Procurement strategy

It’s been a challenging six months for anyone working in social housing procurement. We’ve had the biggest shake up of public buying rules for decades, the introduction of extensive tariffs, ongoing geo-political tensions and stubbornly high UK inflation.  

On top of this, procurement teams are facing growing pressure to give small suppliers a fair chance, deliver measurable social value and create savings to fund new build and remediation. There’s excitement about these opportunities but also apprehension at the task ahead. 

Against this backdrop of pressure and possibility, I’ve noticed new skills and approaches coming into view. It’s those local authorities and housing associations adjusting their procurement tactics and bringing in fresh talent, processes and ideas that are finding ways to stay effective. Here are some important – and effective – shifts:  

1. Use AI strategically to ease admin load 

We all know that artificial intelligence can automate routine tasks, provide quick insights and generate content, but there is disparity in how social landlords are adopting it for procurement. 

In some buying teams, AI is used on an ad hoc basis, depending on the digital confidence and literacy of staff. But the most effective results come from a planned and consistent approach to employing AI for set tasks.  

Drafting specifications: One starting point is specification writing. With clear prompts, generative AI can help to outline requirements for a product or service. But use with caution – automated specs may not meet legal or compliance standards, so guardrails and human oversight are essential. 

Writing notices: AI is also supporting with the creation of pipeline notices, something that’s particularly relevant now the Procurement Act requires organisations with a spend above £100m per year to publish a notice for each opportunity in the next 18 months with an estimated value of more than £2m. For teams managing dozens of contracts, this is a game-changer, saving time and freeing up resource for more strategic work. 

Supporting bids assessments: AI can assist procurement teams as they evaluate bids, helping with the analysis of supplier documents to surface key data and insights that support managers with their decision-making. 

Bid writing: Suppliers are also using AI to write their tender applications. This helps SMEs with little resource or experience to bid more easily. But generic, templated applications may miss the mark. Procurement teams must sharpen their ability to spot AI-generated content and ensure bids still reflect genuine understanding of housing needs. 

2. Prioritise and properly resource contract management  

In social housing, procurement teams tender contracts, but ongoing contract management usually falls to service leads who are juggling multiple priorities.  

That can mean missed opportunities, eroded value over a contract’s lifecycle, and underperformance that goes unchecked. Research by World Commerce & Contracting (formerly IACCM) suggests that poorly managed contracts cost organisations on average 9% of annual turnover through ‘value leakage’.   

The Procurement Act now requires housing associations and councils to publish supplier performance metrics, a change that will add pressure but hopefully, drive better contract management. 

I speak to dozens of housing providers every week and those managing to maintain the value identified in a tender exercise have certain ‘pillars’ in place:  

Strong, positive supply chain relationships: Know who your key suppliers are and invest time in building equal, open partnerships with good communication.  

Effective monitoring and improvement processes: Be clear on roles and responsibilities around contract management and establish easy-to-use reporting systems. 

Training for service managers responsible for contracts: They don’t always have experience around supplier management, so building confidence and developing skills will help enormously. 

3. Position procurement as a career destination 

Recruiting the best procurement talent is a growing challenge across the public sector, and social housing is no exception. With demand (and salary expectations) higher than I’ve seen them for many years, buying functions across councils and housing associations must position themselves as strategic, innovative and rewarding places to build a career. 

That means showcasing the impact procurement has on communities and people’s lives – a point of difference from the private sector. And it also means looking beyond process skills. Today’s buyers need to understand markets, challenge suppliers, and contribute to strategic decision-making 

Housing providers that communicate the wide-ranging value of procurement will be better placed to attract and retain top talent. 

4. Engage local suppliers meaningfully 

Small businesses are vital to local economies, and social landlords are under growing pressure to make opportunities more accessible to them. The Procurement Act and National Procurement Policy Statement both reinforce this, with measures like 30-day payment terms and simplified bidding platforms. 

But real change comes from everyday decisions. Are your contracts structured in ways that allow smaller firms to compete? Are your templates and processes easy to navigate? Are you engaging with local suppliers to understand what helps—or hinders—their ability to bid? 

Market engagement is vital. Ask suppliers what they need and be open to adjusting your approach. Whether it’s breaking down large contracts or offering clearer guidance, small shifts can make a big difference. 

5. Analyse cost pressures and map scenarios  

When suppliers pass on price hikes, it’s procurement managers who are left to navigate the fallout. Understanding your supply chain’s cost base is crucial here. Empathise with supplier pressures, but don’t accept price rises at face value. Ask for evidence and do your own research. 

On materials supply, for example, find out if products are energy intensive in terms of manufacture and whether they’ve been impacted by high shipping costs.  

Scenario-planning is critical – be ready for all situations. From events over the past few years, we know it’s hard to predict what will happen next. That means preparing for two opposite ends of the spectrum and everything in between. 

Procurement teams in social housing are adapting fast. But the ones making real progress aren’t chasing trends – they’re building strong procurement foundations with accountable and controlled contract management, fair and transparent supplier relationships, investment in technology and people, and a thorough understanding of key markets.  

By Guy Stapleford, head of consultancy services, PfH

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