As Halloween approaches, we're not just focused on ghosts and ghouls. We're also here to clear the smoke and mirrors around some common misconceptions that have been haunting the procurement world. Let's shed some light on these misunderstandings and get you up to date with the real facts.
Myth 1: Public procurement providers charge fair and proportionate fees
This is false. The fee that suppliers are charged and sometimes the fee public sector organisations pay to use a procurement consortium are not always used in public interest.
At Procurement Hub, we are part of Places for People which is a social enterprise that reinvests 100% of our profits into back into the public sector for social housing or donated directly to charity. We have already donated over £1m to charity.
Myth 2: Changes to the Procurement Act will slow down my procurement
Also, false. Although the legislative changes will require some adjustments to internal processes for public sector organisations and procurement providers, immediate action isn't required for all aspects. Some frameworks and many dynamic purchasing systems will remain compliant until 2029.
While the upcoming legislative changes will necessitate adaptations to internal processes for public sector organizations and procurement providers, immediate action isn't required for all aspects. Many frameworks and dynamic purchasing systems established prior to 27th February 2025 will remain compliant until 2029 and only requiring adjustments upon renewal.
Public sector procurement, particularly in our digital age, can be complex. While the era of paper heavy processes is thankfully fading, meticulous documentation and careful consideration of every stage are crucial to ensure robust procurement and optimal outcomes for public organisations and their communities.
For support with your internal procurement processes we have released some support on our website here.
Myth 3: Frameworks limit your Key Performance Indicators (KPIs)
Not necessarily. Some people think that you can’t set the KPIs you need to achieve for your organisation when using a framework.
However, many frameworks allow you to choose your own KPIs and social value targets to suit the needs of internal requirements. At Procurement Hub, we work closely with you to tailor your KPI reporting and ensure that they are adhered to by closely working with the contractor and monitoring performance. We can even provide regular KPI reports to show you your progress and ensure compliance.
Myth 4: You can pay less fees elsewhere
While some providers may claim lower fees, they often hide them in the main contract total.
At Procurement Hub we do not do this. There are no annual fees and we adopt a fully transparent approach. We publish all our fees clearly on our website that can be easily found on each solution page and pride ourselves on having some of the lowest fees in the market, ranging from 0.15% to 0.5%.
Procurement Hub is part of a social enterprise with no shareholders. As a public sector organisation ourself, we understand the frustrations of our members and all of our profit goes back to helping the public sector.
Don't be scared by procurement myths. With the right information, you can make informed decisions and achieve your goals. Procurement Hub is here to help you navigate the complexities of procurement and ensure you get the best value for your money.
For more information, contact our procurement experts, here.