Select Committee on Public Accounts Thirty-Third Report

2   Increasing' market share

11.' share of central government total procurement spending is approximately 5%. If categories outside the areas covered by' products and services are excluded,' share makes up 10% of expenditure.[28] In the wider public sector (local government, health, education and emergency services),' share of total procurement spending is less than one per cent.[29]

12. Customers of ranked the need to improve customer consultation when letting new framework agreements as a key improvement that would make them use more.[30] 29% ranked more consultation in their top three improvements.[31] While 41% of central government departments considered that they were consulted enough on new framework agreements and managed services, only 15 to 20% of the other organisations (non-ministerial government departments, executive agencies, non-departmental public bodies and wider public sector organisations) felt this to be the case (Figure 2).[32]

Source: National Audit Office

13. has established a Customer Steering Group to increase consultation with customers. The representation on this group is primarily from central government departments with only limited involvement of executive agencies and non-departmental public bodies.[33]

14. Despite an improvement programme which is in its third phase, website remains to be fully exploited to increase customer take up. 29% of customers ranked the website in their top three improvements that would make them use more.[34]

15. Customers are also not consulted enough by about the performance of suppliers on its framework agreements and managed services.[35] 57% of central government organisations and 68% of organisations in the wider public sector have never been asked by about the performance of its suppliers.[36] More than four fifths of customers, both in central government and the wider public sector, consider the level of consultation on the performance of suppliers to be insufficient.[37]

16. Customers who do not currently use highlighted the need to make it easier to get in contact with and to be kept better informed about current products and offers.[38] 21% of potential customers identified clearer contact information as the one action that would make them use with 19% identifying more marketing information.[39]

17. The primary method by which monitors the performance of its suppliers is through a red, amber, green rating system. Suppliers are either unaware of the' rating system or do not consider that it helps them understand their performance and how to improve it.[40] The NHS Purchasing and Supply Agency use key performance indicators, together with sales volume data, to produce league tables to compare performance across suppliers on the same framework agreement. The league tables are discussed with suppliers to identify reasons for good or poor performance.[41]

28   C&AG's Report, para 2.33 Back

29   Q12; C&AG's Report, para 2.33  Back

30   Qq13-14 Back

31   C&AG's Report, Figure 19, page 24 Back

32   Qq 17, 67, 77-78 Back

33   C&AG's Report, para 2.40 Back

34   C&AG's Report, para 2.41 Back

35   Q 129 Back

36   C&AG's Report, para 2.29 Back

37   C&AG's Report, para 2.29 Back

38   C&AG's Report, Figure 21, page 26 Back

39   Qq 30-33; Qq 114-115 Back

40   C&AG's Report, para 2.30 Back

41   C&AG's Report, case example 3, page 22 Back

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