The NAO review looked at how the BBC manages its spending on goods and services and whether it is organised and equipped to deliver best value from its procurement. It also examined whether there was scope for the BBC to make further savings from its procurement arrangements.
The BBC spends more than £500 million each year on a wide range of goods and services, from broadcast specific products for programme makers, such as props, costume, and lighting, to more generic items for all its employees like stationery and travel, and according to the NAO, has adopted good procurement practices to improve significantly its procurement and deliver better value for money. The BBC is on course to achieve its target of £75 million savings from its procurement activities in the three years to March 2008
The report has identified a series of recommendations to improve the BBC’s procurement process further.
These include the BBC:
The Trust welcomes the BBC Executive’s commitment to develop further the use of e-procurement to reduce costs.
The Trust supports BBC Executive’s attempts to reduce the number of suppliers it has and increase the number of central contracts.
The Trust agrees with the NAO’s recommendation that a balance must be struck between reducing supplier numbers and keeping the supply base open.
The Trust endorses the BBC Executive approach to introducing other indicators as recommended by the NAO.