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

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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