Improved procurement through
Supplier Spend Analysis
Introduction
• Overview of Spend Analysis Project
• Benefits of Spend Analysis
• FE Procurement Development Team – Carl
Johnson, AOC
• Bournville College – Karen Stanwell, Procurement
Manager
• Costs & Options
• Other Procurement Services
2
Overview of Spend Analysis Project
• 70 Colleges/13 Collaborative Groups
• Savings identified
• Cashable – over £3m
• Non Cashable - over £5m
• Spend Analysis Lite & Spend Analysis Advanced
• Online Tool
• Report (optional)
• Onsite Visit (optional)
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Benefits of Spend Analysis
• Obtain effective management information and insight into
spend
• Identify potential cashable & non cashable savings
• Aggregate spend to highlight major suppliers and categories
of spend
• Compare, benchmark and highlight opportunities for
collaboration with other colleges
• Help compliance with EU Directive
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FE Procurement Development Team
Why are we support spend analysis?
• Starting point for procurement
• Operational Efficiency Programme (OEP)
Has the spend analysis project been a success?
• Commissioned a review of the project
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FE Procurement Development Team
Findings (based on 52 of the 74 colleges)
• 6 million pounds of potential cashable and non cashable
savings highlighted.
• Over 2.5 million of these savings have been realised one
year on.
• Key spend area’s highlighted were Examinations, Energy,
IT Hardware, Insurance and Advertising.
• Lessons learnt
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FE Procurement Development Team
Highlights
• FE Sussex work on Exams (400k)
• Wigan & Leigh college purchasing energy via YPO (95k)
and Insurance via CPC (40k)
• Solihull college OGC e-Auction for IT (25%)
• Cirencester college using Buying Solutions MFD contract
(5k per year plus added value products)
• Bournville College
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Bournville College
• My College
• Cashable and Non Cashable savings
• The Collaborative Group
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Costs & Options
•
•
Spend Analysis Lite
• Online Tool - £1750
• Action Plan (optional) £195
• Onsite Visit (optional) £240
Spend Analysis Advanced
• Online Tool - £3500
• Action Plan (optional) £300
• Site Visit (optional) £240
•
Risk Reward Model
• Online Tool - £5000
• Action Plan (optional) £400
• Site Visit (optional) –
£300
9
Other Procurement Services
• PQQ Services
• Supplier Accreditation
• Procurement Services
• E-auctions
• Cost Reduction - Utilities
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