Towards Tesco: Taking the Cost Out of Public Sector Procurement

Towards Tesco: Taking the Cost Out of Public Sector Procurement

Colin Cram Marc1 Ltd [email protected] Tel: 01457 868107 Mob: 075251 49611 www.Marc1ltd.com 220 Billion pa 3,500 per Adult and Child pa

One Third of Total UK Public Spending One Sixth of UK Gross Domestic Product (GDP) 0.75% of Global GDP Size makes it Critical to Delivery of Public Services Effective Management is Essential to Reduce Public Spending Deficit and Deliver Government Procurement Policies EDUCATION PROCUREMENT - 30+bn Alone would put UK in top 30% of national GDPs 65% Non-Central Government

50% Common Categories, Goods, Services Professional Services 35bn Construction 21bn ICT 10bn Facilities Management 10bn Energy 4bn Reprographics 3bn Travel 3bn Fleet 3bn Food 2bn

Some Major Central Government Department Organisations Some Large Specialist Organisations NHS Outsourcing Buying Agencies: 40+ OGC and Category Teams Several Thousand Small to Medium Procurement Units 40,000+ Procurement Points BUT Increasing Collaboration/Joint Procurement

Indiscipline Different Procedures/Contract Ts and Cs Complexity e.g. Tender Procedures Multiplicity of Tenders Multiplicity of Duplicate Contracts and Contract Managers Inconsistency Specifications Varied Specifications/Reinventing the Wheel Indiscipline/Disaggregation

Duplication Inconsistency of Expertise, Processes and Procedures AND cannot use industry best practice supply management Furniture 30% FM/Outsourcing/Major Contracts Up to 35% Laboratory Consumables Up to 90%

IT 5 80% Construction 5 25% Excellent Construction Management 5 15% Social Care 10% Legal Services 10% Good Contracts Management 5 35%

C M Cram Right Procurement Structures/Joint Procurement Common and Complete Databases Common Information/IT Systems Common Procedures Common Specifications Commodity, Markets, Procurement Expertise Specialist Management Best Practice Procurement Techniques

PUBLIC SECTOR PROCUREMENT IN 5 YEARS TIME? Central/ Major Departments/ Buying Solutions Industry Specific Major National Contracts/Suppliers

* * Common Categories * *

Relationship Management * * Market Management * *

Industry Specific PPIs/Major Project Support * Regional P Local/Med/ Hubs/ Small Medium Departments

Depts * * * * Regional/Large Local

Contracts/Suppliers * Small Local Contracts * * Discipline/Implementation/

Compliance * * C M Cram PUBLIC SECTOR PROCUREMENT: THE FUTURE? INTEGRATION COLLABORATION

INDEPENDENCE C M Cram REPOSITIONING PROCUREMENT REGENERATION MARKET ENGAGEMENT CONSTRUCTION

ROADS MAINTENANCE SCHOOLS TRAINING LOCAL X PROCUREMENT LABOUR WHERE IS MARKET ENGAGEMENT MOST EFFECTIVE?

MAINTENANCE C M Cram Thankyou Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611 [email protected]

www.marc1ltd.com C M Cram

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