No more 'them and us'
Improving supplier relationships in the public sector
The United Kingdom has the world's second largest market for government suppliers after the United States. Many public bodies now rely on third parties to deliver core public services. As the configuration of supply chain has changed, however, public bodies have not always adapted their own capabilities, cultures and processes to reflect their new role.
This mismatch is gradually being addressed through programmes such as Professional Skills for Government. The introduction of significant public finance constraints after 2010 will increase the pressure to accelerate this process. To ensure public bodies are fit for purpose as their budgets contract, it is now critical that managers act swiftly to refresh their commercial and procurement capabilities and modernise their approach to dealing with suppliers across their business areas.
This report describes these capabilities at a high level, and identifies common areas where public bodies can take action to improve the way they manage suppliers.