Commodity Profile & Strategy for the [Contract /
Framework Agreement] for: [insert]
Reference: [insert]
For info – delete text prior to issue
This strategy document is also commonly referred to as a procurement or purchasing strategy.
The strategy is used in the planning stage of any procurement to determine how key issues will be
addressed e.g. route to market, CSR issues, pricing strategy etc which is then translated into the
procurement process and documentation
It identifies and minimises risk and assists in ensuring all key factors have been taken into account
when conducting the procurement leading to fit for purpose and VFM.
The term ‘commodity’ is a common procurement terms used to refer to any purchase.
© APUC LIMITED 2009- See terms of permitted use on the Sector Procurement Manual’s Home page
Slide 1
Version Control
Version
Name
Date Completed
Comments
When drafting and amending the Profile & Commodity Strategy, the Procurement Officer should complete the above table to ensure
changes can be tracked and queries can be directed to the appropriate User Group member/others as appropriate
Slide 2
Procurement Decisions & Authorisations
Complete from the Decision Tree questions prior to completing rest of Strategy
Can you
utilise an internal,
unused or now
surplus to
requirements
resource? E.g.
AUPO surplus
equipment
scheme.
Requirement to be
procured as a Cat C
or C1 [insert which
applies]?
No
Estimated Cost [insert £
value excl VAT]
Yes
Record & retain
decision for audit
trail, abort planned
procurement and
delete remainder
of Strategy slides
Budgetary Authority:
approval obtained by
[insert name & date]
Purchasing Authority:
approval of Procurement
Officer to procure the
requirement given [insert
name & date].
Proceed with completing
Commodity Strategy
Slide 3
Contents:
Except where stated as optional, below is the recommended mandatory minimum contents of the Profile & Commodity
Strategy. Other slides can be added on a commodity specific basis as appropriate. Further slides are contained in the
Scottish Public Sector Toolkit
Contents
• Version Control
•Procurement Decisions and Authorisations
• Consultation with HoP (delete slide prior to issue for signoff)
• Executive Summary
• User Group role & Input
• Stakeholder Contacts
• Business Requirements
•Scope
• Expenditure Analysis
• Total Cost Model (OPTIONAL)
• Supply Market Overview
• Benchmarking Opportunities
• Risk Analysis - Including Barriers to Change
• Corporate Social Responsibility
• Strategic Tendering Options
•Prior Information Notice
• ITT Considerations
• Information re evaluation of references, site visits & presentations
•PQQ/Tender Award & Weighting Criteria
• Contract Implementation
• Strategic Contract Management
• Commodity Project Plan
• Commodity Life Cycle & Technology Roadmap (OPTIONAL)
• Supply Chain Considerations (OPTIONAL)
• Sign-Off
Slide Number
2
3
5
6
7
8
9
10
11
15
17
21
22
23
26
28
29
31
32
35
37
38
39
40
41
Slide 4
Recommended consultation with the Head of Procurement
Procurement Officers should seek advice from the HoP in the following
circumstances:
 where Single Tender Action (non competitive action) is proposed
 where a procurement has a strong potential to influence CSR issues
 where an extension to a contract or framework agreement is proposed
 where the negotiated procedure, competitive dialogue, or dynamic purchasing system is the proposed
tendering option
 where it is proposed to shorten the EU minimum tendering timeframes or use the Accelerated Restricted
procedure (NB use of the Accelerated Restricted MUST be highlighted in the Contract Notice. For further
information about the Accelerated Restricted Procedure please refer to this Scottish Procurement Policy
Note (SPPN 1 2009): http://www.scotland.gov.uk/Resource/Doc/1265/0076383.pdf)
 where it is proposed that the duration of a framework agreement will exceed 4 years
 where TUPE may apply
Slide 5
Executive Summary –
Procurement Officer to complete this slide after completion of the Strategy
and prior to forwarding for agreement by the User Group and sign off by the Head of Procurement
 Current status: [list]
 Spend – total versus addressed:
 Scope:
[list]
[detail]
 Strategic recommendations and reasoning:
[detail]
 Benefits – how much, how, by when?
 Examples:

