The Department has relatively more ambitious savings targets of £628 million over the next 10 years for its ‘category management’ programme. Category management involves grouping together related products and services into market ‘segments’ to generate efficiencies. The Department’s earlier attempt at introducing the practice in 2004 achieved significant efficiencies, but ultimately failed because the processes required to embed the programme were not established by the time start-up funding ...

The Department has relatively more ambitious savings targets of £628 million over the next 10 years for its ‘category management’ programme. Category management involves grouping together related products and services into market ‘segments’ to generate efficiencies. The Department’s earlier attempt at introducing the practice in 2004 achieved significant efficiencies, but ultimately failed because the processes required to embed the programme were not established by the time start-up funding was withdrawn. 46 Q 73 47 Q 77 48 Qq 77–78 16 Improving the performance of major defence equipment contracts 3 Securing skilled staff and additional fund Type: conclusion | Number: 20 | Response status: not_addressed Government response: The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 Although the department agrees with the Committee’s recommendation it does not agree with the Committee’s conclusion. The department has a track record of deliv