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Collaborative procurement in practice.

Collaborative procurement in practice. South West Sustainable Procurement conference. Bill Kirkup Programme Co-ordinator- food and sustainability North East Improvement and Efficiency Partnership. Why collaboration? Aims and objectives What we did What happened as a result

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Collaborative procurement in practice.

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  1. Collaborative procurement in practice. South West Sustainable Procurement conference.

  2. Bill Kirkup Programme Co-ordinator- food and sustainability North East Improvement and Efficiency Partnership

  3. Why collaboration? Aims and objectives What we did What happened as a result What worked and what did’nt Issues, observations and lessons learned. What am I here to talk about?

  4. The ‘Gershon’ report – Releasing Resources to the Frontline CSR 07- 3% cashable efficiency savings 2008-2011. National Audit Office Report ‘Smarter food procurement in the public sector’. National Food Procurement Strategy The bottom line

  5. The UK’s food industry accounts for, 18% of the UK’s Greenhouse gas emissions About 14% of UK business energy consumption About 10% of all industrial use of water About 10% of the industrial and commercial waste stream 25% of all HGV vehicles in the UK Source: Defra But its not all about money!

  6. identified authorities whose contracts were coming up for renewal at a similar time. Gateshead, South Tyneside and Sunderland agreed to engage, Newcastle were also involved but only through the fruit and veg contract. Agreed that this would be done under the auspices of the North East Purchasing Organisation Agreed aims and objectives and delivery options The practicalities

  7. Increase competition for business from regional SME’s Increase proportion of regional produce in the supply chain. Reduce impact of food distribution Stimulate suppliers to think about sustainability and what they can do to help us achieve our objectives. Control ‘maverick’ spend Secure use of P cards by resistant suppliers Project objectives- efficiency AND sustainability

  8. Incorporated a range of new sustainability and efficiency clauses, e.g. regarding waste and requirements for open book accounting. Allowed suppliers to bid for product ‘lots’ e.g. eggs Allowed suppliers to bid to supply only. Identified and encouraged new potential suppliers. What did we do?

  9. Collective annual cashable savings of £165,915 Non cashable savings achieved through elimination of the need for multiple tender processes by individual authorities. Introduction of e-Procurement to previously resistant suppliers Key regional suppliers competed for and continued to win business i.e. they were not deterred by an aggregated contract. Regionally produced eggs being supplied to two local authorities. Improved supplier engagement and receptivity What worked- key outcomes

  10. Problems with project management- to a large extent this was due to uncertainty about respective roles and authority. Exchange of information between authorities slower than required. Despite best efforts still limited competition- BUT have made progress with a recent project involving Durham County Council. What did’nt?

  11. Be clearer about rules of engagement, better project management. More work on stimulating the market. E.g. as per DCC What would we do differently?

  12. "The amount of effort put into this collaboration by all stakeholders should not be underestimated. And significant cashable savings across the board have been made. However there is a lot more work to be done on this initiative in terms of increasing contestability, encouraging new entrants into the supply chain and improving the procurement process" Andrea Tickner Head of Procurement Gateshead Council A Success?

  13. Collaboration as with any form of partnership involves compromise. Loss of authority can reduce influence and ability to influence supply chain. Somebody needs to be responsible for making it happen. How will collaboration will be viewed by the Audit Commission? The use of KPI’s should help. Efficiency and sustainability can be pursued in tandem BUT you may have to change the way you do business. Issues, observations and lessons learned.

  14. Environmental and Social Responsibility Toolkit available from NEIEP Case study containing sustainability/efficiency clauses also from NEIEP http://www.defra.gov.uk/farm/policy/sustain/procurement/sellingpublic.htm source of guidance/case studies and regional contacts. http://www.schoolfoodtrust.org.uk/doc_item.asp?DocId=79&DocCatId=9 school food specific guidance and case studies. Seasonality chart http://www.schoolfoodtrust.org.uk/UploadDocs/Library/Documents/sft_seasonality_chart_a4.pdf Fishonline http://www.fishonline.org/ Envirowise http://www.envirowise.gov.uk/uk/Sectors/Food-and-drink.html Dairy Milk Roadmap http://www.dairyuk.org/enviro.html Useful sources of advice/assistance.

  15. Bill Kirkup, Programme Co-ordinator, North East Improvement and Efficiency Partnership, Guildhall, Quayside, Newcastle upon Tyne, NE1 3AF. 0191 261 3931 07766 500054 Bill.Kirkup@northeastcouncils.gov.uk Thankyou

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