Price parity opportunities of £a achievable by DATE

Benchmarking opportunities of £b achievable by DATE

Market competitiveness £c by DATE

Product standardisation/ rationalisation potential of £d, assuming xyz by DATE

Supply chain redesign, moving to ex-works, £e by DATE
 Any major barriers to success: [detail]
Slide 6
User Group Role & Input
Procurement Officer to agree with the User Group their role,
responsibilities, input and actions at each stage in the
strategic sourcing process e.g.
 Procurement Officer to agree with the User Group who will agree the final draft of the key stage
documentation e.g. all or a nominated number of User Group members re the strategy, award
recommendation etc
 [if applicable]: Procurement Officer to agree with the User Group the role User Group members will
play in PQQ evaluation [insert] e.g. Procurement Officer to evaluate all sections of PQQs and the
User Group to evaluate Part E only
 PPS to agree with the User Group the role the User Group members will play in ITT evaluation
[insert] e.g. Procurement Officer & User Group (or nominated individuals) to evaluate technical
aspect of tenders and Procurement Officer to evaluate commercial aspects etc.
 PQQ/ITT results will be revealed by the [overall weighted results/ the average] of Tender Evaluation
Board scores etc
Refer to:
 User Group Interface Model - detailing actions required in the various stages in the procurement
process
Slide 7
Stakeholder (& User Group) Contacts for [Contract/Framework Agreement]
 List names and contact details of all stakeholders relevant to this commodity:
Name
Job Title
Division
Contact Tel
E-mail
Slide 8
Business Need and Functional Requirements
Institution Requirements
Where we are…
 What does the commodity do, standard v
customised, level of customisation, quality
requirements, real v perceived function, service
requirements, user perception, value to
institution, specific specifications
Where we want to be
 NB use of generic specifications – if these
don’t exist the User Group needs to start
working on them as soon as possible
 Consider the procurement innovation issues
for highly complex procurements
XXXXXX
Slide 9
Scope of [Name of Commodity]
 Scope the commodity to be covered i.e. what is included in this commodity group, breakdown into subcommodities, which products fall under which sub-commodity.
•Detergents
Cleaning Materials
•Disinfectants
•Oven Cleaner
•Deodoriser
•Furniture Cleaning Products
•Soap Powder/Tablet for dishwashing
•Alcohol / Detergent Wipes
•Floor Pads
•Cleaning Bucket
•Brush’s
•Mop’s and associated equipment
•Disposable gloves – PVC / Marigold,
Cleaning Equipment
initial discussion with medical category
identify a potential to purchase from
medical contract
Cleaning and
Laundry
•Cleaning & Hygiene systems
for kitchen and general cleaning
Hygiene Care Plans
Laundry Chemicals
• Laundry Detergents
• Laundry Conditioners
• Laundry Bleach
Potential Future
Developments
Slide 10
Expenditure Analysis - Spend Distribution
 In scope spend broken down by supplier and by sub-commodities: [detail]
 What is the value of the requirement? How does this inform the procurement process?
Procurement Officer to add an acknowledgement, for future reference, of the source(s) of data used:
Slide 11
Future Expenditure Trends
 Demand Profile: [insert]
Slide 12
Spend Analysis & Conclusions
 Demand Profile: [insert]
Slide 13
[Commodity] - Typical Cost Breakdown
Recommendations
Profit 10%
Complete the breakdown for the
commodity
 What are the recommendations
xxxx
Slide 14
Total Cost Model [Name of Commodity] (OPTIONAL)
 List the activities carried
out under each step of
the product life cycle,
Determine the impact of
each step on the total
cost of ownership in
terms of High, Medium or
Low, Brainstorm the cost
drivers associated with
the activities under each
step, Determine the
opportunities in each
area. Which costs can be
reduced
(savings)/avoided (cost
avoidance)?, Identify
Low, Medium and High
Savings Opportunities,
Identify the barriers and
enablers related to
realising the
opportunities
Raise Need
Acquire / Order
Use
Dispose
Activities:
















