100322 Procurement for Planning Managers
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100322 Procurement for Planning Managers

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Workshop faciliatation/presentation on procurement for Planning Managers, Planning Advisory Service, Warwick Business School, 22 and 23 March 2010.

Workshop faciliatation/presentation on procurement for Planning Managers, Planning Advisory Service, Warwick Business School, 22 and 23 March 2010.

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  • http://www.timesonline.co.uk/article/0,,8122-2318417.html
  • http://www.timesonline.co.uk/article/0,,8122-2318417.html
  • Murray, J.G. (2007) ‘Strategic procurement in UK local government: The role of elected members’, Journal of Public Procurement 7 (2) pp194-212 .
  • Kraljic, P. (1983) ‘Purchasing must become supply management’, Harvard Business Review, 61, Sept/Oct

Transcript

  • 1. Getting value for consultants: Practical approaches to working with suppliers Dr Gordon Murray 22 and 23 March 2010
  • 2. National picture
      • Professional services in #5 out of six
      • £1.8bn per year on consultants (£2.2bn on temporary staff)
      • Belief that £100m can be saved on consultancy by March 2011
      • 5-6% potential savings on consultancy by March 2010.
  • 3. Agenda for discussion
    • Why is procurement important?
    • ‘ Policy through procurement’
    • Procurement cycle
    • Roles, responsibilities, remits, relationships
    • ABC, category management, collaboration, frameworks
    • The legal framework
    • Your issues?
    • Night work – developing a brief
    • The navigating the process
    • Your procurement improvement plan
  • 4. Public procurement: Getting value?
  • 5. Public procurement: Getting value?
  • 6. Public procurement: Getting value?
  • 7. Public procurement: Getting value?
  • 8. Public procurement: Getting value?
  • 9. Public procurement: Getting value?
  • 10. Public procurement: Getting value?
  • 11. Public procurement: Getting value?
  • 12. Public procurement: Getting value?
  • 13. Public procurement: Getting value?
  • 14. Public procurement: Getting value?
  • 15. What do you mean
    • Getting value?
    • Value?
    • Practical approaches?
    • Suppliers?
  • 16. Getting the jargon right
  • 17. The commissioning cycle Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle
  • 18. Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review Determine the need Supplier selection Contracting Ordering Expediting Follow-up/ evaluation The commissioning cycle The purchasing cycle procurement
  • 19. Eight principles of good commissioning
    • Understand the needs of users etc., by engaging with TSOs as advocates to access their specialist knowledge
    • Consult provider organisations when setting priorities
    • Put outcomes for users are the heart of the process
    • Map the fullest practical range of providers
    • Consider investing in the provider base
    • Ensure contract processes are transparent and fair
    • Ensure long-term contracts and risk-sharing
    • Seek feedback to review effectiveness of the commissioning process
  • 20. Policy through procurement
  • 21. What are the core internal policies which are applicable to your procurement?
  • 22. Policy through procurement
    • SMEs, incl. TSOs, lowering barriers to their participation
    • Supporting skills training, providing apprenticeship opportunities and tackling youth unemployment
    • Resource efficiency focusing on carbon reduction.
  • 23. How can we manage strategic procurement risk?
  • 24. Kraljic’s Positioning Model Bottleneck Strategic Routine Leverage Supply Market Complexity/ Risk Expenditure
  • 25. Procurement Cycle 8. Closure / Review Need 1. Identify Need 2. Develop Business Case 3. Define Procurement Approach 4. Supplier Appraisal 5. Tender Evaluation 6. Award Contract 7. Manage Implementation of Contract
  • 26. Gateway Stages 4. Supplier Appraisal 5. Tender Evaluation Challenge Challenge Challenge Challenge Challenge Challenge 8. Closure / Review Need 1. Identify Need 2. Develop Business Case 3. Define Procurement Approach 6. Award Contract 7. Manage Implementation of Contract
  • 27. Procurement Disasters of our time
    • For each case study
    • Analyse the news article and summarise
    • Identify the main issues and what went wrong
    • Identify the stages in the procurement cycle when effective scrutiny could have been used to reduce the risk
    • Identify which questions you would have asked at that stage/s
    • Prepare to feedback
  • 28. Key lessons
    • Cross-functional team with appropriate skills & roles
    • Understand the trade-offs
    • The right brief
    • Robust business case
    • WLC
    • Tight project management
    • Proactive SCM throughout the procurement cycle
    • Challenge through the procurement process
  • 29. Roles, responsibilities, remits and relationships
  • 30. Roles, responsibilities, remits and relationships
    • Who does what in your procurement process?
    • Who should to be part of your procurement process?
    • Why?
    • What needs to happen to make procurement relationships more effective?
  • 31. Legality
  • 32. The core framework
