21112012 case studies procurement scotland
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21112012 case studies procurement scotland 21112012 case studies procurement scotland Presentation Transcript

  • Procurement Scotland ‘Sectors’ APUC (Education) Scotland Excel (Local Government) National Procurement (Health) Central Government 20 December 2012 – Iain WickingCollaborative Procurement 1
  • Procurement Scotland• Over 100 separate public sector organisations on a single supporting information service with many more seeking to access the Procurement Scotland service;• Over US7.5billion transacted at the end of 2010/11;• Participants: • 100,000+ regular users across the Scottish Public sector; • 100,000+ active suppliers; • 145,000 live catalogues; • 1,500 cXML punch-out connections and integration into over 60 ERP systems; • No of POs transacted per annum - 700,000 orders with 2,900,000 order lines;• A 40% reduction in procurement administrative costs across the Scottish Public Sector and payment days reduced to ten for suppliers trading electronically;• Elimination of over 360,000 paper invoices via the integration of procurement cards and eInvoice services, and;• Fully audited savings as at 2008/2009 of $1.18Billion - made up of better purchasing across the government, reduced ICT costs and process efficiencies. Collaborative Procurement 2
  • Procurement Hub Mobile and Tablet Access Portal Access for Buyers and Suppliers Collaborative Procurement 3
  • Procurement Hub - Information Flows Buyers Suppliers Receipted goods Good & services delivered 6 Receiver 7 HUB Buyer & Community Activities 1. Add/update users 2. Add/update org. structure 1 Search 3. Supplier upload Buyer 4. View and track documents – 2 Requisition PO’s, Invoices, etc Purchase Order 5. Community announcements 4 Approval Supplier & Community Activities Supplier Approver 3 1. Add/update users Purchase Order 2. View and track documents – Accepted PO’s, Invoice, etc 7 3. Edit/update facility Receipted eInvoice 4. Management announcements Goods 8 Procurement/ 8 Finance Dept. 9 eInvoice 5 eInvoice match & settlement Payment 11 13 Payment Settlement authorisation 9 Billing data file 12 Acquiring Bill Issuing Bank P-Card/AP 5 10 Bank Payment Collaborative Procurement 4
  • P2P Individual User View Collaborative Procurement 5
  • Approval Summary and Actions Collaborative Procurement 6
  • Reporting Collaborative Procurement 7
  • Rule and Decision Engine • Rule and Decision Engine drives the Approval Process is a powerful and versatile feature in the system. Administrators are able to define the Approval Roles to be used in the Approval Plans. These define workflow processes, assign approval plans to users and determine which users are to fill the approval roles in those plans uniquely in each organisation. • Requisition and Order Request approval can be combined to enable the creation of powerful and detailed approval rules tailored for each organisation. Collaborative Procurement 8
  • Regional ‘Hubs’ Support Community Management • Promote localised collaboration; • Supplier and Buyer adoption; • Shared learning; Highlands • Centres of Excellence; Grampian • Consistent programme resource, and; Tayside West of Scotland • Link with ‘e-City’ Initiative, Lothian and Borders associations, Enterprise initiatives, etc. Collaborative Procurement 9 9
  • All Government Departments All Government Departments participate: • Although there is clearly a benefits case for eProcurement in most organisations many of the Agencies and NGO’s would not have business case because they are so small. • By banding them together in Procurement Scotland has been able to reduce the cost and create a business case. ...collective implementation ensures an affordable least cost service Collaborative Procurement 10
  • All of Education is on the Procurement Scotland System• ALL 62 Universities and 39 ...the programme Colleges use APUC 39 was initiated to and nearly all use 39 drive the PECOS P2P efficient use of• Centre of Expertise 39 36 Government 39 17 35 created Funding across 15• Strategy and Policy 16 38 the University sharing sector.• Sharing contracting 31 13 12 22 34 14 25 strategies 18 37 32 33 16 24 17 26 12 19 30 23 29 27 28 Collaborative Procurement 11
