Key Supplier Forum Andrew Smith Chief Executive 24 July 2015

1. Key Supplier Forum Andrew Smith Chief Executive 24 July 2015

2. Why are we here • To build stronger relationships with you as our key suppliers • To share our priorities, challenges and direction of travel • For you to help us achieve our savings, efficiencies and innovation (‘doing things differently’)

3. Agenda • Direction of Hampshire County Council – Andrew Smith, Chief Executive • Transformation Programme and Impact on Supply Chains – Michael Lee • Facilitated discussion topics in breakout groups • Feedback and Next Steps – Michael Lee • Questions and Close – Andrew Smith • Coffee and networking

4. National Context: Public Sector Spending

5. A 10-year journey • Starting early (2008) • Cost reduction • Improvement through Transformation • Shared services and partnerships • Council of the future

6. What we have achieved

7. Council of the Future Customer Insight Service Solutions Extended Organisational Capabilities Leadership Capabilities Digital Tools and Capabilities Managed External Spend Agile Workforce Productivity and Performance Management Traded Services Centres of Excellence for the Public Sector

8. Transformation Programme and Impact on Supply Chains Michael Lee

9. Hampshire County Council Spend by Category

10. Shared Services and Partnerships £14m £50m Extended Organisation 533 Hampshire Schools 285 Oxfordshire Schools

11. Departmental savings and cross-cutting themes

12. Scale of the external market savings challenge Service Area Saving (£) Adults Services £43m Children’s Services £21m ~25% ETE £15m CCBS £5m ~66% Corporate Services £6m EXTERNAL SPEND AND SUPPLY CHAIN INCOME GENERATION & OTHER SAVINGS INTERNAL TRANSFORMATION

13. Scale of spend with suppliers in the room… £630M HCC External Spend (Revenue) £300M £150M + HCC Capital Spend With suppliers in the room today..!

14. Improving our commercial approach Key Procurement and Commercial themes Hampshire will be exploring as part of the Transformation to 2017 and beyond Pre-contract activity Post-contract activity Define business need Develop business case Set procurement strategy Procure and contract Implement Contract Operate and Manage Review and Exit HCC Market Management Themes Category management (supported by Gateway Reviews) & Supplier Segmentation Market engagement / shaping / innovation/ management/ development Demand Management Make versus Buy Analysis Challenging & Changing Specifications Negotiation(s) Contract Management & SRM Procurement & Commercial Operating Model

15. Achieving our cost reduction targets We can only go so far in identifying where savings can be made - we need the support and knowledge of our key suppliers to identify further savings opportunities. Objective is to: • Become a better client: • Departmental dialogue is already in progress • Forum to provide organisational wide communication • Welcome ideas and innovation from our suppliers to deliver saving opportunities

16. Facilitated session Becoming a better client: • What we do well as a client • What we could do differently to achieve cost reductions • Your ideas on how we manage demand better 1 key theme to be fed back by each table

17. Part 1 Facilitated session ‘Capture your thoughts’ Your ideas on how we can improve our demand management, and reduce our requirements Attendee Name: Company Name: HCC Facilitator Name: Follow-up Contact Details: Q1 What we do well as a client What we could do differently to achieve cost reductions Q2 • ? Q3

18. Questions and Answers with the Chief Executive Andrew Smith

19. Next Steps and Close • Post event feedback – please return your ideas by Friday 14th August • 1-2-1 meetings will be held in September 2015 • Further engagement at a local level • Follow up event in December 2015 • The Key Supplier Forum will become a bi-annual event • This presentation will be published at hants.gov.uk