The “Strategic Sourcing” toolkit


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The “Strategic Sourcing” toolkit
Dr Wendy Phillips, Associate Professor, Strategy and Operations Management, University of the West of England
Dr Dharm Kapletia, Senior Research Fellow, University of the West of England

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The “Strategic Sourcing” toolkit

  1. 1. The Strategic Sourcing Toolkit Dr Wendy Phillips Dr Dharm Kapletia
  2. 2. Toolkit Overview (1/2) Designed to support senior managers and decision-makers Strategic Sourcing Life Cycle Process Framework Tools and Guidance HEI Sourcing Maturity Framework Strategic Sourcing by HEI Activity HEI Portfolio Decision Matrix HEI Sourcing Decision Tree Successful Transition Planning Collaborative Sourcing Maturity Audit “A fact-based and analytical process for optimising the supply base, to ensure the achievement of the Higher Education Institute's (HEIs) strategic objectives. This involves the appraisal of a full spectrum of internal and external business models, and strategic choices as to how HEIs can best realise economic, efficiency and effectiveness benefits.”
  3. 3. Toolkit Overview (2/2) Designed to support senior managers and decision-makers Intelligent Customer Function (ICF) – Capability Audit Audit Headings Vision Leadership & Talent Management Tool-box DecisionSupport Operational Delivery Governance Example benefits of being an intelligent customer › The capability to sign contracts, and provide technical monitoring › Retention of in-house expertise of the services being delivered › Relationship management of stakeholders and suppliers › Managing expectations (avoiding disputes with staff, trade union and students) › Facilitating changing behaviours (buy-in) inside the HEI organisation so that benefits can be realised › The ability to overcome cultural barriers to change › Flexibility to support evolving, learning and adapting during the change process › The ability to write a good set of requirements and a good contract – these are crucial to acquiring the right services
  4. 4. Life Cycle Process Framework A through-life approach to Strategic Sourcing › A formal process to guide staff and suppliers through the HEI’s procurement process › Lessons learned show investment in robust early stage analysis can prevent problems from occurring years later (achievable aims and benefits, clearly defined outcomes and well managed systemic impact) › Multitude of actors involved – requires strategic leadership, sound governance arrangements and strong relationship management.
  5. 5. HEI Sourcing Maturity Framework Business Support LEADERSHIP & PLANNING PROFESSIONAL SERVICES OPERATIONAL SERVICES Catering & Cleaning (Private provider complements Inhouse) PEOPLE (e.g. Senior managers, teaching staff) Inputs INFRASTRUCTURE (e.g. Estates, library, catering, conferencing) Academic Delivery CORE Energy Procurement (Shared service) KNOWLEDGE CREATION CORE Recycling (Public sector service provider) Estates, Maint, FM (Private provider) Data Centre (Shared service within public sector) ENABLERS (e.g. Legal, health, consultants) Project Mgt of major build (Buy-in expertise) In-house Security (Private provider) Currently Outsourced CORE International teaching delivery (Shared service model) EQUIPMENT (e.g. ICT, AV, laboratory assets) KNOWLEDGE SHARING Emerging Outsourcing KNOWLEDGE UTILISATION
  6. 6. HEI Sourcing Decision Tree Beyond the decision tree, exploring the options • • • • A number of sourcing options exist from insourcing, co-sourcing, to outsourcing. There are range of vehicles available e.g. shared services, JV, social enterprises. Knowing what to source, where, how and must be determined by the HEIs identity, values and strategic objectives The Sourcing Activity Matrix (SAM) can help inform strategic sourcing decisions
  7. 7. Collaborative Sourcing Maturity Audit • Online, simple self-assessment tool measuring performance of collaboration between buyer and supplier teams • Assesses the health of medium to large service contracts where collaboration is instrumental for delivering benefits • Focuses on 6 key areas, providing the basis of a joint plan for addressing performance gaps
  8. 8. Future development If HEIs are to become the intelligent customers of the future there is need: • To assess existing capabilities across HEIs to understand what skills need to developed • To deliver training and support across all levels, including non-procurement staff • Exploration of the potential for a new shared service entity or existing expert HE body to deliver Strategic Sourcing implementation services to HEIs