Impact:
(on TCO )
















Cost Drivers:
















Savings
Opportunity:
















Barriers:
















Enablers:
















Slide 15
Total Acquisition Cost (OPTIONAL)
Example acquisition costs:
Supplier Costs
Product
Driven
Costs
•Material
• Labour
•Overheads
•Warehousing
•Special tooling
Customer
Driven
Costs
Organisation’s Costs
Total Acquisition Costs
Order
Fulfilment
Costs
Administra
tion
Costs
•Quality
•Inventory handling
specifications
•Defects/rejects/retur •Transportation
•Picking & Packaging
ns
•IT Costs
•Customer support
•Sales
•Requisition to P/O
•Order Transmission
•Expediting
•Invoice
Reconciliation
•Timely Payment
•Queries
•Reporting
Sample Cost Drivers
Order
Fulfilment
Costs
•Defects
•Inspection
•Rejects
•Repackaging
•Reshipping
Order
Fulfilment
Costs
•Storage costs
•Labour
•Overheads
Order
Fulfilment
Costs
•Goods receipt
•Delivery
•Requisitions

Uniform specification and
range

Delivery frequency and
location

Order frequency

Order value

Requisition to P/O

Returns

Queries

Reporting

Goods receipt

Sewing Rooms

Delivery
Cost Drivers e.g:
•Product specification and range
• Delivery frequency and location
•Order frequency
•Order value
•Lead time
Slide 16
Supply Market Overview
 Market Trends – detail what is happening in the market for the commodity, current and future technologies,
changing customer demands, new players, mergers and acquisitions
 Supply Market Share – detail the key players within the industry, identify size in terms of turnover, sales, number
of customers and capacity
NOTE: trends are important - they reveal:
•who is winning/ losing business
•who’s trying to win market share in the UK
•whose business objectives match the sector
•what do profit margins typically look like for the industry
Slide 17
Current Contract Position– [Contract/Framework Agreement]
Contract
Contract Value Contract Start/End
Dates (plus any
extension period (s)
Comments
Slide 18
Current Suppliers of [Name of Commodity] to Institution
Current Suppliers of [Name of Commodity]
Supplier
Spend
Total Revenue
Background on the Supplier
xxx
 xxx
 xxx
 xxx
xxx
 xxx

xxx
 xxx
xxx
 xxx
 xxx
 xxx
xxx
 xxx

xxx
 xxx
xxx
 xxx

xxx
 xxx
Slide 19
Main Suppliers in the Market in Context of their Total Institution
Business
Supplier
Institution
Spend on
Commodity
Institution Total
Spend
Other commodities supplied; recent Institution business
awards or losses; other business they are tendering for…etc
xxx
 xxx
 xxx
 xxx
xxx
 xxx