  • APUC is a ‘Sector’ of Procurement Scotland Advanced Procurement in Scotlands Universities and Colleges ( Advanced Procurement for Universities and Colleges (APUC) is the procurement Centre of Expertise for Scotlands 60 (formerly 62, reduction due to merger) Universities and Colleges. Membership comprises the participating institutions who are stakeholders in the organisation. Established in response to the Review of Public Procurement in Scotland (by John F McClelland CBE) of 2006, APUC was formed in January 2007 to lead the Public Procurement Reform Programme in the sector, to act as its representative body (in matters related to procurement), provide best practice guidance and support, and operationally lead and facilitate collaborative contracting for client institutions. APUC was also tasked with implementing the eProcurement Service (Procurement Scotland - PECOS) across this sector. Collaborative Procurement 12
  • APUC OverviewGovernance Model • Purchasing from those 25,000 suppliers either through catalogues on the system or through Punch Out.APUC is a private company limited by guarantee, whollyowned by all of its member institutions across Scotland, it • Total net potential cashable and non-cashable benefitsis grant funded by the Scottish Funding Council. The Chief of over £10m per year;Executive Officer, on behalf of the Board, provides • 110 contracts available via APUC to client institutions byprogress reports to the Scottish Funding Council (SFC) and end of Q1 2011 (either led, jointly-managed ormember stakeholders. facilitated), with Buyers Guides in place. It is estimatedAPUC is a core member of the Scottish Government by steady state, due in the 2011/12 academic year,Procurement Reform Delivery Group and as such also around 130 agreements will be available, and;reports progress on behalf of itself and its clientinstitutions in relation to the Public Procurement Delivery • This is in addition to the tenders/contracts put in placePlan. via the APUC College Support team which usually has over 40 tenders in hand at any one time.Key Statistics However, this has entailed/entails a degree of pump-• From the standing start in January 2007 to the end of priming (in this case from Scottish Government and then June 2012, Scotland’s Universities and colleges have from the SFC) and there will be a development curve in placed 715,000 Purchase Orders covering 1,650,000 terms of skills and awareness (particularly among smaller line items over the past twelve months. institutions) aided by design and introduction of improved• There are 12,000 registered PECOS users in Institutions tools and performance management solutions. and 25,000 suppliers to the sector registered in PECOS. Collaborative Procurement 13
  • APUC OverviewIt is anticipated that this structure will realise sustained team with client institutions, is key to deliveringbenefits into the long term as well as in the early years, sustainable value and success .the build up-phase as such, is something that will take Operational Objectives:years rather than months to fully embed.APUC aims to work jointly, as one team with client • To operate as a representative body for the Universityinstitutions, to support the embedding and consistent and College sectors in Scotland in matters related toapplication of good procurement practice within procurement;Scotlands universities and colleges, and to increase thesustainable value for money from institutions • To operate as a Centre of Expertise to support clientprocurement expenditure through the implementation of institutions in delivering advanced procurementadvanced procurement practice. This will maximise the performance in line with the McClelland Reviewcontribution that advanced procurement makes to recommendations;Scotlands investment in teaching, research andknowledge transfer such that institutions can deliver more • The development of strengthened collaborativewith the funds available in a risk managed and compliant procurement, Comprehensive implementation andenvironment. support for utilisation of the PECOS eProcurement solution, and;APUC has found that after initially taking a moreindependent approach, working in partnership, as one Collaborative Procurement 14
