Making Savings in Transport Services

What’s the known challenge?

Councils commissioning transport services are suffering from significant pressure to evidence savings. All at the same time as being tasked to come up with a plan that sustainably maintains a safe and quality provision for the service user.

At a time when demand is only increasing and resources continue to stretch, this can understandably feel like an impossible task. The fear of making the wrong choice about the ‘solution’, is also paralyzing many councils up and down the country into sticking with the devil they know.

This mind set requires remedial action.

So what’s the current business issue?

The granular issues will of course vary by Council, but experience tells us that it will usually come back to working with an engaged and active supply base; along with limited control over the market and process inefficiencies compounding the problem.

What’s the symptom you’ll recognise?

Many councils we speak to trying to make savings are struggling to find them, believing external factors such as prices artificially inflating is a major factor. But many Councils have decided to work with limited providers, telling themselves this was their only option.

Prices artificially inflating though, is no more than the symptom of a deeper cause.

Which is good news for those Councils believing they have already tried everything and have exhausted all their options…

Because they haven’t.

So what is the root cause and how can you solve it?

As we see it, there are three causes linked to savings:

  1. Limited visibility of and competition amongst providers
  2. A lack of ownership and control over the market (and any changes / fluctuations) 
  3. Process inefficiencies in terms of their design and delivery 

This is because savings are the output of the entire Council ecosystem. If that ecosystem has flaws, which many do, savings simply won’t be as effective or as Councils really need them to be.

Solving this problem means you have to start from the beginning. Technology isn’t the starting point, nor are processes or simply bringing in more suppliers.

It requires flexibility of the entire approach which is wrapped around the needs of the service users.

What we do is ensure you have that ecosystem in place with the individual at its heart.

The result?

This is because we work to keep providers actively engaged throughout the process and their bids are driven based on quality and price. Processes are streamlined and automated where relevant and control resides with the Council, as they now have full visibility and engagement with all selected suppliers.

Technology is reducing the complexities in commissioning transport services and making significant savings.

Most importantly, however, it’s an approach that is ensuring the individual remains at the very heart of the process, a process that Councils has full control over.

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