Starting this summer and running until 2015, we ’ ll be refreshing around 6000 of our branches. Creating brighter, more modern branches Introducing more automation, including self-serve Extending opening hours to complement today ’ s customers ’ needs The majority of the branches that will benefit from this significant investment are in actual fact SMEs As within our network of 11,5000 the majority , They are Post Offices run on our behalf by around 8000 independent subpostmasters Post Office network is largely a collection of SMEs We work with them every day And we understand the SME marketplace So the Post Office, backed by the government, is investing in SMEs across the length and breadth of the country – and investing in their communities. And there is another way this modernisation is supporting SMEs . . . . ..
1. Post Office procurement – best practice with SMEsBrian Deveney, Head of Managed Service & Sourcing
2. Today’s Post OfficeMore than 11,500 branches93% of people live within 1 mile of a Post Office14p in every £1 through our cash network20 million customers – and half of the UK’s SMEs - visit our branches every week.Modernising to remain relevant to communities in the digital world
3. Modernising the branch networkRefreshing around 6000branches over the nextthree yearsBrighter, more modernbranchesIncreased automation and Post Office main branch, Falmouthlonger opening hoursSignificant investment intoSMEs the length andbreadth of the UKPost Office network largelya collection of SMEs Post Office local branch, Aldershot
4. Seeing it from both sides• Post Office is caught by full PCR Regulations for Procurement• We are also expected to act and respond in the same manner as commercial organisations who do not have these restrictions• Main challenges we face: – Understanding future requirements (you don’t know what you don’t know) – Engaging with, understanding and utilising innovation in the SME market – Speed of delivery against non-restricted organisations
5. Transforming thePost Office network Small building works in 6000 Sub Post Offices over the next three years 10 new-style branches going live each working day Carried out in the main by local independent businesses Engaging with SMEs through our supplier strategy This Investment is for the community, in the community, by the community Competitive and Controlled Major part of the spend (IT, Regulated Products, Security etc) is carried out by Post Office under existing frameworks
6. IT Transformation projectEstablish competitive frameworks across products and servicesEnables speed to market and flexible response to tendersEstablish run towers to provide Prime suppliers and Sub-ContractorsIncentivise and target Primes around the use of SMEsCreate an “Agile Innovations” framework with SMEs to look at the future
7. Challenges and OpportunitiesThe mindset around Risk Averse Public Procurement needs to changeRemove the fear within the process and understand how to manage riskHow do we positively reinforce procurements focus on SMEsRemoving the process constraints but keeping the good practicesHow do we incentivise larger prime suppliers to use SMEsEncourage SMEs to create bidding consortia to provide the required scaleThe Government needs to continue to demonstrate clear leadership in this area