Feasibility Study Template

Version 0.1

1
Guidance note The first stage of the Collaborative Category Management Process
adopted by SSF will include some initial analysis at the very start of the Category Sourcing
Process.
This include;

High level analysis at Master Category level to support the proposed approach;

The analysis at this stage should include as a minimum:

o A broad scope of the Category

o Verifiable spend;
o Details of existing contracts;
o Details of the major suppliers;
o A high level market analysis;
o A profile of the customer base and how it is segmented ie central
government, local authorities, health sector, education sector etc; and
o Other identifiable stakeholders ie trade associations or bodies,
environmental/sustainability.

Options; and

Next steps

Depending on the complexity of the Master Category the Feasibility Study should not
realisticaly exceed 15 to 20 sheets of single sided pages of A4. At this stage the study will
be at Master Category level e.g. Fleet

A more detailed analysis will be undertaken at the Initiative Detailed Analysis Phase and a
full Feasibility Study document (layout/contents as below) produced to support the go/no go
decision of moving on to full Project Launch. In most cases at this stage the study will be for
a Category e.g. tyres.

If the decision is taken to progress, the content of the Feasibility Study report will be the
starting point for the Source Plan.

2
 TABLE OF CONTENTS

1 Executive Summary 6
1.1 Background and Baseline 6
1.2 Benchmarking and Opportunities 6
1.3 Recommendations 6
1.4 Implementation Planning 6
1.5 Savings 6
1.6 Return on Investment 6
2 Terms of Reference 8
2.1 Introduction and Background to Analysis 8
2.2 Scope of Work 8
2.3 Objectives 8
2.4 Expected Deliverables 8
2.5 Resources Available 8
2.6 Management Arrangements 8
2.7 Reporting Regime 8
2.8 Risk Management and Mitigation 8
3 Business Requirements 9
3.1 Who? (e.g. customer, stakeholders) 9
3.2 What? (e.g. functional, volumes) 9
3.3 Where? (e.g. locations, sites) 9
3.4 When? (e.g. time frequency volatility) 9
3.5 Why? (e.g. demand drivers) 9
3.6 Needs and Nice to Haves 9
3.7 Using QCLDM (Quality, Cost, Logistics Development Management) 9
3.8 Missing Information and Assumptions 9
4 Goods and Service Delivery 10
4.1 Who? (e.g. suppliers, stakeholders, subcontractors) 10
4.2 What? (e.g. specifications, volumes) 10
4.3 Where? (e.g. locations, sites) 10
4.4 When? (e.g. time, frequency, volatility) 10
4.5 Deliver Model 10
4.6 Missing Information and Assumptions 10
5 Supply Market 11
5.1 Balance of Power 11
5.2 Rivalry (Porters 5 Forces Analysis) 11
5.3 Substitutes 11
5.4 New Entrants 11
5.5 Product/Service Development 11
5.6 Technology 11
5.7 External forces (PEST analysis) 11
5.8 Number of Buyers and Number of Suppliers 11
6 Procurement 12
6.1 Influence 12
6.2 Maturity 12
6.3 Capability 12
6.4 Capacity 12
6.5 Structures 12

3
6.6 Process 12
6.7 Constraints 12
6.8 Models 12
7 Baseline and Benchmarking 13
7.1 Approach 13
7.2 Spend and Price by 13
7.3 Assumptions 13
8 Procurement Levers 14
8.1 Overview 14
9 Opportunities 15
9.1 Overview 15
10 Risks 16
10.1 Overview 16
11 Recommendations 17
11.1 Tactical 17
11.2 Strategic 17
11.3 Programme 17
12 Savings Indentified 18
12.1 Assumptions 18
12.2 Confidence 18
12.3 Type 18
13 High Level Delivery Plan 19
13.1 Overview 19
14 Resource Plan 20
14.1 Overview 20
15 Return on Investment 21
15.1 Investment Cost (year 1, year 2etc) 21
15.2 Benefit (year 1, year 2.etc) 21
15.3 Break Even Point 21
15.4 Assumptions 21
16 Appendices 23
16.1 Table of Appendices 23

