Procurement
professionals have ballooned over the last decade and the headwinds of change do not look set to calm. From unexpected sourcing needs driven by the COVID-19 pandemic to a steep decline in pharmaceutical clinical trial populations caused by the Russian invasion of the Ukraine (both significant contributors to clinical trials for several years),3
to Houthi
attacks on vessels transporting good on the Red Sea, the global supply chain has been rocked repeatedly. As the latest shift in the geopolitical environment is set into motion, changing the logic of free markets and redrawing the global supply chain map with concepts such as nearshoring and friendshoring, the profession is set to face yet another critical challenge. Facing these obstacles, while adapting to the
new model, will require not only that commercial procurement teams fully understand the new legislation, supported by the full buy-in of their leadership teams, but also that they carefully manage the supply chain risks posed by attracting new players to the marketplace (smaller, younger businesses for example). Younger businesses are at a higher risk of closing, for example, while smaller businesses may struggle to deliver on large contracts. Specifically, 20% of small businesses in the UK are reported to fail in their first year, and 60% fail within the first three years.4
An efficient management of
data can help identify businesses with a less solid foundation from poor financial results and reports early on in the process. Efficient real-time information retrieval and analysis, enabled by automation can support buyers in being more efficient by mitigating supply chain challenges with better informed decision-making. Due diligence in vetting suppliers against multiple criteria can be streamlined with tools that help rapidly interpret multiple data sources which can range from certifications to financial reports and even news articles. As the bill placed increased importance on monitoring supplier performance and ethical behaviour during the lifecycle of a
contract, technology can also prove useful to automatically create periodic reports, pulling up real-time data and automating requests for additional information. Tracking the performance and fulfilment of contractual obligations for thousands of contracts and suppliers can be a complex and time-consuming task, but new AI and MLL models are able to streamline these processes ensuring they are fulfilled regularly and without the risk of human error. Finally, compliance will also rest on a more joined up approach both from a technological perspective and in terms of interdepartmental collaboration. To reap the benefits of the new legislation without disrupting their existing Procurement and Supply Cycles, commercial procurement will need to be able to access data from a range of systems to, for example, verify for example whether there have been complaints concerning the cleaning services procured, whether the handsets provided to nursing staff suitably withstand sterilisation or whether parking lots have been cleared of scrap landscaping materials. This data may be siloed in systems that do not “talk the same language” as that of other departments, so overcoming this technical hurdle will be critical. Similarly, whereas within the previous
framework, each department would focus on a single phase of the Procurement Cycle with its own specific human resources, the new mindset requires an integrated end-to-end approach. Contract managers, finance teams, service commissioners, legal advisers and reporting teams will need to be consulted at each stage to ensure that evaluations meet the social value and technical criteria. Procurement solutions that enable a cohesive approach to the whole contract lifecycle have already been specifically developed for the Public Sector and can offer end-to end-visibility into all elements of the new evaluation process ensuring NHS bodies are supporting reform whilst delivering to the best of their ability to the public.
CSJ
References 1.
Gov.uk, The Procurement Act 2023: A short guide for suppliers,
https://www.gov.uk/ government/publications/procurement-act- 2023-short-guides/the-procurement-act-2023- a-short-guide-for-suppliers-html accessed 13.02.2025
2. NHS England, Provider Selection Regime frequently asked questions, https://
www.england.nhs.uk/commissioning/ how-commissioning-is-changing/ nhs-provider-selection-regime/ provider-selection-regime-frequently- asked-questions/#how-does-the-provider- selection-regime-psr-interact-with-the-
46
www.clinicalservicesjournal.com I April 2025
procurement-act-2023, last accessed 12.02.2025
3. Biopharma Dive, Ukraine was pharma’s clinical trial ‘darling.’ As war drags on, will the industry return? , 16 April 2024,https://www.
biopharmadive.com/news/ukraine-pharma- clinical-trials-war-parexel-immunic/713701/
4. UK Money, UK Business Death Rate https://
www.ukmoney.net/how-many-new- businesses-fail/#:~:text=20%25%20of%20 small%20businesses%20in,the%20North%20 West%20at%2010.6%25, last accessed 13.02.2025
About the author
Mark Roberts is an experienced senior executive whose track record specifically stands out for the transformation of procurement processes in complex organisations in the Public and Private Sector. Notably, Mark held the role of Commercial Director for the Metropolitan Police Service in London and was previously the Commercial Continuous Improvement Director for the Government Commercial Function. Through these roles, Mark has formed
an extensive and up-to-date understanding of processes, challenges and objectives for public sector procurement in both central departments and the wider Public Sector. His award-winning track record covers both the identification and application of innovative technologies to deliver substantial benefits to both private and public sector organisations, as well as the design and implementation of new operating models in organisations internationally. Within Jaggaer, he oversees UK Public Sector
strategy in Central and Local Government, consolidating Jaggaer’s long-term commitment to serving the UK public sector with award- winning insights and expertise to help it effectively leverage the potential of critical technological tools.
Tyler Olson -
stock.adobe.com
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