Procurement Landscape In Public Sector 2010
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Procurement Landscape In Public Sector 2010

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Presentation on 2010 Procurement Landscape in the public sector to Marketplace User Group annual conference, 8 January 2010, London

Presentation on 2010 Procurement Landscape in the public sector to Marketplace User Group annual conference, 8 January 2010, London

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Procurement Landscape In Public Sector 2010 Procurement Landscape In Public Sector 2010 Presentation Transcript

  • The public procurement landscape in 2010: a view Dr Gordon Murray 8 January 2010
  • A view
    • Commissioning/procurement/purchasing
    • Co-production
    • Recession response
    • Innovation & innovative procurement
    • Procurement as a shared services
    • Category management
    • Strategic eProcurement
    • Personalisation
    • Sustainable procurement
  • The commissioning cycle Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle View slide
  • 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 View slide
  • Implications for procurement professionals
    • New roles
    • Commissioners will have demands for support & advice
      • Funding strategy
      • Understanding co-production
      • Honouring the commitments of the Compact & Concordat
      • Removing the barriers
      • Engagement with the market
      • Interpreting the legislation
  • The recession
    • Probably the worst recession in >100 years
    • Four times larger in terms of GDP than ‘Great Depression’
    • Longest decline in manufacturing output since ONS records began in 1955
    • More recessions in last 35 years than the previous 350 years
    • 5% of council ‘strategic/critical suppliers ‘at risk’
  • Critique of current strategy
    • Public procurement strategy has changed little to reflect the current recession and may actually be dysfunctional
      • What’s this tell us about ‘strategic procurement’?
    • Need to rethink approach to ‘environmental scanning’
    • Need to review procurement strategy
      • Short v long term
      • Cost reduction v achieving community benefits
      • Risk profile of suppliers
  • 10 short-term steps to accelerate viable economic recovery
    • Democratic leadership and ownership
    • Link with economic development strategy
    • Proactively open opportunities, incl. new suppliers
    • Short-term contracts
    • Multi sourcing making use of ‘lots’
    • Encourage innovation
    • Make use of social clauses
    • Pay within 4 days using p-cards or
    • Pay on delivery
    • Provide security of business through forward standing orders
  • Innovation & innovative procurement
    • New Local Government VfM Task Force
    • Strategic objective
    • Focus on outcomes
    • Cross-functional teams
    • Strategic linkage
      • Cost reduction
      • Sustainable procurement
      • Economic development
    • Recognise the market as an asset
    • Performance manage
    • Read ‘Innovation Nation’
  • Procurement as a shared service
    • Shared services procurement needs to be included within consideration of structural models
    • What about shared services across public sector bodies?
    • How robust is the options appraisal process?
    • Do operational shared services procurement lead to strategic procurement shared services?
    • To what extent does political procurement curtail decisions?
    • To what extent do shared services constrain political procurement?
    • Shared Procurement Strategy?
    • Shared eProcurement strategy?
  • Category management
    • Professionalism v protectionism
    • National/Regional/Local
    • Have the answers which members are being encouraged to ask through ‘IDeA Member guides’
    • eProcurement is part of the solution
  • Strategic eProcurement
    • The business case
    • The eProcurement strategy
    • P2P seamless transaction cost reduction
    • Ownership and roll-out across categories
    • Strategic information management
    • Category management
  • Sustainable Procurement
    • Member & Chief Officer commitment
    • Relationship with Sustainable Community Plan and ‘Procuring the Future’
    • Linkage with
      • Strategic procurement management
      • Cost reduction strategy
      • Local economic development strategy
      • Climate change strategy
      • Category management strategy
    • Clear message to be communicated to the market and staff
    • Commitment to act throughout the procurement cycle
    • Commitment to on-going improvement
    • Plans for reviewing effectiveness
  •  
  • Efficiency Exchange
  • 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
  • The public procurement landscape in 2010: a view We lead in exciting times