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Slide 1
Commodity Profile & Strategy for the [Contract / Framework Agreement] for: [insert]
Reference: [insert]For info – delete text prior to issue
This strategy document is also commonly referred to as a procurement or purchasing strategy. The strategy is used in the planning stage of any procurement to determine how key issues will be addressed e.g. route to market, CSR issues, pricing strategy etc which is then translated into the
procurement process and documentationIt identifies and minimises risk and assists in ensuring all key factors have been taken into account
when conducting the procurement leading to fit for purpose and VFM.
The term ‘commodity’ is a common procurement terms used to refer to any purchase.
© APUC LIMITED 2009- See terms of permitted use on the Sector Procurement Manual’s Home page
Slide 2
Version Control
Version Name Date Completed Comments
When drafting and amending the Profile & Commodity Strategy, the Procurement Officer should complete the above table to ensure changes can be tracked and queries can be directed to the appropriate User Group member/others as appropriateWhen drafting and amending the Profile & Commodity Strategy, the Procurement Officer should complete the above table to ensure changes can be tracked and queries can be directed to the appropriate User Group member/others as appropriate
Slide 3
Procurement Decisions & AuthorisationsComplete from the Decision Tree questions prior to completing rest of Strategy
Record & retain decision for audit
trail, abort planned procurement and delete remainder of Strategy slides
Yes
No
Can you utilise an internal,
unused or now surplus to
requirements resource? E.g. AUPO surplus
equipment scheme.
Requirement to be procured as a Cat C or C1 [insert which
applies]?
Estimated Cost [insert £ value excl VAT]
Budgetary Authority: approval obtained by [insert name & date]
Purchasing Authority: approval of Procurement
Officer to procure the requirement given [insert
name & date].Proceed with completing
Commodity Strategy
Slide 4
Except where stated as optional, below is the recommended mandatory minimum contents of the Profile & Commodity Strategy. Other slides can be added on a commodity specific basis as appropriate. Further slides are contained in the Scottish Public Sector Toolkit
Contents Slide Number• Version Control 2•Procurement Decisions and Authorisations 3• Consultation with HoP (delete slide prior to issue for signoff) 5• Executive Summary 6• User Group role & Input 7• Stakeholder Contacts 8• Business Requirements 9•Scope 10• Expenditure Analysis 11• Total Cost Model (OPTIONAL) 15• Supply Market Overview 17• Benchmarking Opportunities 21• Risk Analysis - Including Barriers to Change 22• Corporate Social Responsibility 23• Strategic Tendering Options 26•Prior Information Notice 28• ITT Considerations 29• Information re evaluation of references, site visits & presentations 31•PQQ/Tender Award & Weighting Criteria 32• Contract Implementation 35• Strategic Contract Management 37• Commodity Project Plan 38• Commodity Life Cycle & Technology Roadmap (OPTIONAL) 39• Supply Chain Considerations (OPTIONAL) 40• Sign-Off 41
Contents:
Slide 5
Recommended consultation with the Head of Procurement
Procurement Officers should seek advice from the HoP in the following circumstances:
where Single Tender Action (non competitive action) is proposed
where a procurement has a strong potential to influence CSR issues
where an extension to a contract or framework agreement is proposed
where the negotiated procedure, competitive dialogue, or dynamic purchasing system is the proposed tendering option
where it is proposed to shorten the EU minimum tendering timeframes or use the Accelerated Restricted procedure (NB use of the Accelerated Restricted MUST be highlighted in the Contract Notice. For further information about the Accelerated Restricted Procedure please refer to this Scottish Procurement Policy Note (SPPN 1 2009): http://www.scotland.gov.uk/Resource/Doc/1265/0076383.pdf)
where it is proposed that the duration of a framework agreement will exceed 4 years
where TUPE may apply
Slide 6
Executive Summary – Procurement Officer to complete this slide after completion of the Strategy and prior to forwarding for agreement by the User Group and sign off by the Head of Procurement
Current status: [list]
Spend – total versus addressed: [list]
Scope: [detail]
Strategic recommendations and reasoning: [detail]
Benefits – how much, how, by when? Examples:
Price parity opportunities of £a achievable by DATE
Benchmarking opportunities of £b achievable by DATE
Market competitiveness £c by DATE
Product standardisation/ rationalisation potential of £d, assuming xyz by DATE
Supply chain redesign, moving to ex-works, £e by DATE
Any major barriers to success: [detail]
Slide 7
User Group Role & Input
Procurement Officer to agree with the User Group their role, responsibilities, input and actions at each stage in the strategic sourcing process e.g.
