How the neutral vendor model is being recognised as the answer to the public sector’s procurement challenges around transparency, data and value for money.
In December 2023, the public accounts committee released a concerning (but not surprising) report highlighting the government’s (lack of) ability to prove value for money when it comes to public sector procurement.
Not only was the data shallow or incomplete, but the report also emphasised the importance of analysing competitive trends in markets.
For those in public sector procurement, these issues are not new. In fact, the issue is a lot more nuanced as there are variations across departments, categories and the different systems and frameworks that are used. Even if the data was complete, only judging the value of the contracts and the method of procurement (which is what tends to happen) will only partially identify the full value of what can be achieved. It needs to demonstrate the savings, the type of competition that was run and what happens during delivery.
That’s the beauty of the neutral vendor model. It’s simplicity and ease of accessing the right kind of data in real-time at any stage of the contract and across categories. Having insight, access and control of the entire procurement ecosystem is essential to transformational public sector procurement. It is invaluable.
One of the advantages of the neutral vendor model is that all procurement goes through the one platform, so it is all measurable and uses real data, not historical data. This allows real-time access to a range of critical data from the procurement ecosystem, including:
- Supply Chain: What suppliers are being used, what type, where and the size of company – Helping the public sector meet its targets of working with the SME community and diverse suppliers.
- Spend Data: By department, stakeholders, categories and suppliers. Including budgets, savings against budgets and spend to data.
- Performance Data: By supplier and SoW.
- Social Value Impact Data: Commitments and delivered.
- Procurement Data: Competitions vs. direct awards, evaluation criteria and timescales.
Constellia data shows that in 2023, we helped the public sector, on average, save up to 21% savings on budget. It’s something we can evidence at the push of a few buttons.
The data that the public accounts committee uses is derived from different systems and old financial data. It, therefore, is perhaps unfair to compare the two. However, for individual organisations or collaborative groups, there is no question that the neutral vendor solution can provide absolute and real-time control and visibility of spend.
Get in touch to find out how our Neutral Vendor model can help your organisation have complete data transparency, spend control and drive value for money.
Contact us today at email@example.com or call on 0330 320 8020.
Rob Levene, CEO, Constellia