Wales Co-op Centre - Procurement Mini Conference 2014


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Paul Cantrill of the Wales Co-op Centre at the 2014 Procurement Mini-Conference.

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Wales Co-op Centre - Procurement Mini Conference 2014

  1. 1. Who We Are • Set-up in 1982. • Now the largest co-operative development agency in UK. • Support and train co-operatives and social enterprises throughout Wales. • Funded by: Welsh Government, European Union, Local Authorities & Consultancy fees.
  2. 2. Co-operative Consortia - The Opportunities• Shared costs / pooling funding to buy services • Shared resources – staff / premises • Bulk purchasing • Increased brand recognition • Enhanced business efficiency & professionalism • Continuity and volume of supply • Shared skills and knowledge • Opportunities to share good practice and ideas • Greater presence in the market place & access to new markets • Ability to tender for large contracts – required scale • Peer support and creative exchange – mutually supportive culture • Shared responsibilities and risks • Inter-trading • Add value to a procurement bid and help increase the chances of winning a bid • Provides an infrastructure to explore other areas of joint activity
  3. 3. The Consortia Development Stages Stage 1 Strategic Rationale Stage 2 Identify Partners Stage 3 Early Stage Planning – Joint Vision Stage 4 Developing the Business Model Stage 8 Review and Evaluation Stage 5 Agree on the Structure of the Consortium Stage 6 Legal Framework and Governance Stage 7 Start Delivering
  4. 4. Joint Bidding Guide • Developed by Welsh Government, Wales Co- operative Centre and WCVA. • Aimed at both private sector businesses and social enterprises. • Practical toolkit to aid the success of consortia bids. • Guidance for both the supply and the buy side. • Online resource:
  5. 5. Strategic Planning • New money/opportunities? • Diversification? • Sustain existing revenue streams? • Reduce expenditure? • Consolidation? • Survive?
  6. 6. Why Form a Co-operative Consortia • Necessity – that is partnerships are mandated by law or regulation. • Asymmetry – one party wishes to exercise control over another. • Reciprocity – partners seek mutual benefit through cooperation. • Efficiency – partners may gain more efficiency through cooperation. • Stability – organisations can encounter less uncertainty through interaction. • Legitimacy – organisations may obtain or enhance their public image through cooperation. (Oliver, 1990)
  7. 7. Case Study – N. Wales Textile Recycling Consortium • 6 social enterprises in North Wales looking recycling textiles collectively. • Textile recycling has become a highly lucrative market. • Better bargaining power with textile merchants if work together – can command a higher price fore textiles. • Can also have more control of end use of clothing e.g. ethical markets. • Aim to set up a textile recycling depot – creates jobs and training opportunities for people in N. Wales. • Collectively bid for local authority recycling contracts.
  8. 8. Collaborative Working– When it goes Wrong • Collaboration is often better described as “putting mutual loathing aside in order to get your hands on the money” Alex Scott-Samuel • Partnership working involves “the undefinable in pursuit of the unachievable”! Powell and Dowling, 2006 • “Collaboration is like cottage cheese. It occasionally smells bad and separates easily.” Thompson and Perry, 1998
  9. 9. Who Should You Work With? • No hard a fast rules • Links to your strategy – what do you want to achieve? • Geographic coverage v breadth of experience and service offering – or both? • Size – do you need to partner with larger organisations to give you access to new markets? • Just social enterprises??
  10. 10. Developing the Vision • Recognition of the need to collaborate • Clear understanding of everyone’s starting point • Clear understanding of each partner’s respective goals – what are the common areas on which to hook a collective vision • Clear understanding of each partner’s respective competencies. • Be clear on people’s breaking points – no go areas • Recognition of the need to compromise • Clear on the culture you want to create • Terms of reference – set out the framework for engagement and objectives • Devise a work plan with timescales to meet expressed outcomes • Be clear on how to resource early stage development • Need to have the approval of the respective boards / trustees
  11. 11. Cilydd • Independent tea houses and cafes in North Wales. • Share a common commitment to an independent ethos. • Improve their approaches to marketing, buying, training and quality standards whist retaining their own individual identities. • Aim to create a unique tea and coffee culture for North Wales. • Future aim – establish a co- operative roaster for members.
  12. 12. Task  You are setting up a new Social Enterprise consortium. What are the three most important matters to address in establishing your rules for the group?
  13. 13. Boundaries for Engagement • Purpose of the consortium • Principles • Decision making processes • Administration • Finance • Dispute resolution • Membership termination / changes • IP • Duration of agreement • Confidentiality / data protection • Trust
  14. 14. Procurement Strategies • Understand the public sector’s potential requirements • Where do they operate from? • How do they procure? How often do they procure? • What is their procurement policy? • Do they work with other public bodies to aggregate their buying into larger contracts or regional frameworks? • Who are their current suppliers? • When do the current contracts run out? • Raise buyer awareness of your consortium • Update your marketing materials • Think through and explain your systems • Case studies and references • Upgrade your registrations.
  15. 15. The Consortia Spectrum
  16. 16. Case Study – Three C’s Partners Services • This is a consortium offering services such as cleaning services, catering services and local resources to the people in the Graig-Y- Rhacca and wider Caerphilly area. • The consortium consists of one business – a cleaning business – and the resource centres of White Rose and Graig-Y-Rhacca. • The members have come together to form a company which will employ a joint business development manager funded through the Social Enterprise Fund. • The company is a company limited by Guarantee with the 3 members as legal Members.
  17. 17. Things That Can go Wrong  Rushed planning and decisions at start-up  Non-compliance with legal requirements  Poor decision making  Lack of financial control  Lack of transparency  Conflict and misunderstandings  Member apathy  Wasted time, money and other resources  People are not protected
  18. 18. Governance Issues to Consider • One member one vote • Delegated powers • Consistent representation • Mediation of the different interests within the consortium • Membership • Decision making • Document control • Quality management procedures & project management
  19. 19. Legal Considerations Issue Potential Solution Clear Understanding of the Relationship Between Consortia Members Joint Working Agreement Disclosing sensitive information Non-disclosure Agreement Collective Ownership of Assets Creation of a Trust Declaration of Trust Document Ownership of Products / Services Be clear on any potential Intellectual Property issues Role of the Lead Body Managing Agent Contract
  20. 20. Legal Considerations Issue Potential Solution Delivery within a Lead Body Model Sub-contract Agreement Engaging with New Members Accession Agreement Membership Prospectus Ensure the Consortium is Recognised as Social Enterprise in its own Right Socially Structured Memorandum and Articles of Association Clarity on Role of Steering Group in Lead Body Model Terms of Reference
  21. 21. Legal Considerations Issue Potential Solution Employing People Contracts of Employment HR Policies Taking on Assets Lease / Freehold Agreements Payment of Partners Internal Payment Schedule Costs Open book information Revenues and profits Joint working agreement
  22. 22. Our Role • Advice on suitable business models, organisational and legal structures • Advice and support with governance issues • Business and financial planning advice and support • Finding finance and helping to access grant funding where appropriate • Support with HR issues • Support with developing important equalities strategies and environmental management systems • Training and mentoring
  23. 23. Contact Details Rhian Edwards Tel: 02920 556958 Mobile: 07867 788510 Email: rhian.edwards@walescooperative.o rg Sarah Owens Tel: 01792 484006 Mobile: 07760 885634 Email: sarah.owens@walescooperative.or gPaul Cantrill Tel: 02920 556159 Mobile: 07917 844856 Email: