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‘TOWARDS TESCO’ – A NEW APPROACH TO PROCUREMENT AND SHARED SERVICES Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611

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Presentation on theme: "‘TOWARDS TESCO’ – A NEW APPROACH TO PROCUREMENT AND SHARED SERVICES Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611"— Presentation transcript:

1 ‘TOWARDS TESCO’ – A NEW APPROACH TO PROCUREMENT AND SHARED SERVICES Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611

2 DOMESTICS Mobile Phones Refreshments Facilities Fire Alarm Presentations Available Please Read Speaker Biogs

3 Programme 1100: Bill Longley, MD Civica Revs and Bens 1105: Colin Cram: ‘Towards Tesco’ 1130-1200: Suzie West, Road Map to Shared Services 1200-1230: Organisational Impact of Collaboration 1230: Lunch 1315: Carol Gray, From Partnership to Implementation 1345: John Gibbs, The Civica Shared Services Model 1415: Break 1425: Panel Debate 1450: Closing Remarks 1500 Conference Close and Refreshments

4 My Background Director, North West Centre of Excellence - 47 local authorities Director, Research Councils’ Procurement Organisation Director, North West Universities’ Purchasing Consortium Director, Benefits Agency Contracts Organisation Central Unit on Purchasing Cabinet Office, Treasury, Central Government generally Senior Adviser to Office of Government Commerce Member of Society of Local Authority Chief Executives -SOLACE Fellow of Chartered Institute of Purchasing and Supply Institute of Directors: ‘Towards Tesco’





9 TOWARDS TESCO Backdrop: Public Sector Finances 1. Public Sector Procurement is Vast A New Integrated Model could Deliver Huge Benefits 2. Outsourcing and Shared Services Is Uncoordinated and Costly Huge Potential Remains


11 £220 Billion pa £3,500 per Adult and Child pa One Third of Total UK Public Spending One Sixth of UK Gross Domestic Product (GDP) 0.75% of Global GDP Size makes it Critical to Delivery of Public Services Effective Management is Essential to Reduce Public Spending Deficit and Deliver Government Procurement Policies LOCAL GOVERNMENT PROCUREMENT - £50bn Alone would put UK in top 20% of national GDPs

12 65% Non-Central Government 50% Common Categories, Goods, Services Professional Services £35bn Construction £21bn ICT £10bn Facilities Management £10bn Energy £4bn Reprographics £3bn Travel £3bn Fleet £3bn Food £2bn

13 Some Major Central Government Department Organisations Some Large Specialist Organisations NHS Outsourcing Buying Agencies: 40+ OGC and Category Teams Several Thousand Small to Medium Procurement Units 40,000+ Procurement Points Absence of Mandation BUT Increasing Collaboration/Joint Procurement

14 Indiscipline Different Procedures/Contract Ts and Cs Complexity – e.g. Tender Procedures/Ts and Cs Multiplicity of Tenders Multiplicity of ‘Duplicate’ Contracts and Contract Managers Specifications Inconsistency of Capability, Expertise, Processes ALSO: Inability to use best procurement techniques


16 Furniture 30% FM/Outsourcing/Major Contracts Up to 35% Laboratory Consumables Up to 90% IT 5 – 80% Construction 5 – 25% Excellent Construction Management 5 – 15% Social Care 10% Legal Services 10% Good Contracts Management 5 – 35% © C M Cram

17 Right Procurement Structures/Joint Procurement Common and Complete Databases Common Information/IT Systems Common Procedures Common Specifications Commodity, Markets, Procurement Expertise Specialist Management Best Practice Procurement Techniques

18 PUBLIC SECTOR PROCUREMENT IN 5 YEARS TIME? Central/ Major Departments/ Buying Solutions Industry Specific Regional P Hubs/ Medium Depts Local/Med/ Small Departments Major National Contracts/Suppliers ** Common Categories ** Relationship Management ** Market Management ** Industry Specific ** PPIs/Major Project Support * ** Regional/Large Local Contracts/Suppliers * Small Local Contracts ** Discipline/Implementation/ Compliance ** © C M Cram


20 FACILITATING SHARED SERVICES ELIMINATE OBSTACLES: CREATE MODEL APPROACH Create Range of Model Specifications Create Matrix of Service Providers and Services that the Public Sector can use without further EU Tendering Provide those Services through building on Existing Service Centres/Creating New Ones

21 SERVICES © C M Cram SERVICES SERVICE PROVIDERS 1.2. 3. 4.5. 6. Revs and Bens √√ Call Centres √√√ HR √√ Finance √√√ Construction Services √√ ICT √√√√ Legal √

22 HOW? Create Range of Model Specifications Follow EU Procurement Directives to Create Matrix Evaluation Criteria: Capability Obtain Indicative Prices? Grow Matrix Organically Consider Dynamic Purchasing System

23 MAKING IT HAPPEN Create Steering Group with TORs - membership private and public sectors Commission and Fund Initial Work – to investigate feasibility/sources of funding etc Draft Programme of Work and Implementation Plan

24 Colin M Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611

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