More procurement outsourcing news; DHL, Knowsley Council

by Peter Smith on June 1, 2010

I’ve predicted in a number of occasions now that procurement outsourcing in the public sector will take off over the next few years for a number of reasons.

I’m less sure about the private sector, although the pace of technology change does make me think that some organisations will be tempted to go down the outsourcing route rather than invest to stay current with what technology can now add to procurement performance.

Anyway, two more straws in the OJEU advert from Knowsley Council (acting I believe for a wider group of councils) looking for a supplier to act as a ‘vendor neutral master vendor’ across all consulting spend.  The provider will act as the principal with the council and hence (my understanding) will not be bound by all the tedious EU regs, having to publish contracts etc.  Creative thinking from Knowsley – I’ve seen this happening in other spend categories, but not before in consulting.

Secondly, DHL are making a big push into outsourcing, targeting both private and public sector. They  have a very large contract to use a a beachhead; the NHS Logistics service.  I think if you spoke to 10 different people in Health procurement you would get 10 different views about how successful DHL have been over the 5 years or so they’ve been running the service, but I expect them to be a pretty vigorous player in the market.

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