towards tesco: taking the cost out of public sector

advertisement

Colin Cram

Marc1 Ltd colin.cram@marc1ltd.com

Tel: 01457 868107

Mob: 075251 49611 www.Marc1ltd.com

£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

£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

65% Non-Central Government

50% Common Categories, Goods, Services

Professional Services £35bn

Construction £21bn

ICT £10bn

Facilities Management £10bn

Energy £4bn

Reprographics £3bn

Travel £3bn

Fleet £3bn

Food £2bn

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

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

© C M Cram

PUBLIC SECTOR PROCUREMENT: THE FUTURE?

INTEGRATION

COLLABORATION

INDEPENDENCE

© C M Cram

REPOSITIONING PROCUREMENT

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

Thankyou

© C M Cram

Download