What is Progressive Procurement?

When procuring goods and services, it is important to look beyond financial costs. The term progressive procurement aims to sum this up - using procurement as a tool for positive change.

 

Progressive procurement is an umbrella term combining elements of social procurement, supplier diversity, indigenous procurement, and wellbeing measures. It brings about the concept of looking beyond price to social and public value. Buyers of goods and services are responsible for impacts on the environment and the wider community, which can be supported through buying locally and with impact.

The term ‘progressive procurement’ gained recognition following the Public Services (Social Value) Act 2012. This Act places a responsibility on relevant public sector organisations to consider social value in contracts. It supports organisations to consider the social, economic and environmental impact of their procurement methods and supply chains.

 

Progressive Procurement v Sustainable Procurement

Progressive procurement can be seen as an umbrella term, encompassing sustainable procurement alongside social value. Sustainable procurement arguably tackles only ‘hygiene issues’ – that is, these efforts are only a baseline for improving procurement practices.

Progressive procurement encourages a more socially responsible supply chain by promoting value creation. Potential suppliers must compete, not only on price and quality but also on how ‘good’ they are and how much they would contribute to society if they were to win work with you.

 

Recent Changes to the Procurement Industry

2021 saw many significant industries take on board more sustainable and mindful processes. Procurement is now viewed as a tool to enable positive change. We are beginning to see more joint working between buyers and suppliers, sharing knowledge, requirements, and insights. Across the board, there is an emerging commitment to transform public services for the better.

The National Procurement Policy was introduced in June 2021, encouraging contracting authorities to consider national priority outcomes alongside additional local priorities. This includes:

• creating new businesses, new jobs and new skills
• tackling climate change and reducing waste
• improving supplier diversity, innovation and resilience

 

How can buyers ensure their procurement is ‘progressive’?

Buyers are at the forefront of the progressive procurement movement. The following are some actions that can be taken:

• Pre-Tender – engage in conversation with suppliers and set expectations. We often find buyers are nervous about the procurement process and that they don’t want to influence tenders. But, discussing with suppliers is a great way to understand the market. Sellers also need to know whether it is worth their time responding to tenders.
• Post-Tender – give feedback to unsuccessful suppliers.
• Look at your pipelines and planning in advance.
• Upstream activity.
• Procurement working as a team: not as gatekeepers. Ideally, the team should work on the procurement process from start to finish, not just isolated to those specialising in procurement. This brings more ideas and opinions to the table, which is crucial in selecting the correct supplier who will ‘progress’ the organisation.

 

Ultimately, public sector organisations have a choice between building a supply chain that creates and nurtures social value or simply working with suppliers who may charge less, but this equates to the little value they would bring to your organisation. In some cases, suppliers that care very little about sustainability efforts and social value may damage an organisation.