Colin Cram

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SUSTAINABLE PROCUREMENTIN THE NORTH WEST

• Colin Cram
• Regional Director
• North West Centre of Excellence

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CHALLENGES AND OPPORTUNITIES

• REDUCTION IN PROCUREMENT COSTS
• - 9 IN 3 YEARS?
• BOOSTING LOCAL ECONOMY/EMPLOYMENT
• SUPORTING/WORKING WITH THIRD SECTOR
• SUSTAINABILITY
• CLIMATE CHANGE

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WHAT IS THE UK SUSTAINABILITY POLICY?

• SECURING THE FUTURE
• SUSTAINABLE CONSUMPTION AND PRODUCTION
• CONFRONTING CLIMATE CHANGE
• PROTECTING NATURAL RESOURCES
• ENHANCING THE ENVIRONMENT

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SUSTAINABLE CONSUMPTION AND PRODUCTION

• UK TO BE THE EU LEADER ON SUSTAINBLE PROCUREMENT
  BY 2009
• STRONGER PARTNERSHIPS WITH KEY BUSINESS SECTORS
• - FOOD, TOURISM, CONSTRUCTION
• REDUCING WASTE AT SOURCE

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UK GOVERNMENT PRESSURES TO DELIVER SUSTAINABLE
PROCUREMENT

• TAXATION E.G. LANDFILL
• LEGISLATION
• - POLLUTION
• - TOXIDITY
• - SAFETY
• NATURAL RESOURCES E.G. TROPICAL HARDWOODS
• - USE OF LOCAL SUPPLIERS
• - QUALITY OF FOOD
• TRADE
• SECURITY
• - TERRORISM
• - LONG TERM SUPPLY OF RESOURCES
• CORPORATE IMAGE

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PRESSURES AGAINST SUSTAINABLE PROCUREMENT

• INTERNATIONAL
• - EU PROCUREMENT DIRECTIVES
• - WORLD COMPETITION
• GOVERNMENTS
• - BUDGETS
• - FAVOURING NATIONAL SUPPLIERS
• COMMERCIAL
• - BUSINESS SURVIVAL
• - COMPETITIVENESS
• - INTERNAL TARGETS

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SO WHAT DOES PROCUREMENT LOOK LIKE IN THE NORTH
WEST?

• 6.9 BN PA
• 900 PER ADULT AND CHILD
• 1,800 PER PERSON EMPLOYED
• 45 OF LOCAL AUTHORITIES COSTS
• BY COMPARISON
• DIAGEO 2.5BN
• LOREAL 3BN
• ASSOCIATED BRITISH FOODS 3BN
• PHILIPS ELECTRONICS 12BN

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HOW DO WE SPEND OUR MONEY?

• CONSTRUCTION 28
• HEALTH AND SOCIAL CARE 18
• COMMODITIES GOODS AND SERVICES 18
• WASTE 7
• TRANSPORT (EXCLUDING PTES) 4
• AGENCY STAFF, CONSULTANCY 3
• STATIONERY AND CONSUMABLES 0.1

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HOW WELL HAVE WE MANAGED OUR MONEY?

• 1 OF SUPPLIERS ACCOUNT FOR 60 OF SPEND
• 0.1 OF SUPPLIERS ACCOUNT FOR 30 OF SPEND
• PURCHASE TRANSACTIONS 3 MILLION
• 40 OF TRANSACTIONS BELOW 100
• 12.5 OF TRANSACTIONS BELOW 11

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HOW WELL HAVE WE MANAGED OUR MONEY?

• FULL TIME DESIGNATED PROCUREMENT POSITIONS 200
  
• FULL TIME EQUIVALENTS ENGAGED IN PROCUREMENT
  1000?
• COMMODITY EXPERTISE AVAILABLE? VARIED
• MARKET EXPERTISE AVAILALBLE? VARIED
• TECHNICAL PROCUREMENT EXPERTISE AVAILABLE? VARIED

HUGE RESOURCE, BUT LACKING STRATEGIC MANAGMENT
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GLOBAL COMPANY SIZED SPEND MANAGED LIKE CORNER
SHOPS? BUT LOCAL GOVERNMENT ALSO OPERATES IN
A GLOBAL MARKET IS OUR PROCUREMENT STRUCTURED
FOR A BY-GONE ERA?
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HOW DO WE TURN SUSTAINABLE PROCUREMENT INTO A
REALITY?
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HOW DO WE TURN SUSTAINABLE PROCUREMENT INTO A
REALITY?
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HOW DO WE TURN SUSTAINABLE PROCUREMENT INTO A
REALITY?

• HIGH LEVEL COLLABORATIVE PLANNING AND
• EXECUTION
• AGGREGATION TO ENCOURAGE INVESTMENT IN GREEN
  TECHNOLOGIES
• DEVELOPMENT OF RENEWABLE RESOURCES
• DEVELOPMENT OF NEW PRODUCTS
• PROCUREMENT OF GREEN PRODUCTS

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• COMMON SPECIFICATIONS
• DIALOGUE WITH INDUSTRY
• WHOLE LIFE COSTINGS
• MULTIPLE OBJECTIVE STRATEGIES TO
• ENCOURAGE RE-GENERATION
• WORKING WITH THE SUPPLY CHAIN

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UNDERPINNED BY RIGHTPROCUREMENT STUCTURES
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THE NORTH WEST WASTE LANDSCAPE

• 24 MILLION TONNES PA
• - 10M TPA INDUSTRY AND COMMERCE
• - 10M TPA CONSTRUCTION AND DEMOLITION
• - 4M TPA HOUSEHOLDS
• NORTH WEST RECYCLING 24
• NATIONAL RECYCLING 31
• MAJOR WASTE DISPOSAL SCHEMES 9BN
• COLLECTION AND SORTINGS 100M PA

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MAJOR PROJECTS UPDATE

• GMWDA - 3BN OVER 25 YEARS
• - 300M OF CAPITAL INVESTMENT
• - CREATE REFUSE DERIVED FUEL
• - CLOSURE EASTER 2008
• MERSEYSIDE - POTENTIALLY MECHANICAL
• BIOLOGICAL TREATMENT
• - REFUSE DERIVED FUEL
• - CLOSURE 2009

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LANCASHIRE - 25 YEAR CONTRACT SIGNED
1BN - ANAEROBIC DIGESTION PLANT -
MATERIALS RECOVERY FACILITYCUMBRIA -
DESCOPING TO ACHIEVE SAVINGSCHESHIRE -
COMPETITIVE DIALOGUE
TARGET - WASTE TO LANDFILL
FROM 74 TO 17 -
RECYCLING UP TO 54 BY 2020
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TACTICAL STEPS?

• RECYCLING
• PLASTICS
• REFUSE DERIVED FUEL
• ACTIONS TO REDUCE WASTE
• - CONSTRUCTION
• - DOMESTIC
• BETTER ASSET MANAGEMENT
• COLLECT INVENTORY OF GOOD IDEAS?

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Thank you

• Colin Cram
• Regional Director
• North West Centre of Excellence
• colin.cram_at_tameside.gov.uk
• Telephone [phone]
• www.nwce.gov.uk
• rc.cram_at_btinternet.com