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Procurement Reform: The Need for Better Supply Chain Management

Procurement Reform: The Need for Better Supply Chain Management. John Collington Chief Procurement Officer. Points to Cover. The Need for Reform Our Strategy & Targeted Outcomes Progress/Performance to Date Procurement Supporting Growth. The Need for Reform. From 09/10 Baselines:

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Procurement Reform: The Need for Better Supply Chain Management

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  1. Procurement Reform: The Need for Better Supply Chain Management John Collington Chief Procurement Officer

  2. Points to Cover • The Need for Reform • Our Strategy & Targeted Outcomes • Progress/Performance to Date • Procurement Supporting Growth

  3. The Need for Reform From 09/10 Baselines: • Not leveraging our purchasing spend • Procurements too complex and long • Too much reliance on consultants • ‘Big was beautiful’

  4. Strategy & Key Targeted Outcomes Ministerial Buy In and Commitment B • Increase in spend through GPS • Higher % of CS staff trained • Deployment of enabling technology • Reduction in sourcing time & cost • More contracts & spend with SMEs • Sustainable savings through CSR • Better perception of Procurement! Processes Govt. People Technology Policies Results Deficit Reduction + UK Growth = Burning Platform

  5. Progress to Date • Full Ministerial commitment & support • £3.75bn savings achieved in the first year • £1.4bn on CCL : £800m through CCR work • Lean Standard Operating Procedures • Enabling technologies being implemented • Transparency driving behavioural change>>>

  6. e.g. New Contracts Awarded to SMEs >40% <5%

  7. Managing the Balance is Challenging but Achievable! More Business with SMEs Savings & Value from Every £ Spent

  8. This slide should not be shown it is a marker for the video clip to be played, once the video has finished you should immediately move onto slide 9.

  9. Just Some of the SME Successes

  10. Friday 18th September Whitehall's £1.1bn UK travel needs handed to small business. In a sign that the Government is serious about handing more work to small businesses, Whitehall.....has awarded the domestic part of a potential £2.6bn contract to Yorkshire-based Redfern Travel. UNCLASSIFIED

  11. Procurement Supporting Growth • Sharing ‘pipeline’ opportunities • Pre procurement market engagement • Investment: sourcing & supplier management • Simplified procurement processes: 120 days • Procurement supply chain management

  12. Supply Chain Management • Thought & planned for - pre procurement • Can and will include supplier development • Open & fair opportunities for SMEs to compete • Visible and managed tiers - no longer ‘hidden’ through the prime • Will apply to projects, sectors & categories>>>

  13. e.g. For Government ICT Supply Management Government CIO Government CPO • Joint programme - highest level governance & ambitious targets • Focused on transparency, standards and new ways of working • Will deliver new supply routes, contracting vehicles & better re-use, more SMEs and savings

  14. In Closing: Key Messages for Today • Procurement Reform is making a difference, but still has a way to go • We are committed to making procurements faster, easier & more transparent • We are improving our procurement capability in people and technology • Procurement and Supply Chain Management can and will be better leveraged to support Growth

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