Laura Sharman 21 September 2018

Councils have 'dangerous dependence' on a handful of suppliers

Councils are concentrating more than half their total spend with their top five suppliers, new research has revealed.

A freedom of information request by Ivalua found councils in England spent £52.5m with their top five suppliers in the past year, putting public services at risk in the event of a company collapsing.

Despite one in five councils previously working with Carillion, the research found that just one council plans to increase the number of suppliers used. In fact, 21% of councils announced plans to decrease the number of suppliers used in the next 12 months.

Alex Saric, smart procurement expert at Ivalua, said: 'A level of supplier consolidation makes sense. Consolidating spend in specific categories with a handful of suppliers supports volume-based discounts and the ability to better monitor supplier performance and strengthen relationships.

'However, it’s clear that many councils have a dangerous dependence on a handful of strategic suppliers, increasing the risk of being left in limbo and scrambling to backfill contracts and onboard new suppliers.'

SIGN UP
For your free daily news bulletin
Highways jobs

Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
Are you an experienced, motivated leader with a passion for improving outcomes for children and young people? We’re looking for someone who can inspir Durham
Recuriter: Durham County Council

Social Worker, Connecting Families Team

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £44,075 - £48,226 (Post-Progression)
Connecting families are a team within the Children in Care service in Durham. The team support families of children who are subject to a Section 31 Ca Durham
Recuriter: Durham County Council

Human Resources Officer Advice and Support

Durham County Council
£35,412 to £39,152 p.a. (Grade 9)
  Do you want a new challenge?  An opportunity to develop your career in HR or try something new? If so, come and join our team. The post is full tim Spennymoor
Recuriter: Durham County Council

Support Officer

Durham County Council
Grade 6 £28,142 - £31,022
WHAT IS INVOLVED?   Do you want a role where your organisation skills make a real difference in local communities? Join our Newly remodelled Local Net Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £4,800 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council
Linkedin Banner