Procurement Reform: The Need for Better Supply Chain Management John Collington Chief Procurement Officer

Points to Cover The Need for Reform Our Strategy & Targeted Outcomes Progress/Performance to Date Procurement Supporting Growth

The Need for Reform From 09/10 Baselines: Not leveraging our purchasing spend Procurements too complex and long Too much reliance on consultants ‘Big was beautiful’

B Strategy & Key Targeted Outcomes Ministerial Buy In and Commitment  Increase in spend through GPS  Higher % of CS staff trained  Deployment of enabling technology  Reduction in sourcing time & cost  More contracts & spend with SMEs  Sustainable savings through CSR  Better perception of Procurement! Deficit Reduction + UK Growth = Burning Platform

Progress to Date Full Ministerial commitment & support £3.75bn savings achieved in the first year £1.4bn on CCL : £800m through CCR work Lean Standard Operating Procedures Enabling technologies being implemented Transparency driving behavioural change>>>

e.g. New Contracts Awarded to SMEs <5% >40%

Managing the Balance is Challenging but Achievable! Savings & Value from Every £ Spent More Business with SMEs

This slide should not be shown it is a marker for the video clip to be played, once the video has finished you should immediately move onto slide 9.

Just Some of the SME Successes

UNCLASSIFIED Whitehall's £1.1bn UK travel needs handed to small business. In a sign that the Government is serious about handing more work to small businesses, Whitehall.....has awarded the domestic part of a potential £2.6bn contract to Yorkshire-based Redfern Travel. Friday 18 th September

Procurement Supporting Growth Sharing ‘pipeline’ opportunities Pre procurement market engagement Investment: sourcing & supplier management Simplified procurement processes: 120 days Procurement supply chain management

Supply Chain Management Thought & planned for - pre procurement Can and will include supplier development Open & fair opportunities for SMEs to compete Visible and managed tiers - no longer ‘hidden’ through the prime Will apply to projects, sectors & categories>>>

e.g. For Government ICT Government CIO Government CPO Supply Management Joint programme - highest level governance & ambitious targets Focused on transparency, standards and new ways of working Will deliver new supply routes, contracting vehicles & better re- use, more SMEs and savings

In Closing: Key Messages for Today Procurement Reform is making a difference, but still has a way to go We are committed to making procurements faster, easier & more transparent We are improving our procurement capability in people and technology Procurement and Supply Chain Management can and will be better leveraged to support Growth