NePP Regional Workshop Monday 3 rd November 2003 – Latton Bush Centre - Harlow Thurrock Council’s Local Business Initiative 9 years of Strategic Supplier

NePP NePP Regional WorkshopRegional Workshop

Monday 3Monday 3rdrd November 2003 – Latton Bush Centre - Harlow November 2003 – Latton Bush Centre - Harlow

Thurrock Council’s Thurrock Council’s Local Business InitiativeLocal Business Initiative9 years of Strategic Supplier Relations9 years of Strategic Supplier Relations

Margaret Gozna MCIPSMargaret Gozna MCIPS

Principal Procurement OfficerPrincipal Procurement Officer

Copyright of Copyright of

Thurrock Thurrock CouncilCouncil

Thurrock BusinessThurrock Business InitiativeInitiativeWhat is it?What is it?

Partnership between:Partnership between:Thurrock CouncilThurrock Council

Thurrock Local Enterprise Agency Thurrock Local Enterprise Agency LimitedLimited

Thurrock District Association of Thurrock District Association of IndustriesIndustries

Thurrock Chamber of CommerceThurrock Chamber of Commerce

Objective:-Objective:-Maximise the amount of work awarded to local business, both directly & indirectly, within the

bounds of legality



Best PracticeBest Practice

Thurrock Council’sThurrock Council’s Local Business Initiative Local Business Initiative (LBI)(LBI)

ISO 14001 ProcurementISO 14001 Procurement – one of the – one of the ‘few’‘few’

National Procurement StrategyNational Procurement Strategy (Page 49)(Page 49)

I&DeA Sustainability in Local I&DeA Sustainability in Local Government Government Procurement Procurement (Page (Page 67) 67)



Thurrock Business Thurrock Business InitiativeInitiativeObjectives of PolicyObjectives of Policy

Monitoring amount of supplies, goods & services awarded locallyMonitoring amount of supplies, goods & services awarded locally

Online business introduction form - select list and other Online business introduction form - select list and other registers recognising local businessregisters recognising local business

Encouraging contractors to enter subcontracts using Encouraging contractors to enter subcontracts using standard T&C’sstandard T&C’s

Changing standard documents – simpler – tenders Changing standard documents – simpler – tenders available on-lineavailable on-line

Organising training & seminars for local businessOrganising training & seminars for local business

11

22

33

44

55

66

Changing payments’ conditions – SME protection – direct Changing payments’ conditions – SME protection – direct paymentspayments



Thurrock Business Thurrock Business InitiativeInitiativeAchievementsAchievementsThurrock Cumulative Total Percentage

PaymenPaymentsts

£m £m £m %

1996/1991996/19977

3.1 3.1 34 9

1997/1991997/19988

3.5 6.6 34 10

1998/1991998/19999

5.5 12.1 47 12

1999/2001999/20000

10.12 22.13 62 16

2000/2002000/20011

12.50 34.63 77 17

2001/2002001/20022

17.76 52.39 89 20

2002/2002002/20033

23.97 76.36 101 24

2003/2002003/20044

26*26* 102.36102.36 104104 2525

* Projected to 31/3/04* Projected to 31/3/04



National Procurement National Procurement Strategy Strategy && Local Business Local Business InitiativeInitiative Collaborative ArrangementsCollaborative Arrangements

E-procurementE-procurementInternal & external projects (no decision Internal & external projects (no decision re:- ‘Marketplace’ etc. yet – keeping open re:- ‘Marketplace’ etc. yet – keeping open mind)mind)

Sustainable procurementSustainable procurementISO 14001ISO 14001

REGASS©REGASS©



Thames Gateway and Thames Gateway and South EssexSouth Essex

U D CTh u rrock

C ou n c ilsin reg ion

S u p p ort S erviceP artn e rsh ip s

Th am es G atew ayS ou th E ssex

Investment in THURROCKInvestment in THURROCK



TLBI TLBI &&Local Government Act Local Government Act 20002000

Clause 2Clause 2

provides local authorities with power provides local authorities with power to take any steps which they consider to take any steps which they consider are likely to promote or improve the are likely to promote or improve the economic, social or environmental economic, social or environmental well-being of their local communitywell-being of their local community

Procurement StrategyProcurement StrategyEquality, Regeneration & Equality, Regeneration & SustainabilitySustainability



