According to Lowendalmasaï English councils could save almost
£3 billion


A new report by Lowendalmasaï, has found that London councils could save hundreds of millions of pounds by improving the way they buy services from their largest suppliers. Extending the findings across England suggests that savings of at least £2.9 billion could be found by effective supplier management.

Lowendalmasaï analysed published data for 29 of the 33 London councils which shows they spent more than £8.2 billion on over 53,000 external suppliers (for payments above £500), with the top 100 receiving £2.865 billion (35%) of the total. Further analysis reveals that 15 suppliers were paid around £747 million for their work with over 20 councils, with two suppliers selling to all 29 councils. Lowendalmasaï’s extensive experience across many sectors shows that discounts of at least 15% are possible through effective supplier management. Applying this formula to the £55.347 billion spent on procurement by Councils across England in 2010/11 suggests that savings of at least £2.905 billion may be achievable.

To read the press release click here, and to read the full report click here

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