ePractice: eProcurement Workshop 25 May 2011 - Richard Baker
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ePractice: eProcurement Workshop 25 May 2011 - Richard Baker

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Presentation by Richard Baker, Sequence

Presentation by Richard Baker, Sequence

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ePractice: eProcurement Workshop 25 May 2011 - Richard Baker ePractice: eProcurement Workshop 25 May 2011 - Richard Baker Presentation Transcript

  • Sell2Wales Using procurement to stimulate economic development Richard Baker Managing Director
  • Introduction / about us
    • We’re a digital Agency
    • Extensive private & public track record
    • We’re passionate about e-Government
    • We focus on great web user experiences
    • We’re not a vendor
    • We’re a solution provider of:
      • Portals & web applications
      • Intranets & extranets
      • Mobile solutions
    • Context:
      • Pre-award phase
      • eNotification / eNoticing
      • (eSubmission/ eAwarding)
    • 25.1% economically inactive (21% UK)
    • Decline of primary and secondary industry
    • >99% of businesses SMEs
    • GVA of £44,333m (2007)
    • 10 th out of 12 UK regions (2007)
    • Output 90% of EU25 average (2002)
    • Desire to grow Tertiary ‘service’ sectors
    • Reliance on public sector employment
    Introduction / Wales
  • Introduction / small country big change
    • Devolution in Wales:
      • Powers with the Economy, Health, Education and Local Government
      • Policy, legislation (regulation/ guidance) or Assembly Measures (Welsh laws)
    • £6Bn public sector spend
    • 300,000 businesses
    = win/ win?
  • Background / savings to frontline £5Bn Save £100M
    • Standardisation of practices
    • Up-skilling of the buyer community
    • Improved techniques (consolidation, frameworks, consortia etc)
    • Adoption of E-Procurement tools
    Buyers
  • Background / e-Procurement
    • Three ‘steps’ to E-Procurement
    • Easy wins first
    • Quantity/ big hits
    • For buyers :
      • Provide buyers with free tools and make them good
      • It must interoperate
      • Make it easier to advertise/ find suppliers
      • How can suppliers be up-skilled to engage with the public sector?
      • Make it flexible
    • For suppliers :
      • It must be free
      • It must be easy to use
      • It must be relevant
      • How can we make it more efficient (self service)
      • Low value is what matters
    Background / the e-information brief
    • Surprisingly liberal UK approach:
      • No legislation for digital signatures
      • No mandate for use of national portal
  • Barriers / different agendas Value Wales Department for Enterprise & Transport Buyers Suppliers
  • Barriers / first agenda item > X for < £ < X for > £ Buyers Suppliers Goods & services
  • Legislation DE&T ValueWales
    • Best practice:
      • I’m local!
      • Hand written quotes are OK?
      • I know the buyer...
    • Best value:
      • Not always cheapest
      • Not always local/ de-risk
      • Sustainability
    Barriers / second agenda item Buyers Suppliers
    • Consultation, consultation and consultation...
    • Focus on the mandatory – OJEU 1 st low value 2 nd
    • Make it ‘frictionless’ - key once...
    • Do not legislate (very British...)
    • Make it one for all (irrelevant of region/ size/ sector)
    • Accommodate differing procurement practices
    • Offer supplier list/ closed RFQs (avoid the fear of overload)
    • Make it free
    • Need to develop ability:
      • Develop the supply chain
      • Provide support for buyers
    Barriers / removing them…
    • Private sector portal – definitive ‘touch point’
    • Notice searching:
      • View OJEU, non OJEU , RFQ notices and Tier 1 (e.g. Sub contracts)
      • Welsh notices and wider EU notices
      • Subscribe to automated E-mail notification of new opportunities
    • Procurer searching:
      • Locate buyers who buy your service/ product
      • Maintain a detailed visible profile for procurers
    • Supplier development:
      • Education/ training/ support
      • Partnerships/ collaboration
    Solution / suppliers
    • Public sector portal – first step in ‘e’
    • Notice creation:
      • OJEU notices
      • Non OJEU notices (Bilingual)
      • RFQs
      • Tier 1 (e.g. sub contract)
    • Supplier Searching:
      • Supplier database
      • Approved supplier lists
    • Flexible solution:
      • Scales to different procurement organisations/ structures
      • Process driven – to help with compliance
      • 3 rd sector, schools etc.
    Solution / buyers
  • Metrics / key milestones 2001 2002 2003 2004 2005 2006 2007 2008 Better Value Wales report published Sell2Wales strategy commissioned Sequence commissioned Sell2Wales strategy published NPW site launched 50,000 suppliers RFQ functionality included £2Bn notices published 10,000 suppliers 200 procurement organisations 1500 procurers 2009 2010 2011 2012 £10 Billion advertised 5,000 notices V2.0 1 st OJEU notice sent Squid
  • Metrics / How is it being used?
    • Buyers:
      • 364 Welsh procurement ‘entities’
      • >3,000 procurement users across these organisations
      • ~ 160 notices published monthly
      • 10,000 notices published to date
    • Suppliers:
      • 52,000 registered suppliers
      • 12,000 matched alerts sent daily
      • £15Bn notices advertised to date
    • Achievements:
      • 20% of the Welsh supplier & 80% of buyer communities registered
      • Contracts awarded to Welsh suppliers increased from 35% (2004) to 50% (2010)
      • Platform used to advertise >60% of Welsh purchasing
      • 71% of suppliers would recommend Sell2Wales to other businesses
    • Single site for suppliers, buyers and tier 1 contractors
    • Move away from procurement jargon
    • Improved performance and security
    • Focus on improved user experience:
      • Google type keyword searches
      • Location searches (including radius)
      • Faceted search
      • Saved searches not profile based
      • Vastly improved CPV search
      • Improved matching
      • Planned construction projects
      • Configurable email frequency
      • ‘ Complex’ suppliers (branches)
      • Improved supplier search (partners?)
  • Conclusion / the need for a ‘hub’ Hub (Supplier Questionnaire Unified Information Database)
  • Conclusion / some parting thoughts
    • Key lessons learned:
      • Recognise the economic development benefits of public procurement (it’s an opportunity not an overhead)
      • Don’t focus exclusively on the transactional savings/ benefits - think long term
      • Suppliers expect Facebook/ Amazon/ eBay – not an ‘exposed’ software solution
      • Interoperability is key – it’s an open market!
      • It’s not just about the buyer...:
        • Don’t let the buyers drive this, it needs to be in partnership with Economic development teams
        • Think from the supplier perspective as well as the buyer
        • Be wary of procurement platform extensions – you need user experience to be core
  • Conclusion / some parting thoughts
    • A model others are following…
    • A model others are following....
    • Why re-invent?
  • Richard Baker Managing Director [email_address] +44 (0)29 20935222 @Richlybaked Sell2Wales Using procurement to stimulate economic development