Thurrock Trade Thurrock Trade SchoolSchoolPractical StepsPractical Steps

26 youngsters aged 1526 youngsters aged 15 Teenagers focus on a future careerTeenagers focus on a future career Carpentry, plumbing, electrical, Carpentry, plumbing, electrical,

bricklaying, plastering, decoratingbricklaying, plastering, decorating Saturday morningsSaturday mornings Collaboration - Local Business Collaboration - Local Business

helps facilitatehelps facilitate



Sustainability in Sustainability in times of Rapid times of Rapid GrowthGrowth

EconomicEconomic SocialSocial EnvironmentEnvironment

Demonstrating we care



Phase 2 Phase 2 REGASS© project REGASS© project Future Plans – Beyond the LBIFuture Plans – Beyond the LBI

Developing a regionally focused ‘Blue-Print’ Developing a regionally focused ‘Blue-Print’ for supplier & community sustainabilityfor supplier & community sustainability

LOCAL AUTHORITY PROCUREMENTLOCAL AUTHORITY PROCUREMENT

CATALYST FOR TRUE ECONOMIC DEVELOPMENTCATALYST FOR TRUE ECONOMIC DEVELOPMENT

Thames Gateway South Essex region as Thames Gateway South Essex region as pilot focuspilot focus

Nurturing local marketsNurturing local markets



Thank you for your TimeThank you for your TimeAny questions?Any questions?

Please visit our websitePlease visit our website

www.thurrock.gov.uk/businesswww.thurrock.gov.uk/business

‘e’-mail : - [email protected]



CHANGES TO CHANGES TO SELECT LISTS & SELECT LISTS & TENDERSTENDERS Less ‘one-off’ contractsLess ‘one-off’ contracts

Larger value higher risk partnershipsLarger value higher risk partnerships Need to retain local recognitionNeed to retain local recognition Specifications to reflect/promote local Specifications to reflect/promote local

labour labour More proactive preparation of tendersMore proactive preparation of tenders Keep the simple stuff simple – don’t Keep the simple stuff simple – don’t

introduce restrictive arrangementsintroduce restrictive arrangements Commercially focused & better aligned Commercially focused & better aligned

to private sectorto private sector



Local SME Capacity Local SME Capacity BuildingBuilding

PLATINUMPLATINUM

GOLDGOLD

SILVERSILVER

BRONZEBRONZE

Need to create a Need to create a

common common minimumminimum standard standard of accreditation of accreditation

4 Levels Reflecting Overall Supplier Capacity & 4 Levels Reflecting Overall Supplier Capacity & Sensible Risk Sensible Risk vsvs Value balance Value balance



Case Study 1Case Study 1Complex Supply Chain & Packaging Complex Supply Chain & Packaging of Worksof Works

Chadwell High Rise - £1.5m project - local contractorChadwell High Rise - £1.5m project - local contractorInputsInputs

The willThe will Support (not always easy to find the time)Support (not always easy to find the time) Partnering and training approachPartnering and training approach Make sure they are paid on timeMake sure they are paid on time The local business initiative Council PolicyThe local business initiative Council Policy Co-operation & support between Council DepartmentsCo-operation & support between Council Departments Risk, identified, managed and takenRisk, identified, managed and taken

OutputsOutputs Successful projectSuccessful project Saving of money £250,000 and time completed 8 weeks ahead Saving of money £250,000 and time completed 8 weeks ahead

of scheduleof schedule Profit for local businessProfit for local business



The ‘e’ Procurement The ‘e’ Procurement S.W.O.TS.W.O.TStrengthsStrengths

Pockets of Good PracticePockets of Good Practice

Internal & external initiativesInternal & external initiatives

Public sector expertisePublic sector expertise

Awareness of legislationAwareness of legislation

Location, Location, LocationLocation, Location, Location

WeaknessesWeaknessesTendency to be ‘precious’Tendency to be ‘precious’

Too introspective - only seeing Too introspective - only seeing boundary of local authorityboundary of local authority

Need to challenge 3Need to challenge 3rdrd party party solutions Council Select Lists – solutions Council Select Lists – L.A.s not doing Suppliers a favour – L.A.s not doing Suppliers a favour – we need them!!!we need them!!!

OpportunitiesOpportunitiesIdentify synergies - business Identify synergies - business & LAs – greater collaboration& LAs – greater collaboration

More outward facing More outward facing

Maximise Investment & Maximise Investment & regenerationregeneration

Keep an open mind ………Keep an open mind ………

more than one solutionmore than one solution

ThreatsThreatsRisk - internal focus -L.A.s losing Risk - internal focus -L.A.s losing sight of primary objectivesight of primary objective

Poorly thought through/imposed Poorly thought through/imposed systems Suppliers turn away from systems Suppliers turn away from public sector contractspublic sector contracts

Introducing systems that are too Introducing systems that are too complicated or expensivecomplicated or expensive

Documents

NePP Regional Workshop Monday 3 rd November 2003 – Latton Bush Centre - Harlow Thurrock Council’s Local Business Initiative 9 years of Strategic Supplier