Policy Hub
A report by the National Audit Office (Improving procurement: progress by the Office of Government Commerce in improving departments capability to procure cost-effectively (HC 361 2003-2004)) published on 12 March 2004, confirms that by 31 March 2003 departments had generated savings of £1.6 billion which exceeds the OGC's target of '1 billion. However, departments will need to do more if OGC is to meet the more ambitious target of an additional 3 billion in savings by 31 March 2006.
The report found that departments and agencies need to improve their capability in seven key areas: raising commercial awareness; having better and more up-to-date management information, particularly on current market prices; increasing joint purchasing between departments; more proactive management of suppliers; managing the risk of relying on too small a number of suppliers for key commodities; developing procurement expertise; and better targeting of value for money improvements.
The report can be viewed on the NAO website