CASE STUDY

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September 26, 2023

October 25, 2023

Spend Data Analysis: Teignbridge District Council

Helping three councils to analyse their unstructured financial data to optimise spend, drive collaboration and measure sustainability performance

Local Government
Commercial, Spend & Impact

Challenge

Councils across the country struggle to create a single, clear view of their procurement and financial spend. This is often because data sits in multiple systems (ERP, p-cards, e-procurement, and others), and because authorities need to analyse tens of thousands of lines of financial transactions to get a full picture. This can make it difficult to identify areas for cost savings or service improvements, or to measure local spend, SME contributions, or sustainability. This was true in Teignbridge District Council, which has a shared procurement service with South Hams District Council and West Devon Borough Council, and the councils were failing to make the most of their procurement and spend data.

Approach

We partnered with Ignite Procurement - our partner for spend management and intelligence - to conduct a rapid spend data discovery to clean, analyse and enrich disparate financial data across the councils to build a clear picture to inform decisions. We analysed a wide range of factors, like categories of spend, supplier consolidation, opportunities for joining up across the council, levels of local spend, and GHG emissions associated with spend and contracts. We did this by cleaning raw data taken from the council financial systems, and enriching them with a wide range of different datasets within the Ignite platform.

Impact

We were able to help the councils to take their unstructured data, and turn it into powerful insights to inform decision-making. This includes:

  • Identifying opportunities for consolidating spend in the tail across more than 4000 suppliers and to the tune of tens of millions of pounds.
  • Identified specific contracts and vendors where the three councils could explore joint procurement or services.
  • Established a comprehensive carbon footprint baseline covering £138m of spend, allowing for emissions reduction target setting.
  • Showed that some spend across current contracts was going to high-risk suppliers, enabling targeted risk mitigation.
  • Uncovered that 66% of spend was with SMEs, highlighting strong local performance and opportunities to further social value goals.

Authors

Photo by the author

Johnny Hugill

Director of Commercial, Spend & Impact

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