From the General Managers desk | September 2026

Published on 16 September 2026

Procurement as a strategic lever for council performance

Article by Glen Duff, General Manager

Key takeaways

Procurement is a strategic lever for managing risk, strengthening governance and improving community outcomes.
Stronger policy alignment, technology and capability development will help councils lift procurement maturity and deliver better value.
Local Buy’s aggregated electricity contracts demonstrate the value of Local Buy’s sector partnership, delivering an estimated $21.7 million in savings.

Procurement is now one of the most important strategic levers available to local government.

Compliance, efficiency and legislative requirements remain essential, but procurement now plays a broader role in helping councils manage risk, create value and improve organisational performance.

Across workforce challenges, infrastructure delivery, sustainability, local economic development, disaster readiness and regulatory change, procurement capability is central to council performance and community impact.

Addressing sector challenges through procurement leadership

The topics in this edition show how broad that role has become.

Labour hire licensing reinforces the importance of governance, contract management and supplier oversight. Fleet electrification shows how procurement decisions shape long-term financial, operational and environmental outcomes. Brisbane 2032 highlights the need for councils and suppliers to prepare early for opportunities and delivery pressures across Queensland.

The common thread is capability. Strong procurement capability helps councils make informed decisions, manage risk, engage the market effectively and deliver greater value for their communities.

Supporting councils to mature procurement practice

Local Buy’s role extends beyond managing compliant procurement Arrangements. We help councils access category expertise, practical tools, market intelligence, professional development, shared learning and procurement technology that supports stronger procurement excellence across the sector.

Procurement excellence requires skilled people, sound governance, strong leadership and a sector-wide commitment to continuous improvement.

This thinking is informing Local Buy initiatives such as the Industry Capability Program and planning for the Local Buy Procurement Excellence Conference in May 2027. Both are designed to support knowledge sharing, recognise excellence and provide practical pathways to lift procurement capability across the sector.

Initiative spotlight: Procurement policy updates

One of our key initiatives is in supporting councils with how they can better reflect Local Buy in their procurement policies and procedures. Clear internal guidance helps officers understand when and how Local Buy Arrangements can be used, supports compliance and efficiency, and reduces uncertainty in day-to-day decision making. Councils reviewing their procurement frameworks are encouraged to contact Local Buy for practical guidance on how to leverage Local Buy’s sector solution and align your council objectives.

Value spotlight: $21.7 million in electricity savings: The strategic value of Local Buy

In conversations with council CEOs, a consistent priority is leveraging Local Buy to help the sector reduce cost and strengthen procurement outcomes. Local Buy’s aggregated electricity procurement model is a clear example of that value in practice, showing how our model delivers significant savings, reduces duplication and strengthens outcomes across the sector.

Through the LB333 Energy Arrangement, Local Buy goes to market on behalf of participating councils and other eligible entities to establish sector-wide electricity contracts aligned to collective energy requirements. The arrangement provides a compliant, probity-assured pathway to market where Local Buy converts the sector’s aggregated demand into stronger commercial outcomes.

The financial outcomes are material. Local Buy’s electricity contracts are delivering an estimated $21.7 million in savings across small sites, large sites and street lighting. Existing participants are achieving savings of up to 35% for small sites, 10% for large sites and 17% for unmetered street lighting.

Currently supporting 27 entities, including 23 Queensland councils, the benefits are being realised across organisations of all sizes. Larger councils are securing multi-million-dollar savings, while regional and smaller councils are achieving meaningful cost reductions through the same model.

As financial pressure continues across the sector, Local Buy’s electricity contracts demonstrate what can be achieved when councils work with Local Buy. Councils not yet participating are encouraged to contact Local Buy to explore how the contracts could support their energy requirements, deliver savings and contribute to greater value to the sector.

Delivering long-term value for councils and communities

As councils respond to increasing complexity, strong procurement practice and Local Buy’s sector-wide solutions and savings initiatives will be critical to delivering sustainable, resilient and community-focused outcomes.

Local Buy remains committed to supporting councils through trusted partnerships, practical solutions and sector leadership.

If you would like to discuss any of the topics covered in this edition, please contact us at enquiry@localbuy.net.au.

All the best

Glen Duff
General Manager