Driving efficiency through procurement in local government reorganisation

• For procurement leaders, this period is uniquely challenging. You must maintain service continuity while unpicking years of legacy contracts, navigating multiple governance models, and identifying opportunities for savings - all under intense public scrutiny. When approached strategically, procurement can be one of the most powerful levers for delivering a smooth, compliant and financially sustainable transition.

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• Why procurement is central to successful reorganisation

• In any merger or shift to a unitary model, procurement sits at the crossroads of operational necessity and strategic redesign. The new authority inevitably inherits a patchwork of contracts with different terms, lengths, and risk profiles. It also takes on varied supplier relationships and performance standards, as well as differing approaches to social value, commissioning, and contract management.

  Left unaddressed, this fragmentation can lead to inconsistent pricing, unmanaged risks, and costly renewals by default.

  With a coordinated approach, reorganisation becomes a rare opportunity to reset and harmonise the entire contract landscape. It creates space to consolidate spend and make full use of increased purchasing power, allowing the organisation to rebuild procurement processes around best practice and future needs, while establishing a unified approach to social value and local supplier engagement.
  In short, procurement becomes a strategic enabler of both savings and service improvement, rather than a back-office function.

The real challenges procurement teams face

Every reorganisation presents similar pressure points, and most authorities underestimate them.

Lack of contract visibility
Contracts are often stored across multiple systems, spreadsheets, and service areas, which leads to a lack of consistent visibility. This can result in untracked renewals slipping through the cracks, legacy arrangements that no one actively manages or owns, and multiple versions of the same contract circulating across merging councils. Without a clear and reliable baseline, making informed strategic decisions becomes extremely difficult.

Cultural and procedural differences
Each council has its own way of working. Some prioritise strict framework compliance, others favour flexibility and local supplier engagement. Aligning these philosophies requires sensitive leadership and clear principles.

Capacity and capability strain
When it comes to local government reorganisation, internal procurement teams are often pulled in two directions - needing to maintain day to day operations while also delivering a major transformation programme. This dual pressure can create capacity and capability strain, which is why many authorities choose to supplement their internal teams with specialist procurement support, interim category expertise, or fully managed services. Bringing in this external capability helps keep business as usual activity steady while enabling the organisation to accelerate delivery and integration.

Opportunities to drive smarter, more efficient procurement

To unlock the full benefits of reorganisation, procurement leaders should focus on these core areas:

Establishing a single source of truth
Start with a forensic contract audit to:

• Build a complete inventory of all third party spend

• Identify duplication and immediate savings opportunities

• Highlight compliance risks and upcoming expiry dates.

Standardising procurement policies, thresholds, and templates across the new authority reduces administrative burden, supports compliance with public procurement regulations, and gives suppliers a clearer, more consistent experience.

Embedding collaboration and category management
Reorganisation offers the scale needed to create a mature category management model. By grouping spend into defined categories, and engaging service leads early, councils can:

• Conduct deeper market analysis

• Improve specifications

• Drive down total cost of ownership

• Achieve more consistent quality for residents.

This collaborative approach also builds trust across the new organisation at a time when service areas may be feeling unsettled.

Using technology and data as enablers
Digital tools don’t need to be complex or costly to deliver value. Introducing or optimising e procurement and contract management systems can provide:

• Real time spend visibility

• Automated compliance controls

• Better renewal planning

• Stronger audit trails.
  

However, technology only works when built on clean, consolidated data - something that reorganisation forces councils to tackle head on.

Moving forward with confidence

Local government reorganisation is undeniably challenging, but it is also a once in a generation moment to modernise procurement, reduce duplication, and strengthen outcomes for residents.

By prioritising visibility, standardisation, and strategic sourcing, procurement leaders can build a function that is efficient, compliant, and commercially robust, while remaining fully aligned to the new authority’s long-term goals. In doing so, they also position procurement as a meaningful driver of tangible social value across the organisation.

This is also a journey that councils do not need to navigate alone. Whether you need support mapping contracts, additional procurement capacity, category expertise, or a fully managed service, Consultancy+ brings the practical experience and commercial capability to help you deliver a smooth, compliant and cost-effective transition.

Planning or navigating a reorganisation? Our experts can help you deliver a smooth, compliant and cost‑effective transition. Contact us to start the conversation.