Purpose

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:
 

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:
 

Lack of alignment
with the Council’s evolving financial and policy
context.

·        
Missed opportunities to embed commercial thinking
more deeply across services.
·        
Inability to address inefficiencies, inconsistent
practices, and capability gaps.
 

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.
 

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.
 
 
 
 

Decision

That the Deputy Leader agree to:
 

(a)     Approve the
adoption and implementation of the Kent County Council Commercial
Strategy 2026-2028.
 

(b)     Delegate
authority to the Chief Procurement Officer, in consultation with
the Cabinet Member for Finance, to refresh and/or make
non-substantial revisions to the strategy where changes do not
require additional governance.
 

(c)     Delegate
authority to the Chief Procurement Officer to take relevant
actions, including but not limited to, entering into and finalising
the terms of relevant contracts or other legal agreements, as
necessary, to implement the above decision.
 

(d)     Delegate
authority to the Chief Procurement Officer to approve the
Responsible Procurement Charter and Contract Management Policy as
supporting documents to the Commercial Strategy.