Making you think

1
Making you think

• Darren Bone, FCIPS

What already exists?
2
Current Landscape
Joint Committee Consortia
NE
SER WMS WNWPO
NEPO YPO ESPO
Local Authority Stores
YH
Joint Committee Consortia Stores
EM
Regional Buying Consortia Stores
NW
Regional Buying Consortia
EE
LA Stores trading beyond their boundaries
Local Authority Purch Partnership
North Eastern Purchasing Organisation Yorkshire
Purchasing Organisation Eastern Shires Purchasing
Organisation Supplies West Mercia Supplies Wirral
North Wales Purchasing Organisation
3rd Party Suppliers Warehouses
Derby District Purchasing Org
Privatised Local Authority Stores
Black Country Purch Consortium
WM
NHS Logistics Stores
MOD DLO Warehouses
Central Buying Consortium
SE
London Contracts Supplies Grp
London
SW
Kent Buying Consortium
3
Compact car rental prices ()(e.g. Peugeot 307,
Ford Focus, Vauxhall Astra)

• Variation may be attributable to differences in
  car specification and pricing structure
  like-for-like comparison is difficult

4
Benchmarking prices reveals choice for the buyer
- cost to the taxpayer

• 17 PC Monitor Prices ()

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5
Collaboration




Price Comparison




Unit cost



























Time















Organisation A Organisation B

6
9.1bn Procurement Efficiencies by 2008

• The Procurement Workstream supports the wider
  public sector in achieving collaboration by
• Providing procurement leadership
• Fostering engagements
• Creating sustainable improvements
• Providing better solutions

7
Summary SSF initiatives
Key Lead Department Collaboration yet to be
confirmed Collaborating with committed
volumes No category specific return
received Collaborating but yet to commit
volumes N/A
8
Category teams providecommodity support

• Category teams are focusing on

Temporary staff
Fleet
Energy
Office Supplies
IT Hardware
GPC
9
Procurement toolkitsCosting model - example of
fleet profile
Demo of Costing Model
10
Procurement toolkits

• www.lcpe.gov.uk/latestnews/Agency_Staff_News.asp

11
Energy Markets and Volatility

12
Procurement toolkits great deals
44 reduction
39 reduction
per unit
eAuctionprice
Pre-auction price
Previousprice
Previous price
GreatDeals
GreatDeals
eAuctionprice
Laptop
Desktop Screen Bundle
13
Procurement toolkits
14
Collaboration





Valueaddedactivity






















3
4
1
2


Levels of Collaboration
15
Making you think
C
E
O
T
L
A
R
L
O
A
B
16
What success might look like

• Collaboration is the norm
• Data sharing happens easily
• Trust and confidence are developed and maintained
• Minimal price variance
• Suppliers have to look elsewhere for exceptional
  profits
• This is a long, complex journey, but it has
  started with Cabinet strongly supporting this
  agenda stating
• Make collaboration the first step
• Bad practice is not an option

17
Making you think

• Darren Bone, FCIPS

Connection, not collection that is the
essence Tom Stewart
A single conversation across a table with a
wise man is worth a months study of books
Confucius
People only know what they know when they need
to know it Dave Snowden