Barriers to online benefits
YPO’s findings show that almost half of public sector buyers (47%) don’t feel confident making any significant product or service purchases online. Public sector purchasers are particularly reluctant to buy services online for work. Almost three out of four (73%) have bought services such as energy and insurance online in their home-life, whereas only one in twenty (5%) have bought services via a website as part of their job.
According to YPO’s research, the main barriers to online purchases for work are concerns around compliance, online payment and audit trails. One in two people (50%) don’t feel confident they could be sure a web purchase would be compliant with their organisation’s requirements.
Online payment (anecdotally, security and not wanting to pay up front) is an issue for almost one in four (23%). One in six (15%) need an easily auditable paper trail and don’t feel confident online purchases will provide this.
Simon Hill, Managing Director at YPO said: “At YPO we have seen a lot of changes in purchasing habits over our 40 years of delivering legally compliant buying solutions for the public sector. Our new website’s features such as order tracking, downloadable contract documentation and secure invoice payment address buyers’ concerns and meet their needs, whether it’s for small stationery orders or large-scale energy, insurance and fleet contracts.
“Our customers are talented and experienced public sector purchasers and procurement officers who know how to secure the best value deals. So it was surprising our research showed that although public sector buyers enjoy saving time and money shopping online at home, when it comes to their buying job, more than half (58%) still reach for a catalogue, pen and fax and do it the hard way.
“However, the research also shows more than half of public sector buyers (53%) who have bought online for work did so for the first time in the last three years. So the move towards large-scale online public sector purchasing could be just around the corner.”
Being publicly owned, the new YPO website is part of the organisation’s considered move to align with the Government’s Digital Strategy, through which increasing numbers of public services are moving online to be delivered more efficiently and cost effectively.
Simon Hill said: “On average, an online service is 20 times cheaper than a phone transaction, 30 times cheaper than by post and 50 times cheaper than face-to-face*. Our aim at YPO has always been to deliver our customers the best value deals in terms of price and quality, with the assurance of full compliance. Our new website allows us to do this even more effectively, helping us put more back into the public purse.”
The new and improved YPO website offers public sector purchasers:
- YPO’s full product catalogue to provide the most up to date pricing, promotions and images
- Access to YPO’s contracts offering including user guides and relevant documentation
- Faster and more accurate search to help find exactly what buyers need
- Better online account management with order tracking, order history, user management and invoice payment
- Wishlists to help manage orders across buyers’ organisations and share favourite items with colleagues.
- Product reviews and feedback to help purchasers make better buying decisions.
- Ends -
Notes to editors:
The independent research was conducted on behalf of YPO by Zebra Square with a sample of more than 200 procurement officers and buying/purchasing managers across the spectrum of the public sector in March 2014.
*According to Government (Cabinet Office) figures March 2014.
- YPO is the largest public sector buying organisation in the UK, established and owned by 13 local government member authorities. The organisation has an expanding list of associate member authorities across the wider public sector.
- Established in 1974 to aggregate the procurement spend of its owning local authorities, YPO has helped drive public sector efficiency savings through its bulk buying power for supplies and centralised contract services initiatives.
- YPO is a member of the Pro5 Group of professional buying organisations in the UK, with a combined purchasing power in excess of £2 billion per annum.