CORPORATE SERVICES

PROCUREMENT

SERVICES

Richard Price

•Strategy (reminder)

•Top Objectives•What have we done since September?•What are we working on?•Questions

Contents

Procurement Strategy

‘Maximise value, minimise risks and process costs

thereby

increasing the capacity with which the Universityschools and services can attain their objectives.’

Procurement Plan 2007/08(Top items)

Tasks

E-procurement (Parabilis)

Savings

Client Engagement

Optimise Supplier List

Why?

Ease, speed, efficiency

Support University investment plan

Understand client needs Improve the procurement process Manage demand

Concentrate on fewer suppliers Better service Better deals

What have we done so far?

Procurement Plan PROCUREMENT PLAN 2007/2008

v 3.205 November 2007

Actions Owner

Str

ateg

y O

bje

ctiv

e

ResultsDue Date

Link to Report

Progress:

- / = / +

1 FOUNDATIONS1.1 Set-up EXPENDITURE REPORT. Richard 8 Monthly easy-to-use expenditure report by supplier, school/service and

commodity.31-Oct-07

1.2 Introduce CONTRACT USER GUIDES (template). Publish (on intranet) an index and guides to all key contracts.

Mike 8 1. Agreed template for contract user guide in shared drive.2. Index of all contracts on Intranet.3. Guides to MJP contracts on Intranet.4. Monitor production of guides to the other contracts. Start

Oct 07

1. Template done.2. 3. Four new prepared.4.

1.3 Get a SHARED DRIVE or folder for procurement. John 8 Shared drive available by 30 Oct 2007. 30-Oct-07Drive

DONE

1.4 Set up STANDARD ELECTRONIC FILING system. Richard 8 Electronic filing system approved and on the shared drive by 15 Nov 07. 15-Nov-07DONE

1.5 Start monthly PROCUREMENT REPORT. John 6 Publish first report in early October 07 06-Oct-07 DONENov edition published

1.6 Publish PROCUREMENT PROCESS showing the responsibilities of Procurement and Users.

Kathy 2 Flowchart published on web-page. 30-Oct-07 Stages of process identified and emailed to team for comment 26/10

1.7 Introduce PROCUREMENT POLICIES & PROCEDURES that: a. Help our clients procure their requirements. b. Drive savings, drive efficiencies, manage supply chain risk and improve sustainability

John 1 and

2

1. Agree Priority list.2. Develop a template for procurement policies.3. Publish 2 policies on web-site each month from October 2007.

15-Oct-0730-Oct-0715-Nov-07 Ethics submitted.

Sustainability published.Purchasing Card drafted.

1.8 Contract Management: Work out CONTRACT ADOPTION process (with key clients), embed it and monitor progress.

Mike 4 1. Propose a (client-agreed) process to Procurement Team.2. Apply process to all contracts and monitor client satisfaction.3. Revise the published Procurement process guide (1.7).

MP passed draft to JM

2 SAVINGS (concentrate on higher value)2.1 EXAMINE EXPENDITURE. Mike 3 Report that identifies UNMANAGED EXPENDITURE, the greatest

POTENTIAL SAVINGS and recommends PROCUREMENT PRIORITIES for the savings plan for 07/08 and beyond.

Started.

2.2 Develop and execute CONTRACT PLAN for 07/08. Mike & John

3 and

5

1. 2007/08 savings > £533,000.2. Increase managed expenditure from 33% to 55%.3. Procurement to manage X% of High-Value expenditure.

31-Jul -0831-Aug-0831-Aug-08 Report

MP briefed 19/10/07.

2.3 Extend CONTRACT PLAN to 2010. TBC 3 and

5

1. 2008/09 savings > £533,000 +3% = £549,000.2. Increase managed expenditure from 55% to 75%.3. 2009/10 savings > £549,000 +3% = £565,500.4. Procurement to manage Y% of High-Value expenditure.

31-Jul-0931-Jul-1031-Jul-0931-Aug-07

Not due this year.

2.4 Report CONSORTIUM savings and benefits. Kathy? 2 1. Circulate current benefits.2. Update list as new benefits are realised.

Received documents emailed to team for comment 26/10

3 EFFICIENCIES (minimise transaction time)3.1 Continue SUPPLIER REDUCTION. Challenge 'duplicate' or

new suppliers.Richard

(then Proc Offr)

3 1. Develop report that counts the number of useable suppliers ('The Supplier List').2. Number of suppliers reduces from c.8000 to 6000.

15 Nov 07 31 Jul 08

RP working to issue monthly report from EAS

3.2 Work with Finance (Gill) to REDUCE MAVERICK BUYING. Kathy 8 1. Simple plan.2. Unmatched invoices reduces month by month.

