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Mark Glaister
Procurement Manager
Surrey County Council
About Surrey
Key Statistics
The Councils gross budget for 2004 was £1.26 billion of which £737.6 million is spent on goods, services and works.
A population of 1.1 million supported by the County Council, 11 Districts and 14 Borough Councils
Surrey Children’s Service currently provides support to over 3,000 children and young people from an annual budget for goods and services of £34 million
The Council is committed to saving £2m during 2004 / 5, £3m during 2005 / 6 and £4m during 2006 / 7. In addition, the Council has recently launched a Policy and Productivity review with the aim of saving an additional £5m per year over a 3 year period. Total savings target of £24 million over the next 3 years.
The Council recognise that more effective procurement will be key if these targets are to be achieved with e-procurement very high on the agenda.
The Temporary Staffing Requirement - Children’s Services
The Requirement
Children’s Services requires temporary staffing agencies to supply the
following categories of worker:
Social Workers (qualified and un-qualified)
Residential Social Workers for Waking Nights & Children with Disabilities
Admin and Secretarial
HR
Procurement
How was this requirement historically being met?
£2 million spent per annum with 52 different local agencies
Problems In Meeting This Requirement
Lack of control over spend - different charge rates/pay rates across agencies
Lack of visibility over spend - no process for tracking and monitoring spend
Ordering processes inconsistent across teams - temp quality inconsistent
No central records of temps held by the Council - high risk exposure
No process for measuring the performance of agencies
Considerable management time spent on processing timesheets and invoices
5,000 temporary staffing invoices processed per annum
8,000 temporary staffing time sheets processed per annum
The Objective
To achieve best value temporary staff supply
To reduce the current level of temporary labour expenditure within Children’s Services by 10% - 15% in direct and in-direct savings
To reduce the amount of management time currently allocated to staff ordering, invoicing, time sheeting and management reporting and allow managers to concentrate on their core activity.
To achieve a consistent application of policy governing temporary staff usage within Children’s Services
To manage risk more effectively
To identify where, when and why temporary staff being used to inform workforce planning
The Objective
The Options
The Options
Managing Supply
Option 1 - Establish a preferred list of agencies (PSL)
Option 2 – Establish an in-house supply agency
Option 3 - Appoint a master vendor
Option 4 - Appoint a vendor neutral managing agent
Managing Delivery
Option 1 - Purchase an e-procurement system
Option 2 - Purchase an outsourced e-procurement system
How should we manage supply?
How should we manage delivery?
The Decision
The Decision
Managing Supply
Option 4 - Appoint a vendor neutral managing agent
Managing Delivery
Option 2 - Purchase an outsourced e-procurement system
Vendor neutrality ensures maximum competition for all available staffing orders.
Service quality drives movement between tiersMultiple portals into a single ordering
point
Delivery driven by a web-enabled exchange and exceptions managed by
experts in Comensura’s service centre
Social Work Vendors
Carer Vendors
Site 1Site 2
Site 1Site 3
Site 1
comensura.net automates:
Ordering
Candidate submission
Invoicing
Time Sheeting
Real time spend information
Tier 3
Tier 2
Tier 1
Tier 3
Tier 2
Tier 1
Location and skill-set specific tiers
Programme Overview
The Decision – benefits to Surrey
“To support business improvement through cost effective and efficient purchasing of goods and services through corporate implementation of e-procurement. Working with local suppliers to equip them to take advantage of e-procurement activities”
ODPM 2004
Vendor Neutrality Encourages local suppliers to work with the Council in line with the Governments Priority Service Targets Promotes a consistent temporary staffing workforce A more diverse and higher quality temporary workforce Best value temporary staffing supply. Vendor Neutrality promotes continuous improvement amongst the agency supply chain.
E-ProcurementComplete visibility and control over spend – authorisation levels set for ordering, invoicing and time sheeting Automation of costly back office processes – invoicing, time-sheeting etc Standardisation of job specifications allowing for greater skills matching of candidates by agencies All costs associated with technology maintenance, training, and upgrades borne by outsourced provider Bespoke market place - Integration with Councils SAP System
The Decision – benefits to suppliers
Vendor Neutrality
Orders are contested on the basis of quality and price not size or reputation
Equal opportunity to increase market share across the Council
E-Procurement
To be competitive, staffing suppliers must add value to their temporary staff and concentrate on
attraction, interviewing, matching, developing and counselling
Engage with authority easier and quicker – all that is required to interact is access to the internet
Reduce their staffing and account management costs dramatically, through instant
access to key recruitment decision makers across the Council
Respond to temporary/permanent vacancies quicker due to instant notification supported
with detailed job and skill requirements
Obtain feedback on performance – promotes continuous quality improvement
Reduced cost of transaction with client – automated time sheeting and invoicing
Q&A
Additional Information
For additional information on this programme or indeed the other programmes being delivered by Comensura across Local Government please contact:
Andy Weston
Sales & Marketing Manager
Comensura
Tel: 0781 089 8210
Email: [email protected]
Web: www.comensura.co.uk
