer collaboration between multiple departments, eliminating manual-based processes and the consolidation of purchasing data is key to identifying where savings can be made.
“Spend analysis solutions provide a cohesive view of all procurement costs and improve financial transparency to assist with driving greater value from suppliers,” he added.
Dickinson made the comments after latest round of spending cuts were announced in Chancellor George Osborne’s Autumn Statement 2014 earlier this month.
Osborne announced that the government is planning to reduce public spending by around £30bn if Conservatives remain in power after the 2015 General Election in May.
Dickinson recommends spend analytics solutions to public sector organisations wishing to consolidate their finance and procurement systems to offer a unified and accurate view of all spending.
“Spend analysis must be a continuous process and not a one-off exercise. Many public sector organisations which have already reduced their spending are now tasked with making further cuts,” claimed the managing director.
“By investing in technologies that enable them to initiate and refine their plans on an ongoing basis, they are better placed to achieve the significant savings that are need,” he added.