xxx
 xxx
xxx
 xxx
 xxx
 xxx
xxx
 xxx

xxx
 xxx
xxx
 xxx

xxx
 xxx
Slide 20
Benchmarking Opportunities
 Look to understand opportunities from: what the Institution currently pays; and, from
benchmarking with other organisations e.g. PASA, Value Wales, N Ireland Procurement
Service, OGC, Scotland Excel, councils, fire and police service, private sector etc
Product
Pasa Price
NHSS
Price
Notes
Apron Yellow 25mu
1.90
1.82
-
Apron Clear 20mu
1.57
1.77
-
Apron Blue 20mu
1.90
1.82
-
Yellow Clinical
Waste 26mu
12.48
15.93
-
Black Houshold
waste bag
12.66
10.08
PASA currently use only the
30&40mu, NHSS use
50,40&30mu. Those Health
Boards that are using the
50&40mu are currently being
identified with a view to
standardising to the 30mu
Slide 21
Risk Analysis for [Name of Commodity] Inc Barriers To Change
Risk Analysis
Description of Risk
 xxx
Probability of
Implications to Institution
Risk
 High / Medium /  xxxx
Low
Measures to
Minimise / Eradicate Risk
 xxxx
 xxx
 xxxx
 xxxx
 xxxx
 xxx
 High
 xxxx
 xxxx
Slide 22
Corporate Social Responsibility (CSR)
Procurement Officer & User Group to consider CSR issues relevant to this
procurement:
 General issues: [list]
 Result of the Risk Coding Analysis for [goods/services] regarding relevance and
risk: [detail results: Equality: X, Environmental/Sustainable: X , WEEE/disposal: X, Social issues: X ] and the impact will be managed by [detail]. NB: The risk
coding analysis results inform the degree of relevance and risk in the above 4 areas associated with the commodity being procured. Taken together with the
outcome from completion of the SPRAT (see below), this will enable the PPS/User Group to accurately target these areas in the PQQ/ITT CSR Questionnaire.
 Completion of the Sustainable Procurement Risk Assessment Tool (SPRAT) for
[goods/services]: The resulting actions are required to be managed by [detail] NB: areas may already be adequately covered by the existing
CSR questions.
 PQQ CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require
completion by PQQ applicants
 ITT CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require
completion by tenderers
 CSR Guidance from Scottish Government and EAUC resource bank
 ITT Statement of Requirements: consider the applicability of the Buy Sustainable-Quick Wins product specifications detailed in
SPPN 15/2008. NB: these contain a set of sustainable specifications covering a range of commonly purchased products and are considered best practice

* Part of the AUPO revised CSR Toolkit (the Risk Coding Analysis and SPRATS have been created by the Environment Agency on behalf of the UK Government)
Slide 23
CSR
 SMEs, Supported Businesses & Social Enterprises* including
Social Issues** & Community Benefits:
 barriers to participation identified as: [insert]. The proposal for removing barriers to
participation is [detail] e.g. lotting, sub-contracting opportunities, consortium member etc.
 Further information relating to SMEs is contained in SPPN 2/2009 and SPD Buyer’s Guide.
 Identification of any social clauses or community benefits relevant to this procurement: [list]
NB: areas may already be adequately covered by the existing PQQ/ITT CSR Questionnaire.
 Reserved Contract under Regulation 7 of the EU Procurement
Regulations: applicable to the contract/framework agreement?: [Yes/No] and brief reason if
not [detail]. Refer to Paragraph 3.5 of the Procurement Manual for guidance.
*refer to Procurement Manual for information on supported businesses and social enterprises.
** social issues might broadly be defined as issues which impact on society or parts of society and cover a range of
issues including equalities issues (i.e. age, disability, gender, race, religion and sexual orientation), training issues,
minimum labour standards and the promotion of small and medium-sized enterprises (SMEs), including black and
minority ethnic enterprises and the third sector including social enterprises. Refer to SPPN 03 2008 for
community benefits guidance or SPPN 06 2007 for social issues guidance
Slide 24
CSR

