ef40778c82b5bd359a4a8611c2864618.ppt
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Procurement Reform: The Need for Better Supply Chain Management John Collington Chief Procurement Officer
Points to Cover • The Need for Reform • Our Strategy & Targeted Outcomes • Progress/Performance to Date • Procurement Supporting Growth
The Need for Reform From 09/10 Baselines: • Not leveraging our purchasing spend • Procurements too complex and long • Too much reliance on consultants • ‘Big was beautiful’
Strategy & Key Targeted Outcomes Ministerial Buy In and Commitment ØIncrease in spend through GPS ØHigher % of CS staff trained Processes tt. . ov ov G G People s ie Technology ic ol P Results ØDeployment of enabling technology B ØReduction in sourcing time & cost ØMore contracts & spend with SMEs ØSustainable savings through CSR ØBetter perception of Procurement! Deficit Reduction + UK Growth = Burning Platform
Progress to Date • Full Ministerial commitment & support • £ 3. 75 bn savings achieved in the first year • £ 1. 4 bn on CCL : £ 800 m through CCR work • Lean Standard Operating Procedures • Enabling technologies being implemented • Transparency driving behavioural change>>>
e. g. New Contracts Awarded to SMEs
Managing the Balance is Challenging but Achievable! More Business with SMEs Savings & Value from Every £ Spent
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Just Some of the SME Successes
Friday 18 th September Whitehall's £ 1. 1 bn UK travel needs handed to small business. In a sign that the Government is serious about handing more work to small businesses, Whitehall. . . has awarded the domestic part of a potential £ 2. 6 bn contract to Yorkshire-based Redfern Travel. UNCLASSIFIED
Procurement Supporting Growth • Sharing ‘pipeline’ opportunities • Pre procurement market engagement • Investment: sourcing & supplier management • Simplified procurement processes: 120 days • Procurement supply chain management
Supply Chain Management • Thought & planned for - pre procurement • Can and will include supplier development • Open & fair opportunities for SMEs to compete • Visible and managed tiers - no longer ‘hidden’ through the prime • Will apply to projects, sectors & categories>>>
Government CIO Supply Management e. g. For Government ICT Government CPO • Joint programme - highest level governance & ambitious targets • Focused on transparency, standards and new ways of working • Will deliver new supply routes, contracting vehicles & better reuse, more SMEs and savings
In Closing: Key Messages for Today • Procurement Reform is making a difference, but still has a way to go • We are committed to making procurements faster, easier & more transparent • We are improving our procurement capability in people and technology • Procurement and Supply Chain Management can and will be better leveraged to support Growth
ef40778c82b5bd359a4a8611c2864618.ppt