Procurement Officer to agree with the User Group who will agree the final draft of the key stage documentation e.g. all or a nominated number of User Group members re the strategy, award recommendation etc
[if applicable]: Procurement Officer to agree with the User Group the role User Group members will play in PQQ evaluation [insert] e.g. Procurement Officer to evaluate all sections of PQQs and the User Group to evaluate Part E only
PPS to agree with the User Group the role the User Group members will play in ITT evaluation [insert] e.g. Procurement Officer & User Group (or nominated individuals) to evaluate technical aspect of tenders and Procurement Officer to evaluate commercial aspects etc.
PQQ/ITT results will be revealed by the [overall weighted results/ the average] of Tender Evaluation Board scores etc
Refer to: User Group Interface Model - detailing actions required in the various stages in the procurement
process
Slide 8
Stakeholder (& User Group) Contacts for [Contract/Framework Agreement]
List names and contact details of all stakeholders relevant to this commodity:
Name Job Title Division Contact Tel E-mail
Slide 9
Business Need and Functional Requirements
XXXXXXXXXXXX
Institution Requirements
Where we are…Where we are…
What does the commodity do, standard v customised, level of customisation, quality requirements, real v perceived function, service requirements, user perception, value to institution, specific specifications
Consider the procurement innovation issues for highly complex procurements
What does the commodity do, standard v customised, level of customisation, quality requirements, real v perceived function, service requirements, user perception, value to institution, specific specifications
Consider the procurement innovation issues for highly complex procurements
Where we want to beWhere we want to be
NB use of generic specifications – if these don’t exist the User Group needs to start working on them as soon as possible
NB use of generic specifications – if these don’t exist the User Group needs to start working on them as soon as possible
Slide 10
Scope of [Name of Commodity]
Scope the commodity to be covered i.e. what is included in this commodity group, breakdown into sub-commodities, which products fall under which sub-commodity.
•Cleaning & Hygiene systems for kitchen and general cleaning
Cleaning MaterialsCleaning Materials
Laundry ChemicalsLaundry Chemicals
Hygiene Care PlansHygiene Care Plans
Cleaning and Laundry
•Detergents•Disinfectants•Oven Cleaner•Deodoriser•Furniture Cleaning Products•Soap Powder/Tablet for dishwashing•Alcohol / Detergent Wipes
• Laundry Detergents• Laundry Conditioners• Laundry Bleach
Potential Future Developments
Potential Future Developments
Cleaning EquipmentCleaning Equipment
•Floor Pads•Cleaning Bucket•Brush’s•Mop’s and associated equipment•Disposable gloves – PVC / Marigold, initial discussion with medical category identify a potential to purchase from medical contract
Example
Slide 11
Expenditure Analysis - Spend Distribution
In scope spend broken down by supplier and by sub-commodities: [detail]
What is the value of the requirement? How does this inform the procurement process?
