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Procuring goods & services – are housing bodies doing it well?

Procuring goods & services – are housing bodies doing it well?. Steve Malone MD Procurement for Housing Scotland.

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Procuring goods & services – are housing bodies doing it well?

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  1. Procuring goods & services – are housing bodies doing it well? Steve Malone MD Procurement for Housing Scotland

  2. Recent research by Accenture identified that organisations with high performing procurement functions achieve procurement savings that are 30% higher than low performers yet cost about half as much to run. They identified that a relationship exists between procurement ‘excellence’ and superior financial performance. The disappointment though is that most organisations fall short of ‘excellence’ for strategic and process reasons.

  3. The Procurement Challenge People Technology Process

  4. An Evolutionary Approach in Housing Aggregation Regulation Social Value Insight Value Creators Social Housing Industry Leaders

  5. Why is this?

  6. What Are Your Options?

  7. What should you be looking for?

  8. Best in Class Procurement Before After • Strategy and Policy • Design and Development • Value Management Strategic Services Strategic Services Retained Procurement Management • Tendering • Supplier Management • Market Analysis • Category Management • Compliance • Demand/Spend • Management • Commercial • Legal • Benchmarking Procurement Operations Procurement Management Procurement Partner Procurement Operations • Invoice & Payment Processing • Cost Management • MIS • Issue Management • Contract management Transactional & Administration Transactional & Administration Customers receive a quality service Procurement is a major contributor to business value Procurement is a duplicated activity

  9. The commercialization question

  10. Conclusion • The sector should always look to achieve ‘Best in Class’ – Don’t be complacent because you are unique • Value social purpose & profit for purpose not one or the other • Look for value from procurement not just ‘price at a point in time’ & compliance • Make procurement support your business objectives

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