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

Senior Practitioner - Children in Care - North Essex

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Children in Care - North EssexPermanent, Full Time£48,205 to £57,988 Per AnnumLocation
Recuriter: Essex County Council

Coroners Coordinator

Essex County Council
£25959.0000 - £26632.0000 per annum
Coroners CoordinatorPermanent, Full Time£25,959 to £26,632 per annum Location
Recuriter: Essex County Council

Adults Social Worker - Discharge to Assess

Essex County Council
£38487 - £51834 per annum
Interviews will be held in person at Rowan House, Colchester in late July 2026.This advert is open to Experienced Qualified Social Worker's About Our England, Essex, Colchester
Recuriter: Essex County Council

Senior Organisational Development Adviser

London Borough of Richmond upon Thames and London Borough of Wandsworth
43545 - 55992
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

School Crossing Patroller

London Borough of Richmond upon Thames and London Borough of Wandsworth
Pro Rata Salary - £5353,77
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner