Sir Philip Green, the billionaire boss of UK retail group Arcadia and Top Shop, has this week announced the results of his study in to UK government procurement. The conclusions, he says are shocking. His main conclusion is that the UK government is failing to take advantage of its position as a strong buyer with a top notch credit rating.
Sir Philip said that no business could survive the level of money that was wasted from the GBP 191 billion (USD 305 billion) of spending he reviewed.
The report suggests that billions could be saved by doing simple things like managing supplier contracts and spending more diligently. “The process is shocking; there is no reporting, there is no accountability”, says Sir Philip.
So is this an issue of better contract management or an issue of management and the fostering of a culture oversight?
In reality, a successful outcome will involve a bit of both. Contract Management software solutions, like Dolphin Contract Manager, can help to provide greater control over contracted commitments and spending by allowing business managers and procurement professionals to keep track of terms and conditions that were negotiated and agreed in the contract and then capturing performance related data (like obligations tracking, KPI management as well as invoicing and deliverables tracking) against expected behaviour.