OT Group has been named as one of only two suppliers on Crown Commercial Service’s (CCS) Tail Spend Solution framework.
This framework aims to simplify the supply chain, consolidate deliveries, and provide complete financial oversight.
Under the agreement, OT Group’s e-commerce solution, SmartPad will provide Government departments with a single procurement platform, which enables full control of expenditure and allows users to order pre-approved products in a fast, easy to use manner.
Malcolm Brechin, National Director of New Business at OT Group said, “now, more than ever, it’s vital that public sector organisations have complete control and visibility over their supply chain. And, with well over £1 billion of tail spend each year, this expenditure should be better managed, tied into KPIs and, most importantly, reported on.
“We’re looking forward to developing a strategic partnership with CCS and their customers - demonstrating our ability to supply public sector organisations with anything they need, with complete management information.”
With 100,000’s of unique products (SKUs) across 10,000s of suppliers and pre-agreed pricing to deliver significant value for money savings for the individual departments and Her Majesty’s Government.
CCS, an executive agency of the Cabinet Office, supports the public sector to achieve maximum commercial value when procuring common goods and services. In 2020/21 CCS helped the public sector to achieve commercial benefits equal to £2.04 billion - supporting world-class public services that offer the best value for taxpayers.
Long-tail spending is generally classed as relatively low-value products purchased in an ad hoc manner by members of staff outside of an organisation’s formal procurement practice. This could include a school purchasing stationery for a specific, short-term need or a local authority buying camera equipment and accessories.
The spend is often invisible until it appears in an organisation’s end of year accounts, and this can cause significant budget pressures if not controlled properly. Goods, rather than services, will be the initial focus in CCS’s Tail Spend Solution framework.
Appointment to the Tail Spend Solution framework (RM6202) involved a rigorous application process – including endorsements from some of OT Group’s key clients – and it is expected to contribute significantly to OT Group’s revenue over the next four years.