What do buyers need to know about procurement reform in April 2022?
You might have heard of the UK government’s procurement reform, but do you know what it means?
In 2020, the UK government published a Green Paper, outlining a range of proposed changes to public procurement. In particular, the changes focused on the way that public procurement is managed and delivered.
Following this Green Paper, public sector organisations were invited to participate in a consultation. In 2021, the government’s response was published.
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What is the reason behind the procurement reform?
As of January 2020, the UK is no longer part of the European Union. No longer bound by EU procurement directives, it is felt that now is the time to change public procurement processes.
What does this mean for buyers? Well, businesses should plan for how this procurement reform will impact their future purchasing plans.
What are the key changes that buyers need to be aware of?
As part of their mission to transform public procurement, the UK government has outlined several changes in their Green Paper. The key changes include:
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Creating a single regulation framework
A major element of the procurement reform is the government’s plan to simplify current regulations into a single framework. It is hoped that this change will streamline the procurement process in the public sector, for buyers and suppliers alike.
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Reducing the number of procurement methods
With the current processes, buyers are able to choose from seven procurement methods. However, the UK government aims to narrow these processes down to just three:
- Competitive flexible procedure
- Open procedure
- Limited tendering procedure.
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Increased transparency
The government also plans to increase transparency in public procurement. As part of the procurement reform, the UK government outlined a number of initiatives to centralise supplier data. This will make the pre-qualification process much easier for all parties involved.
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Other changes to public procurement…
As well as the UK government’s procurement reform, there are other changes that buyers need to be aware of.
It seems trivial to think about the impact on purchasing when such a huge humanitarian crisis is taking place. However, as the crisis in Ukraine continues, the impact on supply chains and Procurement Teams will increase. Therefore, it is important to harness the power of procurement wherever possible.
As a result of the crisis, it is likely that buyers will need to find new sources of supply. Both short-term and long-term procurement solutions are needed to handle this crisis – which is something buyers should prepare for.
Not only that, but public procurement operations are now focused on increasing sustainability and introducing greener processes. In fact, the UK government has pledged to stop buying from suppliers who could negatively impact their carbon reduction commitments.
It is now compulsory for suppliers in the public sector to meet selection-stage criteria that relates to carbon reduction. The pass/fail criteria will assist buyers in selecting suppliers that are committed to achieving net-zero emissions by 2050.
What does this mean for buyers?
Currently, the world of procurement is faced with many changes – and challenges. So, what does this mean for buyers?
It’s important to remember that nothing is set in stone – yet. However, buyers need to prepare for these changes nonetheless. In the past, buyers have been left to navigate these changes with minimal guidance. But with Hudson Procure on hand to help, your organisation won’t have to go it alone!
How can Hudson Procure help you prepare for the latest procurement reform?
At Hudson Procure, our procurement experts have nearly two decades of experience. No matter what kind of support you’re looking for, we can help.
If you need our help to navigate all the latest changes in public procurement, don’t hesitate to get in touch! We offer a range of services and solutions from ad-hoc support to end-to-end management of the procurement process!
Here’s an overview of what we can offer your business…
Procure Consult
With Procure Consult, we provide support with tender management and ad-hoc procurement consultancy. Our expert team will manage the full procurement process or offer assistance at any stage, as and when required.
Procure Health Check
With Procure Health Check, we’ll conduct a full review of the strategic and operational procurement processes within your organisation. We’ll identify the areas that need improvement and help you drive greater value from the procurement process.
Procure Analyse
The purpose of Procure Analyse is to conduct a high-level analysis of your spending activity. We’ll help you understand your current purchasing behaviour and highlight areas that can deliver greater value. Procure Analyse is offered as part of Procure Health Check or as a standalone service.
Procure Outsourcing
With Procure Outsourcing, we deliver a range of procurement solutions on an outsourced basis, completely bespoke to you. This can range from delivering multiple tender projects as a package to delivering the full procurement function of your organisation.
Procure Post
With Procure Post, you can share your tender on one or more of our 11 sector-specific portals. This way, you’ll increase your chances of finding the perfect supplier.
In summary
So, what changes do buyers need to be aware of? In 2020, the UK government published a Green Paper to address a planned procurement reform. This included many changes to public procurement, including streamlined processes and increased transparency.
Not only that, but the crisis in Ukraine could lead to many challenges for buyers. These include finding new suppliers and increased costs. Finally, businesses are now encouraged to focus their procurement activities on greener processes. This is part of a mission to achieve net-zero emissions by 2050.
For more information about the changes and reforms mentioned, download our quarterly Procure Insider brochure below.
Check out our other blogs for further Procurement Insights:
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