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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: - PowerPoint PPT Presentation
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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’
B
Strategy & Key Targeted OutcomesMinisterial Buy In and Commitment
Increase in spend through GPS
Higher % of CS staff trained
Deployment of enabling technology
Reduction in sourcing time & cost
More contracts & spend with SMEs
Sustainable savings through CSR
Better perception of Procurement!
Deficit Reduction + UK Growth = Burning Platform
Progress to Date
• Full Ministerial commitment & support
• £3.75bn savings achieved in the first year
• £1.4bn on CCL : £800m 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!
Savings & Value from
Every £ Spent
More Business
with SMEs
This slide should not be shown it is a marker for the video clip to
be played, once the video has finished you should immediately
move onto slide 9.
Just Some of the SME Successes
UNCLASSIFIED
Whitehall's £1.1bn 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 £2.6bn contract to Yorkshire-based Redfern Travel.
Friday 18th September
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>>>
e.g. For Government ICT
GovernmentCIO
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 re-use, 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