Time for a culture change towards SME procurement
Unless you evolve what you do and how you do it the same results will ensue – something we’ve all heard many times before.
Under pressure to make savings, Government buyers default to aggregation in an attempt to ‘un-lock value’. Does this work? Is the reality not higher market barriers that protect and reinforce the incumbency – the very topic that Peto presented to the Health Care Supplies Association.
Removing these barriers and allowing SMEs and new entrants to disrupt the status-quo is the fundamental key to creating balanced Supply Markets – as noted in a recent Guardian article. In turn, they deliver more rapid innovation and greater competitive tension – both of which are critical if Government is to achieve sustained value.
There is one more major barrier to achieving all of this. Whilst Government pressures buyers’ for short term price savings – current behaviours are reinforced. We must help Government understand broader value in much less complex ways. Then we'll see SMEs become a greater force within Government Supply Markets - and that can only be a good thing for all of us.