Colin Cram
Marc1 Ltd colin.cram@marc1ltd.com
Tel: 01457 868107
Mob: 075251 49611 www.Marc1ltd.com

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£220 Billion pa
£3,500 per Adult and Child pa
One Third of Total UK Public Spending
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• One Sixth of UK Gross Domestic Product (GDP)
0.75% of Global GDP
• Size makes it Critical to Delivery of Public Services
• Effective Management is Essential to Reduce
Public Spending Deficit and Deliver Government
Procurement Policies
EDUCATION PROCUREMENT £30+bn
Alone would put UK in top 30% of national GDPs

•
•
•
£220 Billion pa
£3,500 per Adult and Child pa
One Third of Total UK Public Spending
•
• One Sixth of UK Gross Domestic Product (GDP)
0.75% of Global GDP
• Size makes it Critical to Delivery of Public Services
• Effective Management is Essential to Reduce
Public Spending Deficit and Deliver Government
Procurement Policies
EDUCATION PROCUREMENT £30+bn
Alone would put UK in top 30% of national GDPs

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• 65% Non-Central Government
50% Common Categories, Goods, Services
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• Professional Services £35bn
Construction £21bn
ICT £10bn
Facilities Management £10bn
Energy £4bn
Reprographics £3bn
Travel £3bn
Fleet £3bn
Food £2bn

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• Some Major Central Government Department Organisations
Some Large Specialist Organisations
NHS Outsourcing
Buying Agencies: 40+
OGC and Category Teams
Several Thousand Small to Medium Procurement Units
40,000+ Procurement Points
•
BUT
Increasing Collaboration/Joint Procurement

• Indiscipline
• Different Procedures/Contract Ts and Cs
• Complexity – e.g. Tender Procedures
• Multiplicity of Tenders
• Multiplicity of ‘Duplicate’ Contracts and Contract Managers
• Inconsistency of Expertise/Capability/Processes/Procedures
• Specifications

Varied Specifications/Reinventing the Wheel
Indiscipline/Disaggregation
Duplication
Inconsistency of Expertise, Processes and Procedures
AND cannot use industry best practice supply management

Furniture 30%
FM/Outsourcing/Major Contracts Up to 35%
Laboratory Consumables Up to 90%
IT 5 – 80%
Construction 5 – 25%
Excellent Construction Management 5 – 15%
Social Care 10%
Legal Services 10%
Good Contracts Management 5 – 35%
© C M Cram

• Right Procurement Structures/Joint Procurement
• Common and Complete Databases
• Common Information/IT Systems
• Common Procedures
• Common Specifications
• Commodity, Markets, Procurement Expertise
• Specialist Management
• Best Practice Procurement Techniques

PUBLIC SECTOR PROCUREMENT IN 5 YEARS TIME?
Central/ Major
Departments/
Buying
Solutions
Industry
Specific
Regional P
Hubs/
Medium
Depts
Local/Med/
Small
Departments
Major National
Contracts/Suppliers
* *
Common Categories
Relationship Management
Market Management
Industry Specific
PPIs/Major Project Support
Regional/Large Local
Contracts/Suppliers
Small Local Contracts
Discipline/Implementation/
Compliance
*
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© C M Cram

PUBLIC SECTOR PROCUREMENT: THE FUTURE?
INTEGRATION
COLLABORATION
INDEPENDENCE
© C M Cram

REGENERATION MARKET ENGAGEMENT
CONSTRUCTION
ROADS
MAINTENANCE
SCHOOLS
MAINTENANCE
TRAINING LOCAL
LABOUR
X PROCUREMENT
WHERE IS MARKET ENGAGEMENT
MOST EFFECTIVE?
© C M Cram

Colin Cram
Marc1 Ltd
Tel: 01457 868107
Mobile: 075251 49611 colin.cram@marc1ltd.com
www.marc1ltd.com
© C M Cram