Back in 2008, a Source survey suggested that 75% of largescale clients already had preferred supplier lists (PSLs) in place and that almost everyone who didn’t, expected to implement them in the next couple of years; figures for large organisations were even higher. All the evidence suggests that this is exactly what has happened, aided by a recession and falling demand for consulting services. But, although welcomed by consulting firms that have benefited from the change, PSLs are disliked by those which have found themselves excluded from what increasingly feels like a “magic circle” of first-tier firms. To discuss the pros and cons of PSLs, Source brought together:

• Cameron Smith, who trained as a solicitor and has spent the last ten years working in procurement, particularly around professional services. Having helped Barclays set up its preferred supplier list (PSL), he has set up his own procurement practice, LLPS Consulting, and is currently helping Lloyds Banking Group right-size its consulting spend.

• Charles Scott, who, as a partner at The Berkeley Partnership, wins most of his consulting work through relationships with senior clients who know the firm well. However, he is acutely aware that the increasing prevalence of PSLs, especially in large organisations, creates a barrier which may make it harder for many consulting firms to compete in the future.

A full write-up of the debate is availble to download, here.