4
 Feasibility Study
Executive Summary
Version 0.0

5
0 Executive Summary

0.1 Background and Baseline

0.2 Benchmarking and Opportunities

0.3 Recommendations

0.4 Implementation Planning

0.5 Savings

0.6 Return on Investment

6
 Feasibility Study
Main Body
Version .0

Part of the
Pan Government Collaborative
Procurement Programme

7
1 Terms of Reference

1.1 Introduction and Background to Analysis

1.2 Scope of Work

1.2.1 Whats In

1.2.2 Whats Out

1.3 Objectives

1.4 Expected Deliverables

Including Descriptions, Quality, Criteria, Approval process

1.5 Resources Available

Including Assigned staff, Roles, Duration

1.6 Management Arrangements

1.7 Reporting Regime

Including schedule, structure and content

1.8 Risk Management and Mitigation

8
2 Business Requirements

2.1 Who? (e.g. customer, stakeholders)

2.2 What? (e.g. functional, volumes)

2.3 Where? (e.g. locations, sites)

2.4 When? (e.g. time frequency volatility)

2.5 Why? (e.g. demand drivers)

2.6 Needs and Nice to Haves

2.7 Using QCLDM (Quality, Cost, Logistics Development Management)

2.8 Missing Information and Assumptions

9
3 Goods and Service Delivery

3.1 Who? (e.g. suppliers, stakeholders, subcontractors)

3.2 What? (e.g. specifications, volumes)

3.3 Where? (e.g. locations, sites)

3.4 When? (e.g. time, frequency, volatility)

3.5 Deliver Model

3.6 Missing Information and Assumptions

10
4 Supply Market

4.1 Balance of Power

4.2 Rivalry (Porters 5 Forces Analysis)

4.3 Substitutes

4.4 New Entrants

4.5 Product/Service Development

4.6 Technology

4.7 External forces (PEST analysis)

4.8 Number of Buyers and Number of Suppliers

11
5 Procurement

5.1 Influence

5.2 Maturity

5.3 Capability

5.4 Capacity

5.5 Structures

5.6 Process

5.7 Constraints

5.8 Models

12
6 Baseline and Benchmarking

6.1 Approach

6.2 Spend and Price by

6.2.1 By Supplier

6.2.2 By Business Unit

6.2.3 By Change over Time

6.2.4 By Product

6.3 Assumptions

13
7 Procurement Levers

7.1 Overview

Lever Description

Leverage volume

Simplify specification

Develop suppliers

Reduce joint costs

Contract smartly

Increase competition

Rationalise suppliers

14
8 Opportunities

8.1 Overview
Difficulty Of Timescale
Type of
# Opportunity Description Implement-
Start Complete Benefit
ation
1 Run tender e.g. Run tender exercise for X spend across Y business
units. e.g. Reduced
e.g. M e.g. 3 months e.g. 12 months
price

15
9 Risks

9.1 Overview
ID Risk Probability Impact Mitigation

16
10 Recommendations

10.1 Tactical

10.2 Strategic

10.3 Programme

17
11 Savings Indentified

11.1 Assumptions

11.2 Confidence

11.3 Type

18
12 High Level Delivery Plan

12.1 Overview
Apr 06 Jun 06 Sept 06 Dec 06 Feb 07 Apr 07 Jun 07

Tactical activities
Manage Increase
Team formation Contract award contracts benefits
Go to market realisation

Duration c.12 weeks c.12 weeks c.16 weeks c.12 weeks c.12 weeks

For example For example: For example: For example: For example:
Verify the Opportunity Commence migration of off- Assessment of bids Establish supplier Review
Assessment contract spend to competitive Run eAuction and contract effectiveness
Complete the Source arrangements management of strategy
Activities Plan Establish compliance regime to regime for new
Identify all stakeholders improve current and future arrangements
and map arrangements Track benefits

For example: For example: For example: For example

End of For example: OJEU notice contract award supplier post
phase Source plan management implementation
milestones regime review

19
13 Resource Plan

13.1 Overview
Estimated resource
. Role Key Skills Potential sources
Number Duration Cost
Planning
Category Operational support
team Options development and 1 12 months Internal appointment
assessment
resource Analysis

20
14 Return on Investment

14.1 Investment Cost (year 1, year 2etc)

14.2 Benefit (year 1, year 2.etc)

14.3 Break Even Point

14.4 Assumptions

21
Feasibility Study
Appendices
Version 0.

22
15 Appendices

15.1 Table of Appendices

23