  • APUC Overview• Increase the level of procurement expertise and 49 projects for 20 colleges were completed, with an capacity to universities and colleges and assist in annual value of £ £5.8M. further development of the skills already in place. A further 50 projects are in progress with an annual value of £7.5M. Additionally, a further 51 projects are plannedAchievements and Benefits for, with an annual value of £13.3M. These numbersBy the end of March 2011 PECOS had been implemented demonstrate the extensive use of the CS team acrossin 47 institutions and 3 other institutions are being colleges. It is estimated that by the end of July 2011, CSsupported with alternative eProcurement systems. will have assisted in tendering 84 completed procurementThe Centre of Expertise has been working on collaborative projects. These are managed to wherever possible provideprocurement contracts and this is done using a further knowledge transfer to client institutions throughout thecollaboration model so that many are jointly put in place support process.with other Centres of Expertise or regional purchasingconsortia across the UK, thus avoiding as far as possibleneedless duplication of resources, while maximisingleverage. As mentioned above, the current total of 110should rise to a steady state of circa 130.In addition to collaborative procurements, APUC, CollegesSupport (CS) team has also been working on highervalue/capital projects. Since January 2010, Collaborative Procurement 15
  • All of Local Government is on the Procurement Scotland SystemAll 32 Local Authoritiesand Schools participate Scotland Excel • ABC – Authorities Buying collaborative Consortium in the West of Scotland content is • Tayside and Forth Valley available to ALL Purchasing Consortia 32 Local • Aberdeen Shared Service Authorities and Procurement the school • Centre of Expertise system through • Collaborative Procurement Procurement Scotland.... • Four regional hubs – Paisley, Edinburgh, Aberdeen and Inverness Collaborative Procurement 16
  • Excel is a ‘Sector’ of Procurement Scotland Scotland Excel Scotland Excel is the Centre of Procurement Expertise for the local government sector. Launched on 01 April 2008, its remit is to work collaboratively with members and suppliers to raise procurement standards, secure best value, and to improve the efficiency and effectiveness of public sector procurement in Scotland. Scotland Excel is a non-profit making organisation funded by participating local authority members, and hosted by Renfrewshire Council as the lead authority. Profile: Public Sector, Local Authority Why: Improve efficiency and reduce costs by encouraging collaborative procurement initiatives. What: Development of a scalable procurement solution which can be used collaboratively by all local authorities in Scotland. Collaborative Procurement 17
  • Excel OverviewHow: Scotland Excel was launched on 01 April 2008; All • Deliver and mobilise best value contracts which achieve32 Councils in Scotland are now members. measurable benefits for our members.Where: Head office in Paisley and regional teams in • Practise responsible sustainable purchasing by taking aEdinburgh, Aberdeen and Inverness. holistic view of the social, economic and environmental implications of product and service choices.Governance Model • Foster effective partnerships by engaging withJoint Committee of one or more members from each Local customers, suppliers and other stakeholders.Authority responsible for strategic direction and approvesannual budget and business plan. Executive Sub- • Champion a professional approach to public sectorCommittee meets regularly to approve contract awards procurement by providing relevant learning andand other business decisions. development opportunities to staff and stakeholders.The Chief Executive Officers Management Group (6 local • Promote and share best practice among localauthority CEOs) responsible for monitoring performance authorities through effective communications and theagainst business plan and objectives, approving Associate work of the Procurement Improvement Programme.Member applications and the range of products and • Develop Scotland Excel as a Centre of Procurementservices that appear on contracts. Expertise through a programme of continuousKey Objectives improvement which maintains industry-recognised standards. Collaborative Procurement 18
  • Excel OverviewAchievements and Benefits • As of February 2010, 43 delegates had achieved Chartered Institute of Purchasing and Supply (CIPS)• By the end of 2010, 37 new collaborative contracts had professional qualifications through courses offered by been delivered with an estimated value of more than Scotland Excel in partnership with Glasgow Central £170m per annum. Savings forecasts vary by contract College. and local authority, (mean average c. 6.5% across all new contracts). • First public sector body in Scotland to achieve CIPS accreditation for Excellence in Purchasing Policies and• Savings model developed to monitor and report actual Procedures. contract savings for each local authority. • Responsible Sustainable Procurement strategy launched• In December 2009, Scotland Excel initiated a in February 2010. Procurement Improvement Programme in partnership with local authorities to develop and implement • As of February 2010, Scotland Excel had attended more strategies for improving procurement performance. than 34 supplier events to educate and inform suppliers about the public sector contract opportunities open to• Since January 2009, over 700 delegates from more than them. 60 organisations have attended Enhancing Procurement Capabilities courses. Collaborative Procurement 19
