Identifying savings opportunities is easy provided you know where to look

There is relentless pressure across the public sector to deliver cashable savings and meeting the targets gets tougher each year. CSR07 builds on the SR04 efficiency programme demanding at least 3% value for money savings per year, totalling £30 billion of annual savings by 2010-11. Delivery of the efficiency agenda is materially dependent on the ready availability of detailed information about the public sector's expenditure on goods and services. All too often the only expenditure data available is missing vital attributes, is poorly classified, is difficult to compare with others and is distributed across multiple systems. The Observatory addresses these fundamental data related issues and delivers an analytical platform designed to facilitate rapid identification of potential savings:

Analyse

• Which of your suppliers are relatively the most expensive to manage in administrative terms?
• In which categories do you have too many suppliers and might be candidates for rationalisation?
• In which categories do you have too few suppliers and might be candidates for extension?
• Which departments might benefit most from a focus on redirecting spend to suppliers with whom you have negotiated the best terms?

Collaborate

• What proportion of your spend overall is with suppliers common to at least one other public sector body?
• Which suppliers are generating the highest aggregate sales from the group you’ve chosen to analyse?

Contract

• How much of your spend by category is with suppliers with whom you do, or do not, have a contract?
• How is your spend with suppliers with whom you do, or do not, have a contract changing over time?

To arrange a meeting to discuss how implementation of the Observatory can help you to identify potential cash savings in your own organisation then please contact us.