In every crisis of the last two years, buying has shown how much it can do to balance the economy and society. At Scottish Procurement, a government agency that supports nationwide procurement, the Response, Reset, Restart and Recover program puts the industry at the center of its efforts to advance national interests.
“In a climate of ever-increasing complexity and uncertainty and ever-decreasing budgets, we must not allow ourselves to drown in the current issues, instead keeping an eye on the future, longer-term vision and the roadmap to get there,” says Nikki Archer, Deputy Director and Head of Purchasing and Business Policy and Strategy.
“Although the four Rs approach was developed by our economic colleagues – in procurement, we’ve played our part by being innovative in the way we support the response and handling of the pandemic.”
The Scottish Government recognizes public procurement as a key lever for economic and community well-being, so this approach is in line with the National Exhibition Framework, which forms the basis of exhibition agreements between the Government and supply agencies.
The Group has introduced a long-term bidding obligation for Scottish public authorities under the Public Procurement Reform (Scotland) Act 2014 and has asked them to:
The law also requires public authorities to publish a public procurement business strategy outlining how their performance will yield these results, and to publish progress in the annual public procurement report. The results were then analyzed to determine the impact of procurement on the broader topic of economic well-being.
The authority also worked on a standard national reporting template for local authorities in a way that consolidates purchasing costs as a factor for positive change. “Policy and guidance is great,” says Archer, “but our buyers benefit from point-of-use tools to enable them to do their jobs. So we’ve collaboratively produced a suite of national tools, templates, best practice guidance, case studies and training to help them and their organizations.”
The organization aims to create real change, support sustainable spending, and work in a way that empowers budget holders. Skills are also high on the agenda, such as creating better jobs.
Scottish Procurement also works with economic development and business partners to understand what corporate investment and procurement have. This will ensure that suppliers and supply chains are able to respond when they are ready to purchase.
“We’re deliberately homing in on areas linked to boosting our response to the climate emergency,” claims Archer. “Internally, we’re working cross-functionally to influence more of a joined up, systems-thinking approach to our shared ambitions on driving a green and inclusive economic recovery.
“So, for example, how can we embed conditionality within corporate investment decisions, identifying what good looks like in respect to critical outcomes – with these flowing through all subsequent projects and funding.”
Through this approach, procurement is able to address social issues while serving specific business purposes. It emphasizes the role that this function can play, especially in using the advice of network specialists, to provide targeted and effective strategies.
By actively seeking opportunities to maximize the impact of purchasing socio-economic value and inclusive renewal, the procurement industry hopes to empower a new generation of socially conscious buyers for real and lasting change.