UK procurement leaders face pain points ranging from rising costs to geopolitical uncertainty. The ability to be agile and adaptable is separating successful organisations from those in danger of failing.
“More than ever, CPOs require agile procurement processes and enabling systems to adapt to changing market conditions,” says Tom Whittaker, director at independent UK law firm Burges Salmon.
However, the current regulatory framework surrounding procurement in the Uk creates headwinds for procurement teams. “More than ever, CPOs require agile procurement processes and enabling systems to adapt to changing market conditions,” says Whittaker. According to him, this is something the Procurement Act 2023 seeks to facilitate. The Act will ‘go live’ in October this year and will likely have a significant impact on UK procurement.
Will the Procurement Act increase agility for UK organisations?
The Procurement Act 2023 aims to reshape the regulatory landscape underpinning the UK’s procurement sector in several major ways. These range from reworking supplier selection to changing the ways that tendering works. The aim, reportedly, is to open up public procurement to new entrants such as small businesses and social enterprises. Ideally, this would allow them to compete for and win more public contracts.
According to Whittaker, “A key challenge for CPOs under the existing regime is the ability to design agile procurements that can adapt to changing stakeholder requirements.” He admits that the Procurement Act will still maintain some limitations. However, Whittaker notes that the new legislation will provide a clear framework for such changes during the procurement process.
“Conditions of participation (previously selection criteria), tender requirements and award criteria can all be amended or refined at various points under the new regime,” he says. “There will be significantly more scope under the new regime to design a procurement process that fits the specific nature and scope of an organisation’s requirements.” In essence, companies have more leeway to adapt their tender process as circumstances shange around them.
However, while he advises a more agile approach and amending selection criteria in the face of changing circumstances, Whittaker says the process “must always be managed with care.” He argues that “the value this can potentially deliver will depend significantly on the skills and understanding of the procurement professionals responsible for delivering the change.”
