Magazine article Public Finance

Bulk Buying Saves the OGC £321M

Magazine article Public Finance

Bulk Buying Saves the OGC £321M

Article excerpt

The Office of Government Commerce's trading arm this week reported that it had made efficiency savings worth £321m on £2bn worth of procurement deals during 2004/05.

OGC Buying Solutions, which has managed purchasing for central government on behalf of the OGC since 2001, made most of the savings through bulk purchases undertaken on behalf of several departments. It is an encouraging sign for a government keen to promote a collaborative approach to efficiency.

Hugh Barrett, OGC BS chief executive, said: 'We have met all of our ministerial targets and in particular have made a significant contribution to the OGC's [broader] Public Service Agreement target of delivering value-for-money gains for the public sector.'

Barrett's savings target for 2004/05 was £300m. More than £lbn of the organisations purchases were made using the Government Procurement Card, introduced in 1997, which acts like a credit card to manage purchases at no extra cost to departments. GPC expenditure has led to savings of more than £168m since 1997 and £70m in 2004/05, Barratt's annual report states. …

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