Procurement Officer to add an acknowledgement, for future reference, of the source(s) of data used: Procurement Officer to add an acknowledgement, for future reference, of the source(s) of data used:
Slide 14
[Commodity] - Typical Cost Breakdown
Profit 10%Complete the breakdown for the commodity
xxxxxxxx
What are the recommendations
Recommendations
Slide 15
Total Cost Model [Name of Commodity] (OPTIONAL)
List the activities carried out under each step of the product life cycle, Determine the impact of each step on the total cost of ownership in terms of High, Medium or Low, Brainstorm the cost drivers associated with the activities under each step, Determine the opportunities in each area. Which costs can be reduced (savings)/avoided (cost avoidance)?, Identify Low, Medium and High Savings Opportunities, Identify the barriers and enablers related to realising the opportunities
Raise Need Acquire / Order Use Dispose
Activities:
Impact:(on TCO )
Cost Drivers:
Savings Opportunity:
Barriers:
Enablers:
Slide 16
Total Acquisition Cost (OPTIONAL)
Sample Cost DriversSample Cost Drivers
Uniform specification and range
Delivery frequency and location
Order frequency
Order value
Requisition to P/O
Returns
Queries
Reporting
Goods receipt
Sewing Rooms
Delivery
Uniform specification and range
Delivery frequency and location
Order frequency
Order value
Requisition to P/O
Returns
Queries
Reporting
Goods receipt
Sewing Rooms
Delivery
Supplier Costs Total Acquisition Costs Organisation’s Costs
ProductDrivenCosts
Customer Driven Costs
OrderFulfilmentCosts
Cost Drivers e.g:
•Product specification and range
• Delivery frequency and location
•Order frequency
•Order value
•Lead time
•Material• Labour•Overheads•Warehousing•Special tooling
•Quality specifications•Defects/rejects/returns•IT Costs•Customer support•Sales
AdministrationCosts
OrderFulfilmentCosts
OrderFulfilmentCosts
OrderFulfilmentCosts
•Inventory handling•Transportation•Picking & Packaging
•Requisition to P/O•Order Transmission•Expediting•Invoice Reconciliation•Timely Payment•Queries•Reporting
•Defects•Inspection•Rejects•Repackaging•Reshipping
•Storage costs•Labour•Overheads
•Goods receipt•Delivery•Requisitions
Example acquisition costs:
Slide 17
Supply Market Overview
Market Trends – detail what is happening in the market for the commodity, current and future technologies, changing customer demands, new players, mergers and acquisitions
Supply Market Share – detail the key players within the industry, identify size in terms of turnover, sales, number of customers and capacity
NOTE: trends are important - they reveal:
•who is winning/ losing business
•who’s trying to win market share in the UK
•whose business objectives match the sector
•what do profit margins typically look like for the industry
Slide 18
Current Contract Position– [Contract/Framework Agreement]
Contract Contract Value Contract Start/End Dates (plus any extension period (s)
Comments
Slide 19
Current Suppliers of [Name of Commodity] to Institution
Current Suppliers of [Name of Commodity]Current Suppliers of [Name of Commodity]
SupplierSupplier SpendSpend Total RevenueTotal Revenue Background on the SupplierBackground on the Supplier
xxxxxx
xxxxxx
xxxxxx
xxxxxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxxxxx xxx xxx xxx xxx xxx xxx
Slide 20
Main Suppliers in the Market in Context of their Total Institution Business
SupplierSupplierInstitution Spend on
Commodity
Institution Spend on
Commodity
Institution Total Spend
Institution Total Spend
Other commodities supplied; recent Institution business awards or losses; other business they are tendering for…etc
Other commodities supplied; recent Institution business awards or losses; other business they are tendering for…etc
xxxxxx
xxxxxx
xxxxxx
xxxxxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxx xxx
xxxxxx xxx xxx xxx xxx xxx xxx
Slide 21
Benchmarking Opportunities
Product Pasa Price NHSS Price
Notes
Apron Yellow 25mu 1.90 1.82 -
Apron Clear 20mu 1.57 1.77 -
Apron Blue 20mu 1.90 1.82 -
Yellow Clinical Waste 26mu
12.48 15.93 -
Black Houshold waste bag
12.66 10.08 PASA currently use only the 30&40mu, NHSS use 50,40&30mu. Those Health Boards that are using the 50&40mu are currently being identified with a view to standardising to the 30mu
EXAMPLE
Look to understand opportunities from: what the Institution currently pays; and, from benchmarking with other organisations e.g. PASA, Value Wales, N Ireland Procurement Service, OGC, Scotland Excel, councils, fire and police service, private sector etc
Slide 22
Risk AnalysisRisk Analysis
Description of RiskDescription of Risk
xxx xxx
Probability of Risk
Probability of Risk
High / Medium / Low
High / Medium / Low
Implications to InstitutionImplications to Institution
xxx xxx
xxx xxx
xxxx xxxx
High High
xxxx xxxx
Measures to Minimise / Eradicate Risk
Measures to Minimise / Eradicate Risk xxxx xxxx
xxxx xxxx xxxx xxxx
xxxx xxxx xxxx xxxx
Risk Analysis for [Name of Commodity] Inc Barriers To Change
Slide 23
Corporate Social Responsibility (CSR)
Procurement Officer & User Group to consider CSR issues relevant to this procurement:
General issues: [list]
Result of the Risk Coding Analysis for [goods/services] regarding relevance and risk: [detail results: Equality: X, Environmental/Sustainable: X , WEEE/disposal: X, Social issues: X ] and the impact will be managed by [detail]. NB: The risk coding analysis results inform the degree of relevance and risk in the above 4 areas associated with the commodity being procured. Taken together with the outcome from completion of the SPRAT (see below), this will enable the PPS/User Group to accurately target these areas in the PQQ/ITT CSR Questionnaire.