  • Excel Overview• Recipients of the first Government Opportunities Awards Scotland (GO) John F McClelland Collaborative Procurement Award in October 2008.• Scotland Excel was also Highly Commended at the 2010 Awards for the Graduate Trainee Programme and the work of its Catering and Cleaning Commodity Team.• In recent months, Scotland Excel has developed a number of contract opportunities within construction and social care and are exploring include financial services and facilities management in 2011-12. Collaborative Procurement 20
  • All of Health is on the Procurement Scotland SystemAll 14 Health Boardsparticipate along with: • Scottish Ambulance ...the business case Service • National Services across Health Scotland recognised the need • Other smaller health for a sector –wide organisations implementation of • Supported by: Procurement • Procurement Strategy Scotland services • Category Management and National Contracts to deliver benefits... • First line Procurement Scotland Support • National Logistics Collaborative Procurement 21
  • National Procurement is a ‘Sector’ of Procurement Scotland NHS National Procurement NHS Scotlands Procurement Centre of Expertise established in 2005 to provide goods, services technology solutions and procurement advice to NHS Scotlands 14 Regional Health Boards and 8 Special Health Boards. Profile: Public Sector, NHS Scotland, Centre of Procurement Expertise Why: provide more efficient procurement tools for health service in Scotland in face of challenging economic climate. What: delivery of collaborative procurement tools to the various NHS Boards in Scotland to ensure significant financial and service efficiencies. Collaborative Procurement 22
  • National Procurement OverviewHow: application of eProcurement to achieve best Objectivespractice strategic sourcing; working more effectively with National Procurement 2009-2010 objectives:-stakeholders to ensure robust demand management and • £8m of savings delivered from National Contracts,obtaining best value products from key suppliers. • £9.7m benefits released from our logistics service,Governance ModelSeven working groups in operation during year 2009-2010 • OTIF (On Time In Full) performance of 98%,to identify, review and embed best practice across NHS • Achieve PCA (Procurement Capability Assessments)Scotland under the aegis of the NHS Procurement Reform Superior Performance for 75% of NHS Scotland in scopeSteering Group. spend,Key Statistics • 50% of invoices to be received electronically,• NHS Scotland cumulative spend of over £1.5 billion a • 2% efficiency savings against agreed budgets. year on procurement of goods and services. Cumulative savings of over £100 million since inception. Achievements and Benefits• National procurement contracts saved an estimated The success of the Capability Assessment Process £24m in 2009-10. developed by National Procurement in their role as a centre of excellence is now being used as a model for the• National Logistics service saved c. £11m in 2009-10. rest of the public sector following successful deployment in NHS Scotland. Collaborative Procurement 23
  • National Procurement OverviewNational Procurement are working with Audit Scotlandand Scottish Procurement Directorate to evolve andsupport this process and to meet the target of getting 75%of spend being managed by Superior Performing Boards inpractice and behaviour terms of the 12 attributesarticulated in the McClelland Report 2006 (Governance,Organisational Structure, Resources and Skills, Practicesand Processes, Information Systems, Collaboration,Corporate and Social Responsibility, Reporting,Benchmarking, EU guidelines, Supplier Policy/Strategy andOverall Value of Results).Health Advertising Portalhttp://www.publiccontractsscotland.gov.uk/ designed to:-• Stimulate economic growth in Scotland;• Enable the Scottish Public Sector to achieve Best Value for money, and;• Standardise procurement documentation, for Pre- qualification questionnaires and to aid completion by suppliers and evaluation by purchasers. Collaborative Procurement 24