Institute claims Government's Efficiency Review is misguided

The Chartered Institute of Purchasing and Supply (CIPS) claims the Government’s Efficiency Review is misguided, and reducing headcount alone will not address inefficiencies in the public sector.

The review is due to be released as part of the Government's Spending Review in a couple of week's time. According to leaks, it could result in the loss of 80,000 back office and procurement jobs, as well as a reduction in the number of local authority purchasers from 400 to 10.

The CIPS, which represents purchasing and supply professionals, said cuts would not get to the heart of public sector inefficiency.

The institute claims that in the short-term, inefficient procurement can lead to delays in completing projects, and the waste of taxpayers' money.

In the long-term, failure to take a strategic approach to purchasing poses a number of threats, including the risk of relying on a handful of suppliers for key commodities, according to the CIPS.

Ken James, CEO of the CIPS, said: "Too often, purchasing is regarded as a transactional activity and not as a long-term strategic activity which goes to the heart of the business.

"Government needs to work with us to broaden understanding and instil best practice procurement across the sector."

The institute recommends:

- A full audit of the skills of practicing public sector purchasers

- A defined approach to training and skills development

- CIPS or CIPS-accredited qualifications to become compulsory for both new recruits and existing staff

- Greater involvement for CIPS in advising Government on strategic purchasing

By Michael Millar