National eProcurement Project

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National e-Procurement Project

• NePP local e-gov Experience Sharing Workshops
  June/July 2005

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Introduction to NePP

• 1 of the 22 National Projects sponsored by the
  ODPM
• Launched in October 2002
• Run by Local Authorities for Local Authorities
• NePPs focussed outputs
• Implementation Plan
• Best Practice Guidance
• Interactive Tools
• Experience Sharing
• Case Studies
• Practical Workshops
• Consultancy Support

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NePP Outputs 2004/2005

• New entry-level guidance notes for implementing
  e-procurement 1 -9 How to Guides
• Support for Local Authorities
• 120 English LA approached
• Onsite e-Procurement Consultancy Support
• Events Programme
• Experience Sharing Workshops Nov/Dec 04,
  Feb/March 05, EXPO, Third Party Events

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How to Guidance

• Overarching Guide to e-Procurement
• What are Purchase Cards
• What are e-Auctions and how to get started
• What is e-Tendering
• What is an e-Marketplace and how to get started
• How to create a Business Case for e-Procurement
• What is Spend Analysisand how to get started
• Guide for selling to Councils
• Guide for Suppliers
• Available at
• www.idea-knowledge.gov.uk also available
  through
• www.nepp.org.uk

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Implementation Plan
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What is procurement / e-procurement
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What is procurement / e-procurement
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Take advantage of the NePP Outputs

• Website for all best practice guidance, case
  studies, interactive tools
• www.nepp.org.uk
• NePP as dating agency
• Experience Sharing Workshops
• Contact us for any general enquiries
• projectoffice_at_nepp.org.uk
• National Projects Information line 0870 777 0011

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Quantifying the benefits some highlights

• The estimated benefits for local government
  overall are

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Quantifying the benefits what can I save?

• Est. benefits individual authority are

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Quantifying the benefits
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Quantifying the benefits
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Quantifying the benefits - approach

• Analysis of non-pay expenditure Identify
• corporate contracts (including outsourced service
  delivery),
• the number of suppliers and
• number and value bands of invoices.
• Determine spend categories - usually CIPFA
  categories although others may need to be added.
• Analyse non-pay expenditure obtained from Step 1
  into the spend categories agreed in Step 2.

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Quantifying the benefits - approach

• The first part of the model can now be completed
  spend totals by spend category.
• Potential benefits are assessed by
• percentage of addressable spend by category
• level of compliance by reference to the extent to
  which corporate contracts are in place,
• the level of maverick spend and the number of
  suppliers by spend categories
• agreeing the phasing of strategic procurement
• applying benchmark savings percentages to
  addressable spend by category

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Quantifying the benefits - approach

• Process savings
• Analyse the purchase-to-pay process in selected
  services and in Finance to provide substantiation
  of the potential process savings.
• The detailed tasks are
• map the purchase-to-pay process in the services
  and in Finance, to
• identify how the process is undertaken,
  including the use of
• technology
• identify typical timings for each process step
• identify the resources involved in each process
  step and their cost
• calculate unit costs for order and invoice
  processing
• contrast the current situation with best
  practices
• determine the potential process savings in the
  selected services
• extrapolate the potential savings across the
  Council.

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Challenges
e-Procurement life cycle and change management
challenges
Gaining initial interest
Commit resources
Making the case
Deliver the benefits
Management and user buy-in Selling the benefits
Leadership and ownership of the project
Management and user buy-in Selling the
benefits
Organisation design Compliance with corporate
contracts and processes
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e-Procurement the Gershon Review

• Gershons Efficiency Review targeted government
  with achieving savings of over 20bn during the
  next three years.
• Local government is targeted with achieving
  savings of 6.45bn, half of which must be cashable

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More Information

• Download the all of the benefits documents from
• www.nepp.org.uk
• www.localegovnp.org.uk/benefits

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Regional Working

• NePP is working alongside
• Regional Centres of Excellence
• e-Government Partnerships
• Objectives
• Sharing best practice
• Efficient use of resources in attempt to stop
  reinventing the wheel
• Supporting Promoting Regional Initiatives
• Identifying and helping Local Authorities that
  need it most

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• www.nepp.org.ukProjectoffice_at_nepp.org.uk