How procurement manage spends and save costs illustrated with a a case study of the Olympic games . For more information contact us at Procurementcentral.co.uk

1. MODULE: PROCUREMENT TRANSFORMATION 2020
▪ Stephen Wills .Procurement Central –E learning
▪ Fellow of Chartered Institute of Procurement &
Supply
▪ MBA in Strategic Procurement and as a CPO
▪ London Olympics, Aviva, AXA
▪ Managing 1bn Euro spend
▪ Cost saving initiatives
Spend less and get more for your money
During uncertain times

2. MODULE: PROCUREMENT TRANSFORMATION 2020
Crisis Budget Cuts :–
• Don’t be tactical price cutters
• Spend Analysis
• Calculate Total Cost of Ownership & Cost levers
• Segmentation –Kraljic and Cat Management
• Market Analysis
Spend less and get more for your money
During uncertain times Pre tender stage

3. MODULE: PROCUREMENT TRANSFORMATION 2020
• Highest quality, Best suppliers, Highest service
• 250 SME’s won contracts
• 90% of spend with UK suppliers
• 66% of suppliers outside London
• Business won all across the UK
• 500 suppliers – an exclusive club
• Critical to LOCOG & British team
• Diversity, inclusion & sustainability
The Olympic Games Security Case Study
Spend less and get more for your money During uncertain times

4. Mobilise
Contract
Kick-Off
Project
Develop
Strategy
Source
Supplier
Gather
Info
Quality / Delivery / Disposal
Commercial (DAG )
Sustainability
Diversity and Inclusion
Legal / Financial / Health and Safety
4
Spend less and get more for your money
During uncertain times
The Olympic Games Security Case Study Governance

5. MODULE: PROCUREMENT TRANSFORMATION 2020
• New requirements trebled potential spend to £350m
• Embedded supplier with exclusive rights so no obvious
leverage
• Government money & media sensitivity
• Procurement Team left in 2011
• Pressure to agree go ahead
• Complex infrastructure to deliver the new program :
Guards , Accommodation, Training, Recruitment, IT,
Uniforms ,Catering , Private security , Scanning devices ,
CCTV, stewards, barriers & fencing
The Olympic Games Security Case Study
Spend less and get more for your money During uncertain times

6. MODULE: PROCUREMENT TRANSFORMATION 2020
• Satisfied incremental needs whilst evaluating the work
packages
• Replaced the team & capability
• Merged contract management for end to end control
• No invoice paid without a PO
• Leveraged further £700m of spend via Government
against supplier
• Future opportunities assessed and leveraged
• All funding justified with Government
Spend less and get more for your money
During uncertain times
The Olympic Games Security Case Study Approach

7. MODULE: PROCUREMENT TRANSFORMATION 2020
▪ Workshops held with stake holders to be on message
▪ Amended contract negotiated with time left & no loss of service
▪ Demand management challenge removed unwanted
requirements
▪ Extensive KPI’s implemented with degrees of penalties
▪ Gain and Pain share mechanisms.
▪ Clear disposal and retention policy agreed on assets
Spend less and get more for your money
During uncertain times
The Olympic Games Security Case Study Outcome

8. MODULE: PROCUREMENT TRANSFORMATION 2020
Operational
expenses
£69m
Pre games
training
Games Time
Training
Travel
Accommodation
Subsistence,
Food and
beverage
Equipment
Project
Management Fee
£53.4m
Project
Management
Office
Office
Accommodation
Screening and
Vetting
Multi Use Facility
Workforce
sourcing and
recruitment
Games Time
Operations
Support
Labour Expenses
£123m
Cost of guard
force hours
across all venues
Labour
Management Fee
£10.6m
8.7% of total
labour expenses
The Olympic Games Security Case Study Outcome
▪£350m to £250m

9. MODULE: PROCUREMENT TRANSFORMATION 2020
Spend less and get more for your money
During uncertain times Pre tender stages
Specifications –
Reduce non essential items for
cost reductions
Internal Negotiations –
Challenge company
stakeholders
Demand Management –
Procurement work with stakeholders
on Wants and Needs
Standardisation
Aggregates volumes for cost
reductions
Rationalisation
Shift to single source for supply
chain efficiencies
Category Management and Kraljic will assist you
Summary

10. MODULE: PROCUREMENT TRANSFORMATION 2020
Summary
•Agree Governance to prevent internal disputes
• We are cost out /Value in Not price cutters
•Pre tender .Challenge the cost levers
• Don’t go directly to a price reduction
•Up stream tenders
• Post tender continuous improvement
Spend less but get more for your money .
Source benefits and protect value .

11. E learning.
On line Training for
individuals and
groups

12. MODULE: PROCUREMENT TRANSFORMATION 2020
www.procurementcentral.co.uk
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