Completion of the Sustainable Procurement Risk Assessment Tool (SPRAT) for [goods/services]: The resulting actions are required to be managed by [detail] NB: areas may already be adequately covered by the existing CSR questions.
PQQ CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require completion by PQQ applicants
ITT CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require completion by tenderers
CSR Guidance from Scottish Government and EAUC resource bank ITT Statement of Requirements: consider the applicability of the Buy Sustainable-Quick Wins product specifications detailed in
SPPN 15/2008. NB: these contain a set of sustainable specifications covering a range of commonly purchased products and are considered best practice
* Part of the AUPO revised CSR Toolkit (the Risk Coding Analysis and SPRATS have been created by the Environment Agency on behalf of the UK Government)
Slide 24
CSR
SMEs, Supported Businesses & Social Enterprises* including Social Issues** & Community Benefits:
barriers to participation identified as: [insert]. The proposal for removing barriers to participation is [detail] e.g. lotting, sub-contracting opportunities, consortium member etc.
Further information relating to SMEs is contained in SPPN 2/2009 and SPD Buyer’s Guide. Identification of any social clauses or community benefits relevant to this procurement: [list]
NB: areas may already be adequately covered by the existing PQQ/ITT CSR Questionnaire.
Reserved Contract under Regulation 7 of the EU Procurement Regulations: applicable to the contract/framework agreement?: [Yes/No] and brief reason if not [detail]. Refer to Paragraph 3.5 of the Procurement Manual for guidance.
*refer to Procurement Manual for information on supported businesses and social enterprises.
** social issues might broadly be defined as issues which impact on society or parts of society and cover a range of issues including equalities issues (i.e. age, disability, gender, race, religion and sexual orientation), training issues, minimum labour standards and the promotion of small and medium-sized enterprises (SMEs), including black and minority ethnic enterprises and the third sector including social enterprises. Refer to SPPN 03 2008 for community benefits guidance or SPPN 06 2007 for social issues guidance
Slide 25
CSR
Race Equality – Impact AssessmentTo determine whether race equality is a core requirement in a contract or framework agreement for goods, services or works, the following questions should be considered:
1. What is to be provided under the contract or framework agreement? [list]
2. Is the provision of the goods, services, or works one of the functions or policies relevant to meeting the duty to promote race equality? [Yes/No]. Refer to Section 6 of the Procurement Manual
3. Is the provision of the goods, services or works likely to affect (directly or indirectly) the ability to meet the duty to promote race equality? [Yes/No]
4. Is it necessary to include requirements for promoting race equality in the contract to make sure the duty is met? [Yes/No]
5. What race equality requirements are appropriate for the contract or framework agreement? [list]
If the answer to questions 2, 3, or 4 is ‘Yes’, race equality is a core requirement. Refer to paragraph 3.7 of Procurement Manual which details how and where race equality should be implemented into the strategic sourcing process.
Slide 26
Strategic Tendering Options
On the basis on the internal and external analysis, plus opportunity assessment, detail the available options and the pros/cons of each. Several examples are detailed below:
Option 1: Extend current contract (if provision within contract to do so) Pros: analysis shows limited opportunity in this area compared with rest of portfolio, would
achieve savings whilst minimising resource effort; Cons: will not optimise savings as suppliers looking for volumes commitments which is
dependant on extended work with stakeholders
Option 2: Use APUC framework for next 12mths to allow quick win and gathering of better management information
Pros: initial assessment shows saving of 3% on contract, this could be quickly implemented and allow management information to be collated as currently data is poor
Cons: comparisons with industry suggest savings of 20% if had Institution commitment contract
Option 3: Institution to tender for a Category C/C1 contract for x years, with the aim of being in y position in z period of time e.g. product rationalisation as part of contract requirements. Intention would be dual supply award to maintain competitive tension etc
Pros: formulise requirements Cons: resource effort involved given other portfolio opportunities have higher potential
Slide 27
Strategic Tendering Options
Lead-In Period - detail period required: NB: consider the period for implementing the commodity onto PECOS agreed with your local ePS team during the project start up stage
Extension Period: detail any proposed period (s): [insert]
Tendering route to demonstrate competition: following the [e.g. Open/Restricted] procedure [using an e-auction] because [insert justification]
[delete as applicable] A Contract will be established OR
A Framework Agreement will be established as follows:
framework route: [single supplier/multi-supplier]
multi-supplier framework lots: [insert number proposed] and the justification for this is: [detail]
Call Off Contract mechanism: [direct/ranked/ mini competition] and the justification for this is: [detail]
Prior Information Notice (PIN)
Use of PINs is not mandatory. PINs can be published through OJEU in order to alert the market to forthcoming contract opportunities.
Once a PIN has been published, reductions in timescales for competitions identified in the PIN are possible.
PIN should be published at least 52 days before and not more than 12 months before the contract notice.
The PIN should contain details of supply and services contract for which the public body expects to seek tenders in the next 12 months.
PINs must be published on OJEU website (this can also be done through the Public Contracts Scotland website).
Slide 28
Slide 29
ITT Considerations (particularly relevant to consider at this stage in more detail when the Open Procedure is proposed so as to reduce the time taken to compile the ITT at the ITT composition stage)
Statement of Requirements (SoR): the main areas and issues needing to be inserted into the SoR are: [detail]
IPR: [IPR does/doesn’t apply]. If IPR applies, the impact is [detail]
TUPE: establish if TUPE is likely to apply: [Yes/No]. If yes, obtain the following detail for insertion in Schedule 4 of the ITT: name(s), sex, employment location of individuals who may be subject to TUPE and consult with the HoP or Human Resources or seek legal advice.
Monitoring & Evaluation: • View the core areas detailed in Schedule 4 of the ITT and detail the KPIs to apply: [insert]
• Will KPIs be for information only? If there are to be consequences if KPIs are not met this should be referenced in the ITT Schedules 2 and 6.
• Detail any other performance indicators or management reports required (other than detailed already in Schedule 4 of the ITT): [insert]
Pricing Strategy: detail the how the commodity will be priced (taking into account whole life costing and cost
avoidance). Can an e-Auction be utilised for this commodity? [yes/no] State the period of price stability (e.g. 1 year etc) and the reasoning for this: [insert]
Slide 30
ITT Considerations
Mechanism for addressing variation in the charges e.g. via RPI/CPI etc: [detail]. More info can be found at www.statistics.gov.uk/statbase/product.asp?vlnk=868
State the payment period: [detail] NB: if no date is inserted, the default position under the Late Payments of Commercial Debts Act 1998 is 30 days
Parent Company Guarantee: state if either is to be included in the ITT for the framework agreement and/or call off contracts or a contract and why use would be beneficial: [detail]
Ts&Cs: list any clauses required over and above the standard ts&cs: [list]
Questions for tenderers (to populate Schedule 6 of the ITT): [detail in outline]
Part B services: If the procurement is considered to be high risk/high value, a standstill period should be considered (with reference to Federal Security Services Ltd vs Police Service of Northern Ireland).