Race Equality – Impact Assessment
To determine whether race equality is a core requirement in a contract or framework agreement for goods,
services or works, the following questions should be considered:
1.
What is to be provided under the contract or framework agreement? [list]
2.
Is the provision of the goods, services, or works one of the functions or policies relevant to meeting the duty to
promote race equality? [Yes/No]. Refer to Section 6 of the Procurement Manual
3.
Is the provision of the goods, services or works likely to affect (directly or indirectly) the ability to meet the duty to
promote race equality? [Yes/No]
4.
Is it necessary to include requirements for promoting race equality in the contract to make sure the duty is met?
[Yes/No]
5.
What race equality requirements are appropriate for the contract or framework agreement? [list]
If the answer to questions 2, 3, or 4 is ‘Yes’, race equality is a core requirement. Refer to paragraph 3.7 of
Procurement Manual which details how and where race equality should be implemented into the strategic
sourcing process.
Slide 25
Strategic Tendering Options
 On the basis on the internal and external analysis, plus
opportunity assessment, detail the available options and the
pros/cons of each. Several examples are detailed below:
 Option 1: Extend current contract (if provision within contract to do so)
 Pros: analysis shows limited opportunity in this area compared with rest of portfolio, would
achieve savings whilst minimising resource effort;
 Cons: will not optimise savings as suppliers looking for volumes commitments which is
dependant on extended work with stakeholders
 Option 2: Use APUC framework for next 12mths to allow quick win and
gathering of better management information
 Pros: initial assessment shows saving of 3% on contract, this could be quickly implemented
and allow management information to be collated as currently data is poor
 Cons: comparisons with industry suggest savings of 20% if had Institution commitment
contract
 Option 3: Institution to tender for a Category C/C1 contract for x years, with the aim of being
in y position in z period of time e.g. product rationalisation as part of contract requirements.
Intention would be dual supply award to maintain competitive tension etc
 Pros: formulise requirements
 Cons: resource effort involved given other portfolio opportunities have higher potential
Slide 26
Strategic Tendering Options
 Lead-In Period - detail period required:
NB: consider the period for implementing the
commodity onto PECOS agreed with your local ePS team during the project start up stage
 Extension Period:
detail any proposed period (s): [insert]
 Tendering route to demonstrate competition: following the [e.g. Open/Restricted]
procedure [using an e-auction] because [insert justification]
 [delete as applicable] A Contract will be established OR
 A Framework Agreement will be established as follows:
 framework route:
[single supplier/multi-supplier]
 multi-supplier framework lots:
[insert number proposed] and the justification for this is:
[detail]
 Call Off Contract mechanism:
[direct/ranked/ mini competition] and the justification for this is:
[detail]
Slide 27
Prior Information Notice (PIN)
 Use of PINs is not mandatory. PINs can be published through OJEU in
order to alert the market to forthcoming contract opportunities.
 Once a PIN has been published, reductions in timescales for competitions
identified in the PIN are possible.
 PIN should be published at least 52 days before and not more than 12
months before the contract notice.
 The PIN should contain details of supply and services contract for which
the public body expects to seek tenders in the next 12 months.
 PINs must be published on OJEU website (this can also be done through
the Public Contracts Scotland website).
Slide 28
ITT Considerations (particularly relevant to consider at this stage in more detail when the Open Procedure is
proposed so as to reduce the time taken to compile the ITT at the ITT composition stage)
 Statement of Requirements (SoR): the main areas and issues needing to be
inserted into the SoR are: [detail]
 IPR: [IPR does/doesn’t apply]. If IPR applies, the impact is [detail]
 TUPE: establish if TUPE is likely to apply: [Yes/No]. If yes, obtain the following detail for insertion
in Schedule 4 of the ITT: name(s), sex, employment location of individuals who may be subject to
TUPE and consult with the HoP or Human Resources or seek legal advice.
 Monitoring & Evaluation:
•
•
•
View the core areas detailed in Schedule 4 of the ITT and detail the KPIs to apply: [insert]
Will KPIs be for information only? If there are to be consequences if KPIs are not met this
should be referenced in the ITT Schedules 2 and 6.
Detail any other performance indicators or management reports required (other than detailed
already in Schedule 4 of the ITT): [insert]
 Pricing Strategy:
 detail the how the commodity will be priced (taking into account whole life costing and cost
avoidance). Can an e-Auction be utilised for this commodity? [yes/no]
 State the period of price stability (e.g. 1 year etc) and the reasoning for this: [insert]
Slide 29
ITT Considerations
 Mechanism for addressing variation in the charges e.g. via RPI/CPI etc:
[detail]. More info can be found at www.statistics.gov.uk/statbase/product.asp?vlnk=868
 State the payment period: [detail] NB: if no date is inserted, the default position under the Late
Payments of Commercial Debts Act 1998 is 30 days
 Parent Company Guarantee: state if either is to be included in the ITT for the framework agreement
and/or call off contracts or a contract and why use would be beneficial: [detail]
 Ts&Cs: list any clauses required over and above the standard ts&cs: [list]
 Questions for tenderers (to populate Schedule 6 of the ITT): [detail in outline]
 Part B services: If the procurement is considered to be high risk/high value, a standstill period should be
considered (with reference to Federal Security Services Ltd vs Police Service of Northern Ireland).
Slide 30
Information re Evaluation of References, Site Visits, and
Presentations
 References:
 In a Restricted procedure, ascertaining an applicant’s past experience in terms of “technical or professional ability” (as determined by
Regulation 16(7)(b)(ii) of the Public Contracts (Scotland) Regulations 2006) can be included in a Pre Qualification Questionnaire as a
section criteria. Written evidence of past performance, which can be objectively evaluated, can be used but it is not recommended
written evidence is used as a Minimum Standard. Standard forms can be used to request references , but returned references should
then be used for information purposes only.

