Inside Procurement – E(fficient) Procurement
Custom built, the PfH eProcurement marketplace will help the social housing sector gain visibility, control and compliance over spending, enabling more strategic and cost-effective purchasing decisions and reducing processing costs.
Faced with government spending cuts, there is greater pressure on housing providers to deliver more with less.
This agenda presents complex challenges for social housing procurement. Significant tensions are emerging between cost reductive efficiency gains, the ability to achieve long-term best value and the need to deliver savings – at a time when social landlords are committed to the creation of genuinely sustainable communities.
Making cuts that result in poorer quality services and outcomes for tenants will fail to deliver value for money. Any change to services should result in a net improvement in outcomes for tenants. Ultimately, efficiency saving is not about cutting front-line services, but about driving efficiencies throughout the back office. Enabling better buying, reducing paper bureaucracy and
greater collaboration all create savings.
Demand from Members for e-procurement solutions, as an effective mechanism to achieve savings and deliver the Government’s Operational Efficiency Programme, has seen a marked increase.
PfH Member Gwalia Group is a housing provider based in mid and south Wales and manages over 5,500 homes.
Procserve has enabled Gwalia to achieve the targets set within their Procurement Strategy and provide an equality of service across the organisation. Procurement is now a strategic function within the organisation and has a place at the executive boardroom table.
The solution has already delivered some significant benefits:
- Each transaction made through Procserve saves the organisation around £26;
- Every transaction goes through a central hub and makes capturing management information easier and more accurate than before;
- Central control is coupled with devolved purchasing responsibility.
Easier access to existing contracts has also enabled Gwalia to increase efficiency savings, improve contract compliance and focus front-line personnel on delivering better housing services.
Continue reading Procurement for Housing – Efficient Procurement (May 2010)
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