Why Auctions are Trumping Negotiation when it comes to Strategic Sourcing

The art of negotiation has existed for millennia. In more recent years it has evolved into a number of techniques used by the respective contracting parties, as they endeavour to have full clarity; re the range of possible outcomes, and their walk-away positions/ best alternative to a negotiated agreement. As with poker, negotiating strategies can sometimes involve feigning a position … Read More

Why Driving Innovation has Become Procurement’s Top Priority

The research paper from Patrick Connaughton and Christopher S. Sawchuk ‘The CPO Agenda: Procurement’s Key Issues in 2014’* gives a good insight into the shift in focus among CPOs towards increasingly embracing a more innovative approach to procurement. In the paper, the authors describe how innovation-based growth has become increasingly important, particularly in the context of a business environment that continues … Read More

Key Trends in Procurement

Carlos Alvarenga of Ernst & Young recently wrote a piece for Procurement Leaders outlining his vision of what procurement will look like in 2025 in the first installment of a series of posts. In this article we lay out our predictions for how strategic thinking will change as we move towards 2020, and how sourcing will unleash much greater efficiencies … Read More

Lessons for Procurement Professionals from the Lean Startup

Large enterprises need to adapt more quickly to a faster paced world. We believe that one way to achieve this is to embrace tactics employed by startups that face similar levels of uncertainty, with the Lean Startup approach representing an excellent test bed. The Lean Startup methodology is an approach to building businesses that has transformed how startups are perceived. … Read More

Resolving the SME Public Procurement Conundrum

It was interesting to listen to Sara Murray from Buddi on BBC 4’s flagship Today programme this morning (March 14th). Ms Murray described some of the difficulties she had in a recent procurement engagement with the MOJ. She was particularly critical of the risk aversion of the procurement professionals she was dealing with in terms of their willingness to procure … Read More

How Market Design Can Help Drive Savings in Procurement

The concept of market design has received increased attention in recent years, primarily due to Alvin Roth winning a Nobel prize in Economics in 2012 for research in this area. Since then it’s application is gradually beginning to appear in a raft of different contexts. As this article by Alan Gleeson describes, the exciting news for those in procurement, is … Read More

How SME’s can win more Government Contracts

The importance of increasing the numbers of SME’s supplying to the UK government is of critical strategic importance, yet in practise the numbers winning government contracts remains small. This article explores why this is and what can be done to increase the numbers of smaller businesses winning contracts. Francis Maude MP has an aspiration that they “ would deliver 25% … Read More

Rational Bidding in eAuctions

Auction technology providers have a duty of care to buyers and their bidders to ensure that Auctions do not encourage irrational bidding that could lead to contract failure. We discuss some design issues that need to be considered during such There’s a famous result in Economics called the ‘Revenue Equivalence Theorem’ that states that the expected result across various types … Read More

Looking for Keelvar on G-Cloud?

Government Procurement Service (GPS) is part of the Efficiency & Reform Group in the Cabinet Office, connecting policy with delivery. A key priority for GPS is to provide procurement savings across the public sector in the U.K. and one main initiative supporting this aim is the CloudStore which was launched in 2012. While the chief architects, Chris Chant and Denise … Read More

To aggregate, or not to aggregate, that is the question

As more and more budgets come under pressure in the public sector, those procuring goods and services are increasingly looking at novel ways to save money. The challenge is the same across the U.K. – ‘can we get more for less?’. A starting point for many, is looking to derive savings via more efficient procurement. However, this is easier said … Read More