Issue details

Proposed decision –

To approve and formally adopt the Kent County Council Commercial Strategy 2026 – 2028, establishing a clear strategic direction for procurement and contract management across the Council for the next three years. This decision will authorise the publication of the Strategy and initiate its implementation, including performance monitoring and stakeholder engagement.

Reason for the decision

To establish a Council-wide framework for delivering Best Value through procurement and contract management, aligned with the Council’s strategic priorities, financial plans, and the requirements of the Procurement Act 2023. The Strategy provides a structured, outcomes-focused approach to commercial activity that supports smarter decision-making, strengthens supplier relationships, and ensures public money is spent effectively and transparently.

By approving the Strategy, the decision will allow the Council to:

·         Embed commercial thinking as a core organisational discipline, positioning procurement as a strategic lever for achieving Best Value.

·         Enable delivery of the Medium-Term Financial Plan (MTFP) by improving cost control, identifying efficiencies, and supporting smart, data-led commercial decisions.

·         Strengthen supplier relationships and contract performance, through phased adoption of Supplier Relationship Management (SRM), targeted capability-building, and enhanced governance for high-value and high-risk contracts.

·         Increase support for Kent-based businesses, SMEs, and VCSEs, by simplifying procurement processes, removing barriers to entry, and embedding a consistent approach to Social Value to deliver tangible community benefits.

·         Ensure compliance with the Procurement Act 2023, aligning with new statutory requirements around transparency, innovation, and public value.

·         Build internal capability and accountability, through committing to commercial skills, clearer policies, and robust performance tracking.

·         Reinforce Kent’s leadership in public sector procurement, building on its CIPS Procurement Excellence Award and positioning the Council as a commercially confident, agile organisation equipped to meet future challenges.

Background – provide brief additional context

Kent County Council spends approximately £1.47 billion annually through third-party contracts, making procurement a key enabler of public service delivery, financial sustainability, and local economic growth. The Strategy has been developed following engagement with senior officers, Members, and consideration of feedback from suppliers and partners. It reflects national best practice, responds to legislative change, and aligns with local priorities including the Council’s Strategic Statement, Medium-Term Financial Plan, and Commissioning Framework.

The Strategy builds on Kent’s recognised strengths – including its achievement of the Chartered Institute for Procurement and Supply (CIPS) Procurement Excellence Award – and sets out a bold, transformational approach to commercial activity. It introduces a more structured, strategic model that moves beyond transactional procurement to embed commercial thinking across the organisation, ensuring procurement delivers maximum value for Kent’s residents and communities.

Options (other options considered but discarded)

A range of options were considered to determine the most effective way to improve commercial outcomes, deliver Best Value, and build organisational resilience. These included:

1. Do Nothing / Maintain Status Quo

This option would have involved continuing without a formally approved strategy and retaining existing priorities and practices. While low-risk in the short term, it was rejected due to:

·         Missed opportunities to embed commercial thinking more deeply across services.

·         Inability to address inefficiencies, inconsistent practices, and capability gaps.

2. Incremental Improvement

This approach proposed minor updates to the procurement strategy, with limited changes to governance, capability, or delivery models. It was considered more feasible in the short term but ultimately discounted because:

·         The previous strategy lacked formal approval, limiting its influence, enforceability, and stakeholder buy-in.

·         It would not sufficiently align with new legislative requirements, particularly the Procurement Act 2023.

·         It would not deliver the step-change needed to meet financial pressures or support Medium-Term Financial Plan (MTFP) savings targets.

·         It lacked ambition in addressing systemic issues such as fragmented supplier engagement, supporting local and small organisations inconsistent commercial practices, and limited focus on Social Value.

3. New Strategy (Proposed Option)

This proposal sets out a new and formally approved strategy that redefines the Council’s commercial ambition. It strengthens procurement governance, builds organisational capability, and aligns commercial activity with strategic priorities.

Key features include:

·         A clear vision and strategic priorities focused on efficiency, supplier engagement, support for Kent-based SMEs and VCSEs, Social Value, and compliance.

·         A formal commitment to professional best practices and continuous improvement.

·         Structured performance monitoring through measurable KPIs and actions.

This proposal was selected as it offers the greatest potential to:

·         Drive long-term financial sustainability and support budget recovery.

·         Position KCC as a commercially confident, agile organisation.

·         Secure Best Value for Kent residents and communities.

·         Unite stakeholders around a shared framework for delivery, accountability, and improvement.

How the proposed decision supports the Council’s Strategic priorities

The Strategy directly supports the Council’s strategic priorities by embedding commercial thinking across services, improving efficiency, and strengthening supplier relationships. It reinforces commitments to financial sustainability, responsible governance, and community outcomes by ensuring procurement delivers maximum value and supports Kent’s long-term success. The Strategy also aligns with ambitions to support the local economy and deliver better public services through smarter, more strategic commercial activity.

The Strategy is a key enabler of budget recovery and long-term resilience. By improving cost control, reducing waste, and enabling smarter commercial decisions, it supports the delivery of the Medium-Term Financial Plan and helps unlock efficiencies across the Council. It complements wider financial recovery efforts and ensures procurement contributes positively to the Council’s strategic priorities.