Procurement Reform:
The Need for Better
Supply Chain Management
John Collington
Chief Procurement Officer
Points to Cover
• The Need for Reform
• Our Strategy & Targeted Outcomes
• Progress/Performance to Date
• Procurement Supporting Growth
The Need for Reform
From 09/10 Baselines:
• Not leveraging our purchasing spend
• Procurements too complex and long
• Too much reliance on consultants
• ‘Big was beautiful’
Strategy & Key Targeted Outcomes
Ministerial Buy In and Commitment
Increase in spend through GPS
Higher % of CS staff trained
Deployment of enabling technology
B
Reduction
in sourcing time & cost
More contracts & spend with SMEs
Sustainable savings through CSR
Better perception of Procurement!
Deficit Reduction + UK Growth = Burning Platform
Progress to Date
•
Full Ministerial commitment & support
•
£3.75bn savings achieved in the first year
•
£1.4bn on CCL : £800m through CCR work
•
Lean Standard Operating Procedures
•
Enabling technologies being implemented
•
Transparency driving behavioural change>>>
e.g. New Contracts Awarded to SMEs
>40%
<5%
Managing the Balance is Challenging
but Achievable!
More
Business
with SMEs
Savings &
Value from
Every £
Spent
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Just Some of the SME Successes
Friday 18th September
Whitehall's £1.1bn UK travel needs handed
to small business.
In a sign that the Government is serious
about handing more work to small
businesses, Whitehall.....has awarded the
domestic part of a potential £2.6bn contract
to Yorkshire-based Redfern Travel.
UNCLASSIFIED
Procurement Supporting Growth
•
Sharing ‘pipeline’ opportunities
•
Pre procurement market engagement
•
Investment: sourcing & supplier management
•
Simplified procurement processes: 120 days
•
Procurement
supply chain management
Supply Chain Management
•
Thought & planned for - pre procurement
•
Can and will include supplier development
•
Open & fair opportunities for SMEs to compete
•
Visible and managed tiers - no longer ‘hidden’
through the prime
•
Will apply to projects, sectors & categories>>>
Government
CIO
Supply
Management
e.g. For Government ICT
Government
CPO
• Joint programme - highest level governance & ambitious targets
• Focused on transparency, standards and new ways of working
• Will deliver new supply routes, contracting vehicles & better reuse, more SMEs and savings
In Closing: Key Messages for Today
•
Procurement Reform is making a difference, but
still has a way to go
•
We are committed to making procurements faster,
easier & more transparent
•
We are improving our procurement capability in
people and technology
•
Procurement and Supply Chain Management can
and will be better leveraged to support Growth