COUP 2015Case Study: Flexible Framework: The University of Manchester Approach.

Ian JarveyDeputy Head of Procurement

Jimmy BranniganNETpositive Futures

Overview• Context:

• Background on the University of Manchester• Manchester’s Vision

• Our approach to the Flexible Framework• A couple of quotes from a local boy Geoffrey Chaucer:

‘Time and tide wait for no man’ – GET ON WITH IT

‘People can die of mere imagination’ – IT ISN’T AS

SCARY AS YOU THINK

The University of Manchester

University Estate: Investing £1BN

2020 Vision

Goal 1 World Class Research: to be one of top 25 research universities in the world Goal 2

Outstanding learning and student experience

Goal 3Social Responsibility: Contribute to the social and economic success of the community

What does Social Responsibility look like?

ADDRESSING INEQUALITIES

ETHICAL GRAND CHALLENGES

SCHOOLS GOVERNORS INITIATIVE

CULTURAL ACCESS PROGRAMME

THE WORKS

STAFF STEPS TO SUSTAINABILITY

Strategic Priorities Signature Programmes

Key drivers for responsible procurement at the University of Manchester are:

• To take a meaningful lead as the largest UK university• To support our commitment to Social Responsibility and

Environmental Sustainability• To strive to have a positive impact through our spend – by

reducing negative impacts and enhancing positive impacts

Where did we start?

Refresher: Flexible FrameworkFoundationLevel 1

EmbedLevel 2

PracticeLevel 3

EnhanceLevel 4

LeadLevel 5

People • Champion• Basic training• Induction

• Purchasing Staff trained

• Key staff advanced training

• Refresher training• Performance

objectives• Incentives

• Competences and selection

• Embed in induction

• Publicity to attract staff

• Internal/external recognition

• Share practice

Policy, Strategy & Communication

• Objectives agreed• Simple policy• Endorsed by CEO &

communicated

• Review policy and supplier links

• Wider strategy• Communication

• Widen strategy to review risk etc.

• Endorsed by CEO

• Enhance strategy & new technologies

• Link to EMS etc.

• Regular review and linked EMS etc.

• Communication and publicity

Procurement Process • Spend analysis and impacts

• Key contracts reviewed and awarded VFM

• Detailed spend analysis and prioritisation

• Consideration early & WLC

• All contracts reviewed and full risk approach

• Key suppliers targeted

• Detailed high risk contract review

• Contract governance cycle & life cycle cost

• Life cycle commodity approach

• Targets agreed with supplier

• Best practice shared

Engaging Suppliers • Key supplier spend/impact known

• Key suppliers engaged

• Detailed spend analysis

• General programme supplier engagement with senior support

• Targeted improvement programme

• Two way communication

• Supply chain mapping

• Intensive development key suppliers

• Audits and improvement plans recorded

• CEO involved

• Suppliers key role in delivery

• CEO engages• Best practice shared• Suppliers recognise

need to follow best practice to remain

Measurement & Results

• Key impacts of procurement activity identified

• Detailed appraisal of impacts undertaken

• Measures implemented to manage high risks

• Sustainability measure refined from general measures and linked to objectives

• Integrated into balanced score card

• Comparison with peers

• Benefit statements

• Measures drive organisational strategy

• Benchmarking• Independent audits

Team development at the core, plus:

• Governance and Strategic Commitments• Materiality Analysis • Risk and impact analysis• Supplier Engagement• Staff Support and Guidance• Measurement and Reporting

Governance and Strategic Commitments

Materiality Analysis Environmental Priorities Social Priorities Economic Priorities- Reducing carbon

