1. Ruth Brothwell Supply Chain Manager Supply London

2. Buyers do NOT want
to buy from you!

3. Unless……!

6. Annual purchasing spend of public sector in the UK estimated
as £450 billion p.a.
Central Government is £13 billion p.a.

7. Local Authorities
Central Government Departments and Agencies
Schools, Colleges and Universities
National Health Service
Emergency Services
Transport (e.g. TFL, Crossrail)
Museums, Libraries and Galleries
Housing Associations

8. 500 Local Authorities in England & Wales
335 UK Universities
24,000 State & Independent Primary Schools
3,500 Secondary Schools
300 NHS Trusts
4500 Housing associations/RSLs
40 Police Services
40 Ambulance Services
60 Fire Services
25 Government Departments

9. cropp

10. Olympic Tender Expressions of Interest 1274 PQQ submissions 700
Suppliers submissions
381
Being evaluated:
Lot 4 – litho 89
Lot 5 – digital 67
Lot 6 - stationery 48

11. Olympic Tender Being evaluated: Lot 4 – litho 89 Lot 5 – digital 67
Lot 6 - stationery 48
Going to tender: 5 – 10 per lot

12. 500 Local Authorities in England & Wales
335 UK Universities
24,000 State & Independent Primary Schools
3,500 Secondary Schools
300 NHS Trusts
4500 Housing associations/RSLs
40 Police Services
40 Ambulance Services
60 Fire Services
25 Government Departments

13. Southwark Council Spend/Tender limits Procedure £0-5,000
Purchase Order
£5,000-49,999
3 Written Quotations
From £50,000
Advertised Tender
Over £144,371
EU tender

14. Bexley Council Spend/Tender limits Procedure £1 – 50,000
Competitive Quotes
£50,000 - £144,371
Advertised Tenders
Over £144,371
EU Tender

15. Greater London Authority
Spend/Tender limits
Procedure
£0-4999
Purchase Order
£ ,999
3 Quotes
15,000-24,999
3 Written Quotes
25,000-49,999
Mini Tender
From £50,000
Full Tender
Over £144,371
EU tender

16. Proportionality Rule:
Contracts are unlikely to be awarded
that represent more than 20-25%
annual turnover
Risk mitigation for buyers

17. GLA
TRANSPORT
FOR LONDON
East London Line
DLR extension

18. GLA Balfour Beatty Carillion TRANSPORT FOR LONDON East London Line
DLR extension
Balfour Beatty
Carillion

19. Balfour Beatty Carillion
Railway Design
Scott Wilson
Bachy
Solentanche
Piling
Signals
Westinghouse
Balfour Beatty Carillion
Fairfield Mabey
Thales
Steel
Telecomms
Mansells

20. Tiered Supply Chains Where do you fit into the supply chain
Public Sector
Buyer
Office Support
Contract
Marketing
Consultancy
Translation
Printing
Uniforms
Recruitment
consultancy
Use examples to explain how tiered supply chains work, and help the delegates identify where they would fit in to the supply chain.
For small groups, it is worth taking the time to go through each company (or type of company) individually to help explain whether or not they are likely to be first-tier suppliers. Lots of organisations will never become first tier suppliers to the public sector, and therefore they do not need to attend the rest of the workshops.
For example, a company that manufactures door handles will probably not be a direct supplier to a local authority. The first tier supplier might be an FM company, who might subcontract work to a joinery or fit-out company, who would probably buy their door handles from a builder’s merchants. The manufacturer would need to supply the builder’s merchant, or maybe the joinery company, but the local authority would not be purchasing directly.

25. This serves the purpose of fairly reducing the number of
competing suppliers to a manageable number

27. It’s not about supplying a great product or service
It’s about being a great supplier!!!

35. It’s not about supplying a great product or service
It’s about being a great supplier!!!

36. Selling Your Business Be very clear about:
Your advantages and unique selling points
What makes your business the best choice for this particular opportunity?
“Local” by itself is not an advantage, but how about:
Fast response time leading to better service
Allows customers to change their requirements at short notice
Improved environmental impact of shorter travel distance
Specialised knowledge of local issues or local communities
Others?

37. You must have your 4 key policies!
“Small” public sector contracts can still be up to £94k or more in value
Commissions below the thresholds can often be secured with quotations and proposals rather than full tenders
Many smaller contracts are placed via Approved Supplier Lists and/or Framework Agreements
You must have your 4 key policies!
Get the group to summarise learning points onto a flip chart
Learning outcomes should be:
What are the thresholds for larger contracts
How a stepped procurement process works
What is an Approved Supplier List and how does it work?
What is a Framework Agreement and how does it work?
What is OGCbuying.solutions and how can I become a part of an OGC framework agreement?

38. Ruth Brothwell
Supply Chain Manager
Supply London