Information re Evaluation of References, Site Visits, and Presentations References: In a Restricted procedure, ascertaining an applicant’s past experience in terms of “technical or professional ability” (as determined by
Regulation 16(7)(b)(ii) of the Public Contracts (Scotland) Regulations 2006) can be included in a Pre Qualification Questionnaire as a section criteria. Written evidence of past performance, which can be objectively evaluated, can be used but it is not recommended written evidence is used as a Minimum Standard. Standard forms can be used to request references , but returned references should then be used for information purposes only.
The above also applies to an Open procedure.
Site visits: If a site visit is required before tender return i.e. to be used to inform tenderers more clearly regarding the outputs of the requirement
e.g. visit to an Institution's property or visit to a new build, then this is not evaluated.
If a site visit is deemed to be required post tender return and as part of evaluation process (because the information to be ascertained from the site visit directly relates to the subject matter of the Contract or Framework Agreement), this must be detailed as an award criteria in the Contract Notice or ITT, be capable of evaluation, and make clear what is being assessed in the site visit.
Presentations: If a presentation is deemed to be necessary as part of tender evaluation and/or bid clarification, it can only be used for information
purposes and cannot be detailed as an award criteria in the Contract Notice or ITT and used to evaluate tenders because it is subjective, and not capable of objective evaluation i.e. performance at interview is not an evaluation criteria.
Evaluation of a presentation’s written output is permissible where as part of bid clarification tenderers are requested to present on common areas in the submitted tenders (which following tender evaluation have been revealed to be areas where clarification would be needed). These areas cannot be in addition to the award criteria detailed in the Contract Notice or ITT.
Ensure any area of concern remaining after the presentation is followed up in writing as part of bid clarification.
Slide 31
Slide 32
PQQ Selection CriteriaFurther information OGC Selection/Award criteria PPN
Part A – Background Information Part B – Economic & Financial Standing
Part C – Conviction of Criminal Offences
Part D – Business Probity
Part E – Technical & Professional Ability
NB - If restricting number of PQQ applicants, the minimum**/maximum number able to participate is: [number]. NB: clarify if this number relates to per lot or to the overall framework
** minimum number must be 5
Part A - Section not scored – for info only
Part B - Insert minimum standards in the Contract Notice or list as objective criteria in section III.2 in the Contract Notice - Institutions should follow their own guidelines for Financial Analysis. See APUC’s of Financial Analysis of Accounts* for recommended levels. NB: if minimum standards are set and aren’t met, the applicant should be excluded from the process
Part C - If the applicant answers ‘Yes’ to any question they MUST be excluded from the process
Part D - If the applicant answers ‘Yes’ to any question they MAY be excluded from the process
Part E - If minimum standards are set and aren’t met, the applicant should be excluded from the process otherwise use objective scoring criteria to shortlist those applicants meeting minimum standards
* Institutions can access APUC’s guidance composed for conducting the collaborative procurements, use alternative or in-house resources
Selection Criteria:
REFER TO PQQ GUIDANCE NOTE
Criteria:
EXAMPLE
We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process
We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process
Slide 33
ITT Award & Weighting CriteriaFurther information OGC Selection/Award criteria PPN
Award Criteria: award criteria is based on [MEAT/lowest price]
Price Quality Ratio:[insert]
Weighting Criteria:
EXAMPLE
We need to ensure that we are able to objectively score against each award criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process
We need to ensure that we are able to objectively score against each award criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process
Minimum Standards (if necessary)Service Delivery – Details Requirements PASS/FAIL
Service Delivery – Detail Requirements PASS/FAIL
CSR – Detail Requirements PASS/FAIL
Supplier Stability & Viability – Detail requirements PASS/FAIL
EXAMPLE
PQR Weighting (%)
Award CriteriaSub-
weighting (%)
In this example the headings below are for six award criteria. All questions to be asked of tenderers in the ITT must relate to this criteria and have corresponding weighting. Any sub-criteria and weightings must also be listed. Refer to ITT Schedule 6 for further info.
