Recommendation 20

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failed because the processes required to embed the programme were not established by the time start-up funding was withdrawn. 46 Q 73 47 Q 77 48 Qq 77–78 16 Improving the performance of major defence equipment contracts 3 Securing skilled staff and additional funding The Department’s reliance on temporary contractors