The above also applies to an Open procedure.
Site visits:
 If a site visit is required before tender return i.e. to be used to inform tenderers more clearly regarding the outputs of the requirement
e.g. visit to an Institution's property or visit to a new build, then this is not evaluated.
 If a site visit is deemed to be required post tender return and as part of evaluation process (because the information to be ascertained
from the site visit directly relates to the subject matter of the Contract or Framework Agreement), this must be detailed as an award
criteria in the Contract Notice or ITT, be capable of evaluation, and make clear what is being assessed in the site visit.
Presentations:
 If a presentation is deemed to be necessary as part of tender evaluation and/or bid clarification, it can only be used for information
purposes and cannot be detailed as an award criteria in the Contract Notice or ITT and used to evaluate tenders because it is
subjective, and not capable of objective evaluation i.e. performance at interview is not an evaluation criteria.
 Evaluation of a presentation’s written output is permissible where as part of bid clarification tenderers are requested to present on
common areas in the submitted tenders (which following tender evaluation have been revealed to be areas where clarification would
be needed). These areas cannot be in addition to the award criteria detailed in the Contract Notice or ITT.
 Ensure any area of concern remaining after the presentation is followed up in writing as part of bid clarification.
Slide 31
PQQ Selection Criteria
Further information OGC Selection/Award criteria PPN
Selection Criteria:
REFER TO PQQ GUIDANCE NOTE
Criteria:
 Part A – Background Information
 Part B – Economic & Financial Standing
 Part A - Section not scored – for info only
 Part C – Conviction of Criminal Offences
 Part C - If the applicant answers ‘Yes’ to any question they
MUST be excluded from the process
 Part D – Business Probity
 Part D - If the applicant answers ‘Yes’ to any question they
MAY be excluded from the process
 Part E – Technical & Professional Ability
NB - If restricting number of PQQ applicants, the
minimum**/maximum number able to participate is:
[number]. NB: clarify if this number relates to per
lot or to the overall framework
** minimum number must be 5
 Part E - If minimum standards are set and aren’t met, the
applicant should be excluded from the process otherwise
use objective scoring criteria to shortlist those applicants
meeting minimum standards
 Part B - Insert minimum standards in the Contract Notice or
list as objective criteria in section III.2 in the Contract
Notice - Institutions should follow their own guidelines for
Financial Analysis. See APUC’s of Financial Analysis of
Accounts* for recommended levels. NB: if minimum
standards are set and aren’t met, the applicant should be
excluded from the process
* Institutions can access APUC’s guidance composed for
conducting the collaborative procurements, use alternative
or in-house resources
We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is
Slide 32
consistency & transparency right through the strategic sourcing process
ITT Award & Weighting Criteria
Price Quality Ratio:[insert]
Weighting Criteria:
Further information OGC Selection/Award criteria PPN
Award Criteria: award criteria is based on [MEAT/lowest price]
Minimum Standards (if necessary)
Service Delivery – Details Requirements
PASS/FAIL
Service Delivery – Detail Requirements
PASS/FAIL
CSR – Detail Requirements
PASS/FAIL
Supplier Stability & Viability – Detail requirements
PASS/FAIL
Award Criteria
PQR
Weighting (%)
Price
40%
Quality
In this example the headings below are for six award criteria. All questions to be
asked of tenderers in the ITT must relate to this criteria and have corresponding
weighting. Any sub-criteria and weightings must also be listed. Refer to ITT
Schedule 6 for further info.
-
Subweighting
(%)
100%
Service Delivery
20%
Design Scenarios
25%
Staffing
5%
Project Planning & Implementation
25%
Warranty & Support
10%
Continuous Improvement
15%
60%
We need to ensure that we are able to objectively score against each award criteria (and any sub-award
and
Slidecriteria)
33
there is consistency & transparency right through the strategic sourcing process
ITT Call Off Contract Award
Award Criteria:
Criteria
Price Quality Ratio:[insert]
Weighting Criteria:
award criteria is based on [MEAT/lowest price]
[insert criteria]
 [insert weighting]
We need to ensure that we are able to objectively score against each criteria (and any sub-award
Slide 34
criteria) and there is consistency & transparency right through the strategic sourcing process
Contract Implementation – Lead-In Period
 Detail what will need to happen, when, and whose responsibility is it to
e.g.:






