Paul Smith Executive Director YPO 13 June 20161
About YPO Established in 1974 Owned by 13 Local Authorities in North of England Wholesale and Framework Central Purchasing Body No mandate. Competes for all business. Wholesale Business is largest supplier to UK Education 540 employees
About YPO £120m (€150m) wholesale £600m (€750m) frameworks Funded through margin (wholesale) and rebate (frameworks) £10m (€12.5m) profit in 2015 Over £120m (€150m) returned to public sector in dividend
UK Central Purchasing Bodies In 2010 the National Audit Office listed 48 separate Professional Buying Organisations operating in the UK Public Sector. Central Government – Crown Commercial Service Local Government – 15 organisations (including YPO) Health - 15 organisations Education – 10 organisations Devolved Administrations – Wales, Scotland and NI
Institutional Set-up YPO is a collaboration of 13 Local Authorities Managed by a Management Committee of 26 councillors (2 from each member authority) Board of Directors responsible for day to day running 44 Associate Member authorities Benefits shared based on usage Benefits also shared directly with schools
Co-operative Procurement at Municipal Level The Advantages Not mandatory which leads to focus on customer service Addresses local needs of public bodies Competition creates choice Self-funding and profit making Local councils have direct input into strategy
Co-operative Procurement at Municipal Level The Challenges Competition can create duplication and inefficiency Procurement still fragmented Voluntary collaboration takes time and can be fragile Wholesale business requires investment and management
Co-operative Procurement at Municipal Level Business Case Self-funding through margin and supplier rebate Competition means only successful if it meets the customer needs Report success to members on 3 different measures: - Savings - Dividend - Local spend and social value
What we buy Wholesale (30,000 products / £120m) School supplies Stationery Cleaning products Office and Classroom Furniture Food IT Sports Equipment Frameworks (100 in total / £600m) Energy Vehicles IT and Software Temporary Labour Food and Catering Insurance Business Travel
How we engage with customers Wholesale Website Catalogues Sales and Marketing Events Frameworks Category Councils Requirements Workshops Roadshows and Events Marketing Website User Guides Further Competitions
Work in collaboration with Crown Commercial Service on national categories such as IT, Insurance and Travel. YPO represent the needs of local government and engage owners and customers in this market for CCS. Each collaboration is underpinned by a commercial agreement. Also engage with other CPBs in key spend categories. How we engage with Central Government