Progressing procurement practice through spend analysis

In 2013, Preston City Council (UK) and six other anchor institutions embarked on a project to identify how their wealth could be understood and harnessed more effectively for the benefit of the local economy. An element of wealth that anchors institutions can influence their procurement spend. Central to the work in Preston has been the analysis of these institutions’ procurement (1 billion euros), to understand where that spend goes geographically and on which types of business type, and what happens to it once it reaches suppliers. The anchor institutions then used the evidence gathered to inform how they undertake procurement. Some institutions have revisited the spend analysis: evidence suggests their spend has increased in the local economy and with small to medium-sized enterprises. The work demonstrates the importance of using evidence to shape policy change and the role of procurement in addressing challenges.