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The Gap Partnership

eProcurement 'key' to cutting deficit

Procurement negotiation departments should turn to IT to reduce costs

25 June 2010

The introduction of procurement technologies could help cut the UK's budget deficit, according to new research.

Durham University and Wax Digital have published their Doing Battle with the Deficit report, which claims government procurement departments should use more technology to reduce costs.

Despite 98 per cent of public sector offices expecting cuts from this week's Budget, just six per cent are able to cope with them.

Only 25 per cent of these have purchasing processes that are fully automated - a method which reduces costs.

Improving the use of technology could not only improve spending efficiency but it could also help advance procurement negotiations.

Laura Watson, deputy director of procurement, Durham University, claimed getting the right prices for goods and services was more vital than ever.

She said: "As this research shows, purchasing professionals are ready to lead the fight and drive increased value from the purchasing of resources required to run their organisations effectively.

"Maintaining front line services at a premium despite back office spending cuts requires creative thinking and new approaches."

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