Meeting arranged for 14/11

3.3 Ensure E-PROCUREMENT is successfully introduced: a. PILOTS are successful. b. Successive roll-out. c. E-invoicing.

Kathy,then P.O.

8 1. Parabilis buyers are happy with the system and regard it as an improvement over APTOS.2. Invoice-matching for converted schools and services increases to 90% by 30 Aug 08.3. Number of e-procurement transactions reaches: 50% of the historical invoice quantity within 2 months 80% of the historical invoice quantity within 4 months.4. Schools and services adoption conforms to programme. 5. 80% of all invoices in converted schools and services are e-invoices.6. Efficiency savings (30,000 x £44) = £1.32m (Strategy target)

►B-Plan has delayed pilot introductions.►KPIs discussed at Project Board.

3.4 Review the use of PURCHASING CARDS and determine strategy including handling of misuse.

Mike 8 1. Purchasing card policy published by 30 Oct 07.2. Implement policy.

Policy drafted.

3.5 Develop a practicable SUSTAINABLE PROCUREMENT PLAN.

Mike 2 Simple plan showing key actions (developed with Sustainability Manager).

Drafted

4 CUSTOMER SATISFACTION AND SUPPORT4.1 Identify CHAMPIONS or EXPERTS for each service, school

or commodityRichard 7 1. List of all schools and services, showing historical expenditure and

Procurement sponsor. 2. List of all buyers showing historical expenditure (by purchase order and invoice) and Procurement mentor.

awaiting 1.1

Not started

4.2 ENGAGE CLIENTS (Services, schools and services) MikeRichardKathyJohn

7 1. Engaged clients (client feedback).2. Visibility of school/service procurement plans (Demand management)3. Procurement satisfaction rating.

Formal allocation not started.

4.3 Procurement training for devolved buyers John 7 Training plan for devolved buyers. Not started

Recruiting

John Malloch

Richard Price Mike Pearce Sally Phillips(from 2nd Jan 08)

Kathy Hill

15 ‘How to Buy’ Guides

CONTRACT REFERENCE

UoE-2005-009-03

TITLE CONTRACT FOR TAXI SERVICES - CORNWALL

Contract Period 01 June 2005 – 28 February 2009

Contractor Abacus & Falmouth TaxisJubilee HouseJubilee RoadFalmouth, Cornwall, TR11 2BATel (01326) 212141 / 312181Fax: (01326) 212181e-mail: enquiries@falmouthtaxis.co.uk

Scope Taxi journeys from / to destinations in Cornwall on an as and when required basis.

Prices, Rates & Service

Schedule of sample journeys (Charges) and other information available at www.cupid.ac.uk. Please type Abacus into supplier search field

How do I use the contract?

oIdentify the journey required or contact the contractor to discuss.oCheck prices Prices, rates & service’ @ www.cupid.ac.uk oTelephone, fax or e-mail your order to the ‘addresses’ above.

Contract Queries Mike PearceContracts OfficerProcurement ServicesLafrowda House, St.German’s RoadExeter, EX4 6TLT 01392 263672F 01392 264664E Purchasing@exeter.ac.uk

OperationalQueries

Feedback To assist Procurement Services in providing the right service please complete the feedback form. These comments will help us to improve our service and those of our suppliers. We would also appreciate you telling us when we have done a good job. Purchasing@exeter.ac.uk

Management of Supplier List(Active P1 Ledger)

The Supplier List(Active Suppliers on the P1 Ledger)

10,972

18,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Date

No

. of

Su

pp

liers

No. Active Suppliers

TARGET 31 Jul 08'

Other Action Taken

1. Sustainable Procurement Policy (Issue 2) Reviewed by DVC To be presented to Sustainability Group

2. Change stationery contract Better service Better deal Now includes toner cartidges Less packaging

What are we developing?

1. E-procurement (Parabilis): Early January Biosciences Late January Hospitality Services February review of progress March/April/May Other schools and services

2. University Expenditure Report: By school or service By commodity By value

3. Procurement Process information for users4. Savings Plan for 2007/08

What are we developing?

5. Supplier List report6. Supplier rationalisation plan7. Sustainability Strategy (to support the Policy)8. Purchasing Card Policy (with Finance)9. Best Value approach to:

Network refresh, wireless and telephony Family Centre Leasing contract for Accommodation

PROCUREMENT SERVICES

QUESTIONS

Email: purchasing@exeter.ac.uk

Web: www.admin.ex.ac.uk/corporate/Procurement/index.shtml