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

Financial Strategy Manager (Revenue)

The Royal Borough of Kensington & Chelsea Council
Negotiable
Bring clarity to complex decisions and help shape how we invest in our borough's future.Bring clarity to complex decisions and help shape how we inves England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Team Manager - Locality

Wakefield Council
£55,979.00, Grade 13
Wakefield Children’s Services have been rated by Ofsted as GOOD with outstanding leadership. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Safeguarding Business Support

Wakefield Council
£12,792.00 - £13,634.50, Grade 5, 18.5 hours, Temporary- 12 Months Maternity Cover
An opportunity has arisen for an Administrator to support the Integrated Front Door Service Wakefield, West Yorkshire
Recuriter: Wakefield Council

Registered Homes Manager

Durham County Council
Grade 14 £48,710 - £52,805 (Pay Award Pending) plus £2,500 recruitment/retention allowance and £3,500 market supplement. The salary with additional payments equate to an earning potential per annum of £58,805 at the top of the grade.
Salary
Recuriter: Durham County Council

Team Manager, Connected Carers

Durham County Council
Grade 14 £48,710 - £52,805 (Pay Award Pending)
Are you passionate about supporting children to remain within their family networks? Do you have the leadership skills to guide a dedicated team worki Durham
Recuriter: Durham County Council
Linkedin Banner