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Involving Local Suppliers: Harrow Council activity 4 th February 2013

Involving Local Suppliers: Harrow Council activity 4 th February 2013. Drivers. Savings Quality of service delivery Best Value Public Services (Social Value) Act 2012 Equality Act 2010 Stakeholder pressure; local politicians and public. Policy Response.

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Involving Local Suppliers: Harrow Council activity 4 th February 2013

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  1. Involving Local Suppliers: Harrow Council activity 4th February 2013

  2. Drivers • Savings • Quality of service delivery • Best Value • Public Services (Social Value) Act 2012 • Equality Act 2010 • Stakeholder pressure; local politicians and public

  3. Policy Response Harrow Council Sustainable Procurement Policy Encouraging a diverse base of suppliers Fair employment practices Workforce welfare Targeted recruitment and training Community benefits Ethical sourcing Promoting greater environmental sustainability Best Value Continuous improvement with regard to; • Economy • Efficiency • Effectiveness Considering social, economic and environmental value = Social, Economic And Environmental improvements to Harrow Capitalises on learning of GLA, TfL London 2012, Crossrail etc Value for Money Optimum combination Of whole life costs, Assessed according to outputs (e.g. quality) & resources required to produce them (e.g. risk, price) Involves Cabinet, Councillors, Directors, Legal, Democratic Services Economic Dev’t, Corp Procure’t, Procurers, Commissioners Contract Managers

  4. What Harrow does: Demand Side

  5. What Harrow does: Supply Side

  6. What we do: Procurement Process

  7. BS 8903 - Sustainable Procurement

  8. Market research • Market testing • Market warming • Capacity building of potential suppliers • Consortia building • Via supplier engagement events, meetings, on-line forums • Face-to-face, electronically or snail mail

  9. To stimulate 1st tier participation; • Communicate the opportunity to local / SME businesses to that they can compete, if appropriate • Use procurement process and paperwork appropriate to risk of contract • Sense-check paperwork to minimise unnecessary bureaucratic burden on bidders • Provide constructive feedback

  10. To stimulate 2nd or 3rd tier opportunities • Include questions around supply chain management/ supplier diversity in higher value tenders; • How will they manage their supply chains to ensure that opportunities are made accessible to local/ SME businesses? • Engagement with local networks • “Meet the Buyer” events • Push requirements through their supply chains • Include relevant Performance Indicators (PIs) – with no associated targets

  11. Monitor • Report • Share good news • Encourage honesty about difficulties • Tackle issues openly and transparently

  12. Learn • Share • Look out for change • .... And adapt to it • Accept working with [some] uncertainty • Innovate • Enjoy!!!

  13. Internal Challenges and Responses

  14. “Policing” the Procurers SAP SRM Upgrade Requires use of contracts or catalogues If new contract award is requested, evidence must be provided of how local suppliers have been given opportunity to quote / tender All requests have to be approved by Corporate Procurement; no PO number or invoice payment otherwise Corporate Procurement reject requests where local suppliers haven’t been given opportunity to compete

  15. External Challenges and Responses

  16. Monitoring: 1st Tier supply chain • How many suppliers are competing for contracts? • How many local suppliers are competing for contracts? • …. And how many are winning contracts? • In what elements of the procurement process do local and smaller suppliers struggle/ fail in the process • … and are these unnecessarily high barriers that we can reduce without compromising quality / price in future processes?

  17. Monitoring: 2nd tier supply chain • Are large suppliers; • engaging with local suppliers or sub-contractors? • Delivering on supply chain management activity that they committed to in their tenders? • What is the £ value of spend with local suppliers/ sub-contractors • Are fair payment terms being used? • Where is the value in the supply chain?

  18. Challenges of Definitions / Targets • “SME” • = 99%+ of UK business community! • Micro firms are very different to medium firms and all firms differ from each other • “Local”? • What is local? Postcode of head office and/or an operational base and/or registered company address? Or employs local people? • Franchises? Local offices of national firms? • Different sector ‘clusters’ in different areas • Market stimulation v protectionism • Third Sector • Why “not for profit”? Need to create a surplus in order to have a future • Big / national v smaller/ local

  19. Thank-you & Questions Liz Holford, Sustainable Procurement Lead Liz.holford@harrow.gov.uk

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