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˜ Your view of procurement?


˜ Procurement at Leeds
˜ Procurement Essentials
˜ The Procurement Cycle
˜ Supply Positioning Technique
˜ Procurement Spend Analysis
˜ Role of Politicians in Procurement
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˜ Responsible for direct and measurable


savings
˜ Commercial negotiations with suppliers
˜ Continuous improvement programs
˜ Contract and risk management
˜ Cost avoidance programs
˜ Market segmentation and supply
positioning
˜ Part of a multi-disciplinary team
˜ Key to successful strategy delivery

  

˜ £eals in low value orders and commodities


˜ No added value ± adds delay
˜ Handles the paperwork
˜ Controls rather than enables
˜ Subset of the finance function
˜ An overhead outweighing savings
˜ Stand-alone administrative function
˜ ³Any one can do procurement´
 
 

   

˜ 
 
 
D m spent on external goods works and services
D  invoices p.a. (45 < 5
D 5 paper invoices ( telephone directories /mth
D  approved contractors
D 4 corporate framework contracts
D 4 creditors
˜ 
   
D Corporate Procurement Unit
D Public and Private Partnership Unit
D £epartmental Resources (e.g. A£S Social Services
Procurement Regulations

˜ x 
    
 
D Thresholds
± Works .m Services & Supplies 54k
D Three Procedures
± Open Restricted and Negotiated
˜        
D air Transparent Legal Value for Money
˜       
D E.g. TUPE (staff transfers Health and Safety Equalities
etc.
 
   

 x  

˜  
  that create the  
and   necessary for successful procurement
contract management and supplier relationships

˜ A 
   that is built around the

   a structured approach to  
and 

 and   requirements

˜   

  planned well in advance that
it is about ensuring benefits ( 
 are delivered
 

 and sound   
with suppliers as well as  .

 x  
Corporate Arrangements
˜ Leadership ˜ Management information
˜ Procurement Strategy ˜ Performance measurement
˜ Procurement policies and ˜ Supplier intelligence
procedures ˜ Supplier relationships
˜ Register of contracts ˜ Collaboration
˜ Ethics and fraud ˜ Promoting diversity and competition
prevention ˜ Resourcing projects
˜ Procurement skills ˜ Business case culture
˜ Community benefits
˜ Centre of expertise

 x  
Procurement and Contract
Management
˜ Project management
˜ Project organisation
˜ Risk management
˜ Procurement cycle
˜ Gateway review process
˜ Contract management
˜ Supplier relationship management
  
  
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D Planning specification supplier selection
D Risk assessment contingencies negotiation
D Contract features

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D Measurement expediting returns
D Transactional elements
D £isposal
        
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˜ Who are the suppliers


˜ Who are the buyers
˜ What are we buying
˜ Individual items and categories
˜ Spending profiles
D Value quantity frequency etc
˜ How are we buying
D Under common contracts?
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˜ Set realistic and achievable savings targets


˜ Understand the range of things procured
˜ Obtain an overview of our supplier base
˜ Understand who is procuring and how
˜ £evelop procurement strategies policies and
systems
˜ Baseline measures and key performance indicators
  

Leadership decision-making and
scrutiny
  


˜ Adopting Corporate ˜ Monitoring Performance of


Procurement Strategy partnerships and other key
aligned with strategic contracts
outcomes ˜ Learning lessons from
˜ Overseeing corporate major projects and
arrangements for partnerships
procurement and ˜ Leading best value reviews
contract management of procurement and
˜ Promoting the use of contract management
gateway reviews
  

   — 
˜ Conducting inquiries ˜ Reviewing the
into new models of performance of
service delivery partnerships and other
˜ Reviewing areas of key contracts
high spend to identify
˜ Ensuring that lessons are
opportunities for
improved value for learnt from major
money projects and partnerships
˜ Challenging the
progress of major
procurement projects
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˜ Policy and Strategy
˜ Structure and Organisation
˜ Skills and Capabilities
˜ Information Systems
˜ Tools and Techniques
˜ Procurement Arrangements
˜ Controls and Standards
˜ Performance Monitoring
 —  

˜      


˜    
  
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˜ 
 
˜        
˜       
˜     
˜      
   
˜       
—     

˜ Sphere of activity and terms of reference.


Areas of activity - strategy and operational
˜ Staff supplemented by officers with skills
currently lacking
˜ Independent person to act as a single point
of enquiry for suppliers
˜ µPartner style¶ relationship with the
Chamber of Commerce
˜ Nominated officers have departmental
responsibility for procurement and meet as
a Procurement Best Practice orum
˜ Organisation be funded from central
resources
—    

˜ Personal development plans established


˜ Training via national vocational qualifications
˜ One-day seminars delivered on a µtrain the
trainer¶ basis
˜ A skills audit be carried out of all those
involved in procurement initially for all
levels/disciplines
˜ Procurement be incorporated into existing
management training programmes
˜ A training programme be delivered to
politicians and suppliers
˜ A political procurement champion be
nominated
% 
  

˜ Strategy for the introduction of e-procurement
systems (graduated basis with a
consultation/training programme for suppliers
carried out beforehand
˜ Introduction of purchasing cards
˜ £etailed analysis be carried out on current
financial systems to ascertain whether they
can provide necessary procurement
management information
˜ Intranet and Internet be developed into a best
practice/standard document resource for all
˜ £evelop an electronic contract information
system so that people can find best deals
` `  

˜ Standard tender evaluation model developed so


tenders are evaluated on best value principles
˜ Contractor performance monitoring
strengthened
˜ Rationalisation of Approved Lists System
˜ £evelop relationships with suppliers
˜ Move away from contract guarantee bonds
˜ A strategy be developed to counteract false
information including IS 9 certifications

 Ô
 

˜ E-instruction manual to standardise approaches


to procurement projects including options
appraisal market testing outsourcing
partnering project management market
management
˜ Establish a series of framework agreements and
contracts for all types of procurement
  —   

D Mechanism to ensure that all officers involved in


procurement are aware of the rules affecting
them - local national EU
D Standard template documents covering all
aspects of procurement be produced and made
readily available with controlled revisions
D Series of regular training courses be provided on
the relevant rules and how they work
 
 G 

D ISO 9 and ISO 4 be integrated within


the management framework
D Introduction of e-procurement - set targets to
reduce paper invoices and payments
D A µprocurement savings¶ register
D Strategic performance indicators are
established and systems developed to supply
the necessary information
—   
   
D E
M Business Excellence Score
D Client satisfaction score
D expenditure with approved suppliers
D expenditure under framework contracts
D Number of approved suppliers per TL/ euro of total
expenditure
D Staff costs as of approved expenditure
D Number of complaints/ challenges in period
D total expenditure on procurement cards
D total expenditure by e-procurement
D Number of contracts awarded by e-commerce
D of total expenditure via µpartnerships¶
D total expenditure through local sourcing
D Total estimated savings in period
 
 G  

˜ That the following operational performance


indicators are established and that systems are
developed to collect the necessary supporting
information:
D Average contract management satisfaction score
D Shopping basket price performance
D Average price variation against retail price index
D Average tender response rate
D Average difference between lowest and highest
tender prices
D Number of adverse performance reports in period
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