1. Procurement Manager April 2009 New Stationery, Paper and IT Consumables Contracts Alan Gray University Purchasing Services Robert Bryce and Wendy Kidston Lyreco UK Ltd Richard Thaxter and Jack Stephenson Spectrum Computer Supplies Ltd Presented by

2. Procurement Manager April 2009 Session Content Welcome and introductions Background: The McClelland Report and subsequent major changes within Scottish public sector procurement Implications for the present and foreseeable future The new contracts: coverage, value for money and operational aspects Introduction by Lyreco; demonstration of online ordering system Introduction by Spectrum; web site demonstration Questions and Answers

3. Procurement Manager April 2009 Reform of Scottish Public Procurement McClelland Report - 86 recommendations including: Public Procurement Reform Board appointed to oversee and report on progress in all areas Requirement for increased collaboration among all areas of Scottish public purchasing Scottish Procurement Directorate to negotiate contracts for goods/services common to all areas (Category ‘A’) Establishment of new Centres of Expertise to handle sector-specific contracts, e.g. APUC which serves HE & FE (Category ‘B’) All sectors to adopt and implement a common eProcurement platform (PECOS) “While the public sector is doing well in many areas, there is undoubtedly room for considerable improvement. Action is needed to ensure we drive up standards in the way the public sector procures goods and services to ensure we spend taxpayers' money as wisely as possible” Tom McCabe, Finance and Public Service Reform Minister, March 2006

4. Procurement Manager April 2009 Reform of Scottish Public Procurement McClelland Report Procurement Scotland Category ‘A’ contracts, e.g. stationery, computers - to be used by ALL Scottish Public bodies Public Procurement Reform Board Efficient Government Programme (£600M savings target for 2009-10) HE/FE (APUC) Higher & Further Education (APUC) Category ‘B’ contracts, e.g. laboratory supplies, library books Health Service (N H S National Procurement) Scottish Government Departments (CGCoPE) Local Authorities (Scotland Excel) Sector-specific Centres of Expertise University Category ‘C’ contracts e.g. scientific equipment; specialised professional services and all goods/services not covered by ‘A’ or ‘B’ Further CoEs under development for ‘blue light’ services (Fire, Police, etc)

5. Procurement Manager April 2009 Implications and Future Considerations Substantially increased pressure on all public bodies for: Expenditure savings Efficiency and process savings Support of collaborative purchasing initiatives and activities at national, regional and local levels to maximise purchasing power/benefits and reduce duplication of effort Accountability and reporting (BPIs) Legislative compliance (EU/Public Contracts Regulations) Transparency and fairness in all dealings with supply markets

6. Procurement Manager April 2009 The New Stationery (etc.) Contracts - General Aspects Category ‘A’ agreements negotiated by Procurement Scotland for use by all areas of the Scottish public sector Pre-contract consultation program. Input and information obtained from all areas of Scottish public sector via their Centres of Expertise and incorporated into the contract requirement Demand and expenditure levels far exceed existing or previous contracts within the individual sectors (HE contract c. £80M; Proc Scot contract c. £120M - £160M) Significant purchase cost reductions Paper and stationery from one source will reduce the numbers of orders, invoices and deliveries There is a clear requirement and expectation that these contracts will be utilised to the full by all public sector organisations in Scotland. Non-participation will be questioned and full justification sought

7. Procurement Manager April 2009 The New Stationery (etc.) Contracts - General Aspects COMMODITYEXISTING SUPPLIERSNEW CONTRACTED SUPPLIER General StationeryOffice DepotLyreco Office PapersGlenmore/Robert HorneLyreco IT ConsumablesSupplies Team XMA Spectrum More emphasis on contract demarcation: Spectrum cannot supply Paper or Stationery IT Consumables should not be ordered from Lyreco - within reason Blocking systems in place for non-contract items such as furniture, etc.

8. Procurement Manager April 2009 New Stationery Contract - Projected Expenditure Savings

9. Procurement Manager April 2009 New Paper Contract - Projected Savings

10. Procurement Manager April 2009 New IT Consumables Contract – Projected Expenditure Savings

11. Procurement Manager April 2009 New Stationery and Paper Contracts - Ordering/Invoicing Procedures LYRECO web ordering and consolidated invoicing system set up to virtually replicate past/current arrangements with Office Depot. Budgetary codes, Departmental contact details, delivery addresses, etc. updated and passed to Lyreco for system setup. (If you have not yet filled in the internal form, please do so as soon as possible)the internal form, Effective switchover date - 5 May 2009 Departmental monthly detail/cross-check statements will now be sent by email. New PECOS eProcurement system cannot presently accommodate our requirements for consolidated invoicing therefore it has not been possible to load the Lyreco catalogue.

12. Procurement Manager April 2009 New IT Consumables Contracts - Ordering/Invoicing Procedures A variety of ordering options are available when purchasing from SPECTRUM Via PECOS. Spectrum is classed as a ‘Catalogue’ supplier and all required information has been made available on the new system Until PECOS is ‘rolled out’ to all Departments, various options are available: Telephone Fax Post By email or from the Spectrum web site using a University Purchase Order Number (This would require to be set up for you prior to first use) Purchasing Card NOTES: Purchase Orders posted to confirm previously telephoned or faxed orders must be clearly marked “Confirmation Only” to avoid duplication If ordering frequently, the Standing Order option should be used wherever possible to simplify the process and minimise paperwork