Demand Management in Public Procurement


Demand management plays an important role in public procurement of goods and services. Case study examples are presented to demonstrate how public sector organisations can make substantial savings and details are provided on the steps required to manage demand successfully.

Technique Overview

Demand Management in Public Procurement

Demand Management in Public Procurement Definition

Demand management is “the active intervention in the market to influence the demand for services and the assets generated and/or used in supplying these services to best match available resources to real needs and ensuring the services provided are delivered with the best value for money” (NSW Treasury, 2004).

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Business Evidence

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Examples of Demand Management in Public Procurement *

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Business Application

Demand Management in Public Procurement Implementation *

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Professional Tools

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Further Reading

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Demand Management in Public Procurement References (4 of up to 20) *

  • CIPS (2008) Whole Life Costing (WLC) - The CIPS Position and What the Buyer Needs to Know, CIPS, CIPS Knowledge.
  • CIPS (2009) Sustainable Procurement, CIPS, UK.
  • den Hertog, P. and Brouwer, E. (2001) Innovation in the Dutch Construction Cluster, in OECD (Ed.), Innovative Clusters: Drivers of National Innovation Systems, OECD, Paris.
  • European Commission (2010) Promoting Innovation Through Public Procurement: Best Practice & Networking, Directorate General for Industry and Entrepreneurship, Brussels.

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