The UK Foreign and Commonwealth Office (FCO) has a global procurement spend of £730 million. Managing this spend and generating savings was challenging, because a high degree of budgetary and decision-making control had been devolved to front-line managers, and over half of the FCO’s procurement expenditure is managed by overseas posts. The FCO asked PA to conduct a strategic review of its global procurement operation and implement a programme to deliver savings.
PA identified and implemented a series of quick wins, then led an opportunity planning workshop to pinpoint further savings. As well as project management guidance, we gave hands-on support in other areas, providing a savings and progress tracking toolkit, expert advice on analytical techniques and links to potential collaborating parties across the public sector.
PA substantially exceeded the FCO’s target of £3 million savings in the first year with finance-approved savings of £8.1 million. The project is on track to deliver savings worth £11 million by 2011.
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