When it comes to government procurement, it’s clear that councils are increasingly being forced to do more with less. From rate-capping measures introduced in the 2010s, the formation of the Local Government Act 2020, to economic instability caused by soaring inflation, climate change, and a challenging global environment.  

Whilst this might seem like the odds are stacked against councils, it’s not all doom and gloom. Taking a proactive approach to procurement can save councils time, money, and avoid any unnecessary headaches. 

Whilst most councils have a well-defined, compliance-heavy procurement and risk management processes in place, the complex set of challenges they’re dealing with continually threaten to shake up their contracts, finances and supply chains. This calls for a more thorough, holistic procurement approach. 

This approach will equip council’s procurement function with the tools, knowledge, and capabilities to meet ongoing challenges head-on and accelerate positive transformation through even the most uncertain of scenarios. 

Below are four ways local government can change their approach to procurement this year: 

1. Prioritise risk management at all stages of the contract lifecycle

Risks are present in all areas of the procurement cycle. Identifying them, analysing them, and regularly monitoring them means the procurement team won’t be caught unaware by their presence, and will be well-equipped to treat them. Care should also be taken to strengthen risk management processes and refine or broaden them where needed. 

This doesn’t have to mean additional layers of paperwork, either. An operational contract management system has the capability to step staff through required processes, monitor key dates and trigger points, and flag risks as they approach. Rather than wading through spreadsheets to identify a multitude of risks through the contract lifecycle, a capable system can do this for you, even flagging salient events ahead of time.

2. Remember that pretty dashboards aren’t everything

Clean dashboards and colourful interfaces can certainly facilitate a user-friendly experience. But it’s easy to be blinded by the lights of big promises, and if the solution requires numerous add-ons just so the procurement team can, for example, post a tender, manage important supplier documents centrally, or configure business-specific workflow processes to guide users through procurement activities, it will fall short at facilitating a truly comprehensive experience. 

Instead, councils should analyse their needs and carefully select a solution that meets all requirements whilst facilitating implementation with successful change management. 

Taking a step back to look at the sourcing stage, once the decision is made to implement a new system, procurement teams are faced with an overwhelming array of choice. How can councils be sure that their new software will serve the needs of everyone involved – from the procurement teams using the software daily and the suppliers regularly accessing the portal, to the less-frequent users logging in to quickly send-off quotes or put together contracts? The answer is just below! 

3. Choose your procurement software wisely

There are two elements councils should prioritise: 

– The end-to-end factor 

– A trusted reputation 

End-to-end solutions are designed to address all (or most) procurement needs within one centralised system. Their cost-effective nature and ability to integrate seamlessly with supply chains and existing ERP/EDMS systems make them a huge advantage not only for procurement teams, but for the councils themselves, their broader stakeholders, and community members. 

Importantly, they provide a clear picture of the procurement cycle from sourcing and contracting, through to the delivery of goods and services and capital projects. In doing so they break down silos, are significantly cost-effective, and boost compliance, probity, and accountability within the procurement function. 

Making the switch from spreadsheets or disconnected point solutions to end-to-end software isn’t a simple task, however. Successful implementation, and effective change management so the solution is used as it should be, requires the support of a deft and experienced pair of hands, and endorsement and support at the director level. 

If vendors are honest about what they can deliver and have a trusted reputation for delivering on their promises, councils will save a lot of time, money, and effort in the long run. The solution may fulfil most requirements, but not every single one – and that’s perfectly fine. 

If council do their due diligence thoroughly, they will enter the implementation process certain of which requirements are being fulfilled, and which aren’t. This level of clarity can empower local government to use the solution effectively. 

To fully harness a solution’s potential, councils should step outside their comfort zones. It is important to explore the possibilities the solution offers beyond those initially identified during the implementation phase.

4. Use procurement software wisely

End-to-end solutions cover many purposes, and there are often diamonds to be found outside of the key functions used on a daily basis. New tools, features and enhancements are regularly added to software, which are designed to streamline operational effectiveness and improve knowledge management across the procurement function and beyond. 

Furthermore, councils should be regularly engaging with their selected vendor. Attending training webinars, signing up to client newsletters, and chatting to account managers about the software regularly, are all ways users can expand their product knowledge and capability. 

By utilising the above four tips, councils can be empowered to do more with less much easier, for as long as external factors demand.