As I sit to write this article, three thoughts immediately sprung to mind: 1. The private sector comprises privately … As mentioned before, public and private procurement occurs under very different circumstances, regardless if they’re both named procurement. Procurement jobs in Private sector. Risk of challenge is not seen as a serious concern.”, “Because of the Public Contracts Regulations most of the public sector is too risk averse to procure effectively”, “One significant difference is that the public sector seems frightened to talk to suppliers, relying too much on the use of formal processes & arms length negotiations.”, “Public sector procurement is too rules based (for very understandable reasons) to allow for much innovative procurement and to take advantage of shifts in the market.”. However more rules don’t necessarily mean better procurement. In an increasingly litigious environment with grumpy suppliers looking longingly at the profits to be made from winning the public sector tender that they are bidding for currently, it would be a huge surprise if local government buyers did not look at the risk of challenge as both real and growing. Private sector procurement can cover up their spend in many instances, and has a lesser presence of regulatory reporting. Since 1976, NEPO has worked in partnership with North East local authorities on the strategic procurement of high value goods and services in order to deliver savings, maximise efficiencies and promote best practice. However, in another sense it was easier as there was more data available – largely financial and therefore decisions were easier to make as the majority of things could be viewed and understood objectively. Within the public sector however, there is expectations that procurement will “address several issues beyond simple value for money or basic supply” (Smith 2017). Public Sector – needed ‘detailed’ understanding of some specific areas, which was easier from a knowledge/experience/qualifications point of view. At PASS we offer private companies easy access to procurement focused training and support, and … I hope that this post has provided you with some insight into key differences of private and public procurement. Real-time, relevant data about your supply chain can be … This makes it easier to procure goods and services based upon price and competitiveness. I think Public Sector in many ways is a far tougher place to operate and deliver a result. Public procurement typically has a larger focus on adding social value to a supply chain. To access this resource, sign up for a free trial of Practical Law. Private sector buyers are often guided chiefly by the profit motive. Private companies procure in an effort to increase shareholder returns. What is Joe Biden’s True Stance on the Stimulus Bill? this does not mean public procurers are lazy it is matter of the environment in which they are operating. Use the categories below to discover content for Spend Matters Members. 3 jobs to view and apply for now with Supply Management Jobs Welcome to CompeteFor. Public sector is highly regulated and sometime can be seen as inflexible.” “Procurement in the public sector (local government) is mechanically driven to meet procedures/regulations and often interfered with politically. Private procurement happens within privately owned companies; also … Public procurement is different from when private companies do business with each other because of the regulations that apply to all public sector contracts over a certain value, or ‘threshold’. Some believe this is down to lack of communication and leadership skills. The survey was carried out in conjunction with the organisers of the eWorld conference. An overview of the key stages in a private sector procurement cycle and the types of activities within each stage. It is easy to assume that government and public sector organizations are similar to private sector companies in the way they procure tools, such as technology solutions. There is a larger pressure on procurement professionals in the private sector to procure with a financially driven mindset; increasing margins, driving profitability and enhancing competitiveness. Private sector procurement is carried out in the context of for-profit organisations who are privately owned and are therefore subject to fewer regulations than those who operate within the public sector.