Through Bulk Purchasing and Smart Procurement Local Government Procurement Delivers Huge Value to NSW Local Councils
LOCAL GOVERNMENT PROCUREMENT
Through Bulk Purchasing and Smart Procurement Local Government Procurement Delivers Huge Value to NSW Local Councils
Local Government Procurement ( LGP ) is an organisation that provides procurement services for the New South Wales ( NSW ) local government , which consists of 128 councils across the state .
It ’ s a huge undertaking , with the total amount of spend on suppliers hitting the $ 13bn mark every year . To put this into context , Australia ’ s four largest banks spend around $ 5bn on suppliers – and that ’ s the private sector .
“ At $ 13 billion , we have one of the largest supplier bases anywhere in the country ,” says Anubhav Madan , LGP ’ s Head of Procurement .
As a wholly owned subsidiary of Local Government NSW , LGP was established to help member councils acquire goods and services as efficiently and cost effectively as possible .
Each year , LGP saves NSW councils millions of dollars in the procurement of goods and services through negotiated pricing and bulk purchasing power . In FY23 , LGP ’ s services have delivered an estimated AU $ 76mn in efficiency savings .
LGP brings value-add to local authorities But LGP ’ s focus is not solely on delivering the best possible value for money on sectorspecific solutions , but also on streamlining access to reputable suppliers and helping minimise procurement risk for councils .
92 February 2024