towards tesco: taking the cost out of public sector

Report
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
• £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 of Expertise/Capability/Processes/Procedures
•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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