Abstracts: July 12th, 2006

This study of purchasing practice in leading organizations from PA Consulting Group reveals that most have focused on price leverage and overhead cost reduction, but only price leverage has actually delivered significant benefit. The survey included central government agencies; health authorities and local government.A key finding is that organisational constraints have meant that most are only half way along the journey to best practice and have realised less than one quarter of the potential benefits.

The study concluded that in order to achieve a genuine procurement transformation and realise the full value of procurement improvement, organisations must invest in procurement capability through restructuring the procurement function to enhance its influence; re-skilling the staff to extend their capability; rotating them through the organization to increase their awareness; and recruiting to fill any remaining gaps.

The survey is available from Linda Pearse – Tel: 01763 267137 or e-mail: linda.pearse@paconsulting.com