Conduct product trials (if applicable)
Start running down stocks of current product ranges (if applicable)
Prepare/ complete any required training
Clarify supplier change management/ implementation expectations
Ensure smooth transition
Follow-up on progress
Note requirements for completion later in the strategic sourcing process:




Systems updates,
Savings notification
Notification and award letters
Buyers Guide/ Commodity Action Report (CAR) etc
Slide 35
ePS Trading Strategy
 Detail how End Users will see and access the [Contract/Framework
Agreement] content in PECOS:
1. Use APUC’s Supplier Report showing ePS active suppliers through Institutions & ePS Supplier Report to determine PECOS:
 Content Availability
 Connection Type
2. Develop a list of specific and general ePS issues / requirements relevant to the commodity:
[list]
Plan how these will be accommodated on PECOS: [detail]
3. Decide PECOS trading strategy:
 on catalogue
 Catalogue
 Punchout
Slide 36
Strategic Contract Management
 All contracts or framework agreements will be contract managed by the Procurement Officer (or delegated
officer(s). Refer to Schedule 4 of the ITT for Procurement Officer and User Group roles and
responsibilities.
Note that once the pan Scotland strategic contract management guidance, processes, and templates are available,
these will be incorporated into the strategic sourcing documentation.
Slide 37
Commodity Project Plan (complete as applicable)
 Open Procedure

Complete and attach the Commodity Project Plan
 Restricted Procedure

Complete and attach the Commodity Project Plan
 Competitive Dialogue Procedure

Complete and attach the Commodity Project Plan
 Negotiated Tendering Procedure

Complete and attach the Commodity Project Plan
 E-Auction in an Open or Restricted Procedure

Complete and attach the Commodity Project Plan (open)

Complete and attach the Commodity Project Plan (restricted)
Slide 38
Commodity Life Cycle & Technology Roadmap Considerations
(OPTIONAL)
•By understanding where a
product is in its lifecycle we
get an insight into suppliers
likely approach to price and
market share
Product
Introduction
BMS
Early
Adoption
Product
Maturity
DES
Product
Decline
Branched Bio absorbable
DES
DES
Price
•By looking at product
developments in the context
of life cycles we can
estimate the time based
impact on price
Now ??
1999 To 2005
2005 to 2007
Future
Slide 39
Supply Chain Considerations (OPTIONAL)
Suction Liners
RMS Healthcare
65651930
Abbot
Procare / Serres
Manufactured
UK
Manufactured
Malta
Manufactured
Finland (Serres)
Distributor
SSS
Shipped to
Cardinal Health
Warehouse
Selby, UK
Dispatched to hospital
Shipped to
RMS Stirling
Distribution
SSS
Dispatched to hospital
Dispatched to hospital
VacSax
9910-208
Direct dispatch to hospital
Distributor link
to be removed
going forward
Mapping the Supply Chain will allow institution to understand additional benefits to it from
the restructuring of the Supply Chain
Slide 40
Commodity Strategy Sign-Off – User Group & Head of
Procurement
User Group:
NAME
TITLE
DEPARTMENT
DATE
Head of Procurement:
Profile & Strategy approved by Head of Procurement: ……………………………..
Date: …………………………
Slide 41