Key characteristics

Collaborating with others can help you reduce costs and add value to your business, by enabling you to successfully supply into the public sector. However the public sector is not an ‘easy fix’ for all.

Supplying products into the public sector market tends to be different to other routes to market for the following reasons:

1. Demand led

There has been a fast-growing level of interest amongst the general public in locally produced, fresher, healthier produce to be supplied in schools, hospitals and other public institutions. As a result demand tends to be driven heavily by the end user and this demand is likely to grow.

However in many cases the end-user has found that their needs cannot be matched by supply of products within their local area. For example, Humphrey Perkins School in Leicestershire is looking to work directly with local producers. However, the procurement officer at the school is having difficulty sourcing the right produce, at the right cost, from local producers.

2. It is not easy

There is no obvious route into the public procurement sector. Often there is a need for a project champion with plenty of enthusiasm and commitment to drive the project forward.

You also need a clear understanding of the skills needed to supply their vision.
Training or key staff appointments can strengthen the management team where gaps exist.

3. Scale of public sector opportunities vary considerably

The size and level of sophistication of supply chain models used to supply the public sector vary considerably. For example, contracts could range between individual producers supplying fresh produce directly into a local school, to a large farmer controlled business collaborating with a food processor to supply a large volume of products to a series of public sector end users.

Secondly, the range of products within public sector contracts also range widely, from supplying apples into a local school to supplying a basket of goods including processed meat, dairy, dry packaged goods, and organic or conventional goods.

4. Successful projects tend to be customer-focused

Farmers and farmer groups who supply the public sector, tend to have succeeded because they have focused on the needs of the end-user (e.g. schoolchildren or the elderly). All parts of the supply chain need to focus on what is required by the end-user and willing to adapt their product or service to suit.

5. Wide range of possible routes to market

Public sector customers include hospitals, primary care trusts, universities, council run tourist attractions, schools.

There may be several different routes to your public procurement customer, depending upon the product, your end-user and their location.

Producers can supply direct to public sector customers. There are also opportunities to supply the public sector indirectly through wholesalers, distributors or processors. This can help small farm businesses overcome some of the barriers associated with large contracts or not being able to supply enough of a wider range of products single handedly.

Increasingly the public sector are dividing large contracts, which is providing a greater opportunity for smaller producers to supply part of a contract, by working as part of a group of suppliers or collaborating with others in the supply chain to provide part of a larger contract.

The key is to identify your end-user and if possible to talk to them. You can then work back along the supply chain, identifying and making contact with each link.

More information on selling to the public sector can be found in Defra's report: Selling to the public sector: A guide to the Public Sector Food Procurement Initiative for farmers and growers.