emissions- Reducing utilities

consumption- Sustainable management

of waste- Energy efficiency- Maximise resource

efficiency- Increasing biodiversity on

campus- Contributing to national

and international understanding of environmental issues

- Utilities management- Behaviour change

- Supporting local communities

- Supporting national and international communities

- Community engagement- Improving sustainable

travel practices- Staff wellbeing- Staff engagement

- Socially responsible investing

- Sustainable procurement- Investment in public

realm- Value for money- Whole-life costing- Exploiting in-house

expertise

Targets tracked against Strategy

Environmental Del

iver

ies

per

wee

k

Who

le li

fe c

ostin

g

Ener

gy u

se

Zero

was

te c

onst

ructi

on

Recy

cled

con

tent

End

of li

fe r

ecyc

labi

lity

Redu

ce p

acka

ging

Sust

aina

ble

trav

el o

ption

s

Vide

o co

nfer

enci

ng

Enga

ging

sup

plie

rs o

n su

stai

nabi

lity

Reducing carbon emissions

Reducing utilities consumption

Sustainable management of waste

Energy effi ciency

Maximise resource effi ciency

Increasing biodiversity on campus

Contributing to national and international understanding of environmental issues

Utilities management

Behaviour change

Targets tracked against Strategy

Social Jobs

crea

ted

appr

entic

esLo

cal w

orkf

orce

Loca

l sup

plier

sSt

aff sk

illsTr

ainin

g on

site

Supp

ly ch

ainM

eet t

he b

uyer

even

ts

Supporting local communities

Supporting national and international communities

Community engagement

Improving sustainable travel practices

Staff wellbeing

Staff engagement

Targets tracked against Strategy

Economic Cont

ract

s le

t to

loca

l con

trac

tors

SMEs

in s

ubco

ntra

cts

Livi

ng w

age

Socially responsible investing

Sustainable procurement

Investment in public realm

Value for money

Whole-l ife costing

Exploiting in-house expertise

Risk and impact analysis• Detailed spend review – level 2 Proc-HE codes• Marrakesh risk review• Prioritise spend categories – high risk & spend• 2014 – 72 • 2015 - 63

• NETpositive analysis to identify a range of issues that could be addressed through the procurement process

All Level 4 Activity!

Supplier Engagement• Taking a pro-active and innovative approach• Capturing impact and supporting supplier

development in this area simultaneously• Currently being rolled out to all suppliers

In the first 3 months:

• 126 businesses have started an Action Plan

• 634 individual actions ‘completed’ or ‘in progress’

• 297 pieces of evidence added to support these actions

AA Audio V

isual E

quipm

ent

BE Libra

ry su

bscrip

tions

CB Bakery

pro

ducts

CG Cate

ring equip

ment m

ainte

nance &

repair

CK Tableware

, cro

ckery

, cutle

ry, ta

ble coverin

gs etc

DA Capita

l equip

ment >

£10k

DH Diagnosti

c serv

ices

FZ Oth

er and genera

l furn

iture

, furn

ishin

gs and te

xtiles

HZ Oth

er and genera

l cleanin

g & ja

nitoria

l

KE Software

purc

hase, m

ainte

nance, d

evelopment &

royalti

es

KZ Oth

er and genera

l com

puter

LC Laborato

ry Sm

all Appara

tus a

nd Equip

ment P

urchase

& H

ire

LH Laborato

ry ch

emica

ls - o

rganic

& inorg

anic

LN Laborato

ry gase

s purc

hase and ass

ociate

d renta

ls

LY Laborato

ry w

aste d

isposa

l - cl

inica

l and ch

emica

l

MZ O

ther a

nd general w

orksh

op and main

tenance

supplie

s

QE Mail s

ervice

s overs

eas/in

tern

ational

RK Tem

porary

staff

& employm

ent agencie

s

SF Papers

(photo

copyin

g etc)

TO Stora

ge and ware

house se

rvice

s

UD Safety

and pers

onal pro

tecti

on equipm

ent

WC D

ecora

tion m

ateria

ls, w

orks a

nd serv

ices

WQ W

aste and re

fuse

disp

osal

XZ Oth

er/genera

l misc

ellaneous

0

2

4

6

8

10

12

Engagement by Commodity Code

We make work accessible to people from all backgrounds C Catering Supplies

& Services

L Laboratory/Animal House Supplies & Services

Others

Selection rate

29%

61%

63%

What are we finding out and what are we going to do with the information?

Measurement and Reporting

• Commitment to annual reporting• Sharing our own learning with the sector• Demonstrating progress against targets• Demonstrate our positive impact• Celebrating our success

Achieving some recognition for hard working procurement teams!

We think Responsible Procurement offers:

• A real opportunity to demonstrate social impact and social value

• An opportunity to utilise procurement to deliver the social commitments of the institution

• An opportunity for procurement to take the lead on delivering sustainability excellence for your institution

A final quote: ‘Start by doing what is necessary; then do what is possible; suddenly you are doing the impossible.’ St. Francis of Assisi.

Ian JarveyUniversity of Manchesterwww.procurement.manchester.ac.uk@UOMProcurement

Jimmy BranniganNETpositive Futureswww.netpositivefutures.co.uk@NPFutures