Digital procurement solutions are helping procurement teams better control tail-end spend, creating efficiencies in both time and money and helping to meet wider public sector goals

It’s vital that local government organisations operate efficiently, making sure taxpayers’ money is spent wisely and that staff can be as productive as possible.

For those working in procurement teams, ensuring value for money is particularly important – and procurement professionals are rigidly focused on this when entering into contractual arrangements.

But not all spend is channelled through procurement, or subject to such scrutiny. Every government department will have costs that come with day-to-day expenses such as stationery, furniture or IT equipment, and these are often bought by office managers or end-users as and when required.

For procurement teams, this tail-end spend – generally for relatively low-value but high-volume items – can cause issues. Often this is with suppliers that have not been vetted and may not represent value for money or meet the corporate social responsibility goals demanded by the public sector.

Items are typically bought by individuals and claimed back through expenses, which can make it hard for procurement teams to monitor what is being spent and whether there are opportunities for efficiencies or to eliminate spend altogether. This can also cause headaches for finance teams, which can struggle to reconcile payments and have to deal with reimbursing staff.

Digital procurement solutions, though, are helping procurement professionals get on top of this tail-end spend, and this is creating opportunities for the function as a whole to demonstrate the value it can bring to government departments.

Amazon Business provides procurement teams with a single location for all tail-end spend. They can control who can buy items and set limits on spend, beyond which further authorisation can be put in place. Employees can then buy items using company credit cards or on account, with accounts teams receiving an invoice at the end of the month.

Adopting such a set-up can reduce maverick spending, where employees buy items on their own time and with their own money, which they then reclaim through expenses. Employees are already familiar with the system from their personal lives: they are keen to use it, and know they will receive items promptly through Amazon’s delivery network. Making it easy for them to find what they need also generates time savings, which can then be spent on other projects.

Procurement teams have much more control over where money is spent and can mandate the use of particular types of supplier, such as those from a local area or which have certain CSR or sustainability certifications. This can help the function meet wider departmental goals in supporting local businesses and sustainability. The reporting capability, meanwhile, allows them to track savings made and demonstrate progress towards other goals over time.

Importantly, teams also have access to information on just what has been spent and in which categories. This can help them assess where they may be overspending, and identify any possible waste, as well as opportunities to consolidate spend with fewer suppliers. They, too, benefit from time savings, which can be reinvested in more strategic initiatives.

One organisation that has benefited from partnering with Amazon Business is Durham County Council. Previously the council had a haphazard approach to tail-end spend, resulting in high levels of maverick spend and little in the way of either quality assurance or oversight. It also took up a lot of time for those who needed items, creating further inefficiencies.

Using Amazon Business has resulted in a more streamlined experience for users and better reporting, which has also seen the council make better use of local businesses as part of its Durham County Pound initiative. “This simple yet powerful change ensured money stayed within the community, supported local job creation, and reduced carbon emissions by minimising transport distances,” says chief procurement officer Richard Carroll.

To find out more about how Amazon Business could help your government department or public sector organisation get on top of tail-end spend, visit business.amazon.co.uk/