    • EU
      • Thresholds: £156,442
      • Procedures
    • UK Regulations
    • Council
      • Constitution/Standing orders
      • Financial Regulations
      • Corporate procurement strategy
      • Procurement Codes of Practice
      • Procurement KPIs
  • 33. Principles, regardless of contract value
    • Equal treatment
    • Transparency
    • Non-discrimination
    • Proportionality
    • Mutual recognition
  • 34. The Public Contracts Regulations 2006
    • Open
    • Restricted
    • Competitive dialogue for ‘complex contracts’
    • Negotiated
    • Consortia
    • ‘ Stand still’ periods
    • Remedies
  • 35. Framework Agreements
  • 36. What is a framework?
    • Standing offers, or
    • Binding contracts
      • Quantities
      • Prices
  • 37. Framework Agreements: Project start-up questions (1)
    • Is a framework the right approach?
    • Cost Benefit Analysis of using someone else’s?
    • Lead-time sufficient to do it right?
    • Term?
    • Participants?
    • Migration strategy?
    • Quantity?
    • ‘ Lots/bundles’?
  • 38. Framework Agreements: Project start-up questions (2)
    • Pricing strategy: e.g. Fixed price/Rise and Fall?
    • Standardisation with existing?
    • Scope?
    • Single/many providers?
    • Procedure: open or restricted?
    • E-auction?
    • Selection and award criteria, including quality/price weighting?
  • 39. Framework agreements: Award process
    • Threshold £156,442
    • Need to ensure process integrity, i.e. do what you say you’re going to do!
    • Tender strategy
    • OJEU
    • Make clear Framework is being used
    • Detail who can use the framework
    • Should be maximum of four years
    • Aggregation rules
    • Restricted procedure
    • Supplier appraisal
    • Specification
    • Tenders invited
    • Tender evaluation: MEAT
    • Standstill period
    • Award of Contract
    • Constructive Debriefing
  • 40. Framework agreements: Post-award
    • Migration management
    • Contact management
      • Cost and quality management
      • Relationship management: Customers and providers
      • Dispute resolution
    • Management of opportunistic losers
    • Closure and re-letting
  • 41. What makes services procurement so different?
  • 42. The problem with services
    • Inseparable
            • the person receiving the service needs to be part of the delivery/provision
    • Perishable
            • can’t be stored
    • Intangible
            • isn’t something to be looked at and say ‘look what bought’
    • Heterogeneous
            • quality control is difficult because it depends on the quality of the person delivering
  • 43. Navigating the procurement cycle
  • 44. Procurement Cycle 8. Closure / Review Need 1. Identify Need 2. Develop Business Case 3. Define Procurement Approach 4. Supplier Appraisal 5. Tender Evaluation 6. Award Contract 7. Manage Implementation of Contract
  • 45. Selection & award criteria Is there a difference?
  • 46. Developing the Brief
    • Can you define the outcomes to be achieved
    • Strategic fit
    • Who, what, where, why, how and when
    • What are the KPIs
    • Selection and Award Criteria
  • 47. Business case
  • 48. The procurement approach
  • 49. Strategic procurement options appraisal … … Supplier Cash flow E-procurement for cost reduction Achieving community benefits orientation Cost reduction orientation Social clauses Functional specification focus Local purchasing Consortium purchasing Multi-sourcing Single-sourcing Short-term contracts Long-term contracts
  • 50. ABC analysis
  • 51. Category management
  • 52. Category strategy Map future procurements Adopt a risk-based approach: Identify the most important categories Develop a clear plan for effective category management, exploring options, and with targets Within each business unit designate someone to target a category for improvement Discuss with the supply market future plans & how to minimise/maximise your impacts Specify, by preference, in performance and output standards
  • 53. Going to market
  • 54. Short listing
  • 55. Selection criteria
    • Technical capability
    • Technical capacity
    • Financial stability
  • 56. Tender evaluation
  • 57. Award criteria
    • Price
    • Delivery time
    • Quality
    • Technical back-up
    • Technical merit
    • Technical ability
  • 58. Award
  • 59. Contract management
  • 60. Close and review
  • 61. Your procurement improvement plan
    • What are you going to do when you go back?
  • 62. Efficiency Exchange
  • 63. Imagine a tool for …
    • collaborative knowledge sharing
      • what works and doesn’t work, but will in certain circumstances
    • collaborative problem solving
      • helping find the one person who’s thinking about the same challenge
      • or has a suggestion which could help
      • or enabling suggestions which could help someone else
    • drawing on local government expertise in
      • Drafting a policy, specification, contract ...
    • mass on-line conferences, debates and ability to question experts
    • Comparative benchmarking on efficiency
  • 64. Getting value for consultants: Practical approaches to working with suppliers [email_address] www.slideshare.net/DrGordonMurray
  • 65.