Price 40% - 100%
Quality 60%
Service Delivery 20%
Design Scenarios 25%
Staffing 5%
Project Planning & Implementation 25%
Warranty & Support 10%
Continuous Improvement 15%
Slide 34
ITT Call Off Contract Award Criteria
[insert criteria] [insert weighting]
Award Criteria:award criteria is based on [MEAT/lowest price]
Price Quality Ratio:[insert]
Weighting Criteria:
EXAMPLE
We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process
We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process
Slide 35
Contract Implementation – Lead-In Period
Detail what will need to happen, when, and whose responsibility is it to e.g.:
Conduct product trials (if applicable) Start running down stocks of current product ranges (if applicable) Prepare/ complete any required training Clarify supplier change management/ implementation expectations Ensure smooth transition Follow-up on progress
Note requirements for completion later in the strategic sourcing process: Systems updates, Savings notification Notification and award letters Buyers Guide/ Commodity Action Report (CAR) etc
Slide 36
ePS Trading Strategy
Detail how End Users will see and access the [Contract/Framework Agreement] content in PECOS:
1. Use APUC’s Supplier Report showing ePS active suppliers through Institutions & ePS Supplier Report to determine PECOS:
Content Availability
Connection Type
2. Develop a list of specific and general ePS issues / requirements relevant to the commodity:
[list]
Plan how these will be accommodated on PECOS: [detail]
3. Decide PECOS trading strategy:
on catalogue
Catalogue
Punchout
Slide 37
Strategic Contract Management
All contracts or framework agreements will be contract managed by the Procurement Officer (or delegated officer(s). Refer to Schedule 4 of the ITT for Procurement Officer and User Group roles and responsibilities.
Note that once the pan Scotland strategic contract management guidance, processes, and templates are
available, these will be incorporated into the strategic sourcing documentation.
Slide 38
Commodity Project Plan (complete as applicable)
Open Procedure Complete and attach the Commodity Project Plan
Restricted Procedure Complete and attach the Commodity Project Plan
Competitive Dialogue Procedure Complete and attach the Commodity Project Plan
Negotiated Tendering Procedure Complete and attach the Commodity Project Plan
E-Auction in an Open or Restricted Procedure Complete and attach the Commodity Project Plan (open)
Complete and attach the Commodity Project Plan (restricted)
Slide 39
BMS DES Branched DES
Bio absorbable DES
1999 To 2005 2005 to 2007 Future
Pric
e
Now ??
Commodity Life Cycle & Technology Roadmap Considerations (OPTIONAL)
•By looking at product developments in the context of life cycles we can estimate the time based impact on price
EXAMPLE
Product Introduction
Early Adoption
Product Maturity
Product Decline
Life Cycle
Technology Roadmap
•By understanding where a product is in its lifecycle we get an insight into suppliers likely approach to price and market share
Slide 40
Supply Chain Considerations (OPTIONAL)EXAMPLE
Mapping the Supply Chain will allow institution to understand additional benefits to it from the restructuring of the Supply Chain
Mapping the Supply Chain will allow institution to understand additional benefits to it from the restructuring of the Supply Chain
Distributor link to be removed going forward
Dispatched to hospital
DistributorSSS
ManufacturedUK
Dispatched to hospital
Shipped toRMS Stirling
Shipped toCardinal Health
ManufacturedMalta
RMS Healthcare65651930
Abbot
Dispatched to hospital
DistributionSSS
Direct dispatch to hospital
WarehouseSelby, UK
ManufacturedFinland (Serres)
Procare / Serres VacSax9910-208
Suction Liners
Slide 41
Commodity Strategy Sign-Off – User Group & Head of ProcurementUser Group:
NAME TITLE DEPARTMENT DATE
Head of Procurement:Profile & Strategy approved by Head of Procurement: ……………………………..
Date: …………………………
Head of Procurement:Profile & Strategy approved by Head of Procurement: ……………………………..
Date: …………………………
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