Gaynor Whyles, JERA Consulting Sheffield University November 2014 Low Carbon Vending Services Supplier Meeting

The Central Procurement Company of Lombardy Region Buyers Group (so far)

Towards Zero Carbon Catering Procurement Compact

“Progressively lower carbon catering goods and services” Embedded carbon – beyond operational carbon Reflected in evaluation criteria Make adjustments to the procurement process Enable differentiation on factors other than price

 Using public (and private sector) procurement to stimulate innovation in the economy and improve public services  This usually means changing the way we approach procurement

 Innovation procurement? –Buying goods and services in a way that stimulates the supply chain to invest in developing better and more innovative goods and services to meet the unmet needs of an organisation

Why innovation procurement approach?  Existing solutions and ‘business as usual approaches’ will not deliver what is needed –We need new and innovative solutions - or we will fail  Innovation leaders - both public sector and supply chain - need to set new standards  The Public Sector approach to procurement needs to be better at stimulating, encouraging and enabling innovation.  The tool developed in the UK is Forward Commitment Procurement  Creating new solutions to deliver better public services and support competitiveness of European economy.

Some Case Examples of FCP in Action ERASMUS MC Sustainable Bed Washing Facility ROTHERHAM NHS FOUNDATION TRUST Future Ward Solution NOTTINGHAM NHS TRUST Low Carbon Energy - Fuel Cell CHP ROTHERHAM NHS TRUST People centered low carbon catering RAWICZ COUNTY HOSPITAL Low Carbon UNIFORMS Thermal Comfort for Hospital Patients and Staff Zero Waste Prison Mattress

The buyer-supplier paradox  Suppliers respond to customer demand; Customers tend to buy what is available – rather than asking for what they need……….this leads to ‘more of the same’ and stifles innovation

 In practice? –Cross-departmental engagement in the procurement process –Identify ‘ unmet needs’ - ask for what is needed not what is available –Market engagement and consultation on the specification and approach –Outcome based specifications –Pro-innovation procurement strategies –Use of competitive dialogue, forward commitment, whole life costing, pilots within procurement process, –Buyers Group –develop wider markets in UK and Europe –Whole-life costing / Total cost of ownership

 What we ask of the supply chain –To respond to the unmet needs in a creative and innovative way –Offer tomorrow’s not just today’s solutions –seek out new solutions –stimulate new solutions in the supply chain –ask about opportunities for trialling and piloting –Build in progressive innovation and improvement  Clarifications –Carbon reduction is not the same as environmental sustainability –Embedded / embodied carbon not just operational –Not convinced about Carbon Off-Setting –Innovation low carbon does not mean more expensive –the case of prison mattresses –carbon reduction at Anglian Water

Carbon reduction in the supply chain: UK CLG Member Anglian Water

Carbon emissions – direct and indirect

Product Portfolio Footprinting for your supply chain

“The key to success was to begin by asking for what was needed – not what we thought was available or affordable. The results have exceeded all expectations. FCP really works”. John Cartwright, Director of Estates and Facilities, Rotherham NHS Foundation Trust.

Thank you Questions and comments?

Workshop Session Where is the carbon and opportunities for reduction? What are the opportunities for carbon reduction in the supply of vending services? What are the barriers to delivering a low carbon vending service ? What would support the supply chain to deliver a low carbon vending service? How can our procurement process support on-going supply chain innovation to deliver a progressively lower carbon